If you don't feel bad enough about the economy, spend a little time with Joseph Stiglitz.
The Nobel-winning economist spoke to a gathering of business editors and writers in New York Thursday evening and offered little encouragement about an economy struggling to gain momentum two years after the near-meltdown of the financial sector.
"The good news about this recession is that it's going to last a long time," he offered in one effort to provide at least a bit of gallows humor about the economy's structural problems.
Stiglitz is a strong advocate for more government stimulus of the economy and thinks the long-lasting nature of the slowdown means there is time for a new program to be well-crafted and have an impact.
Stiglitz acknowledged that the economy is out of recession "in a narrow sense," as determined by a panel of economists that sets business cycle dates. But he said the slow pace of job growth, coupled with a huge overhang of housing supply, means the nation's economic pain could linger into 2012.
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3 comments:
Why do I keep getting the notion that only GOVERNMENT workers and their supporters think the recession is even close to being over? The REST of the nation, many still looking for work, taking part-time jobs with low wages and no benefits, scrimping on groceries, or moving out of their house due to foreclosure, well, THEY still wonder where all this "success" is at...I suppose they could ask their congressman after those low-lifes get back FROM VACATION!!! It's a good job if you can get it (and keep it)...
Fact is, to lower the unemployment rate by 1% would require a YoY GDP of +5%. We've had one such quarter of growth under Obama, and that was right after the "stimulus" was enacted and a rush of capital from the gov't came in. Truth is, we're likely to see 2-3% GDP growth in 2011. It's highly unlikely for the unemployment rate(even with the gov't fudging numbers) to go under 9% by 2012.
Until Americans finally reach the conclusion that greed is not good, more is always less in the long run, everything will stay the same or fall to the bottom overnight. Businesses bairly hanging on will start to dissapear after January 2011 because of their increasinly heavy government burden is going to get heavier. Someone commented in the DT this week about a $500K house selling on the courthouse steps for $165K. As bad as that is for the previous owner it was necessary and will even become more necessary this coming winter. If downturn in pay doesn't come for, get ready, the job you presently have will be eliminated. Continual adding of physcal responsibility to middle class working class will break, and everything will topple worldwide overnight. Take less, the law of supply and demand or suffer your greed.
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