Tuesday, November 2, 2010

Jobless Recoveries Getting Longer and Longer…

A friend of mine attended high school in Washington D.C. in the early 50's, and he was told by the teachers that production would be so good that eventually they would only have to work 4 hours a day, but they would be paid the equivalent of a full day's wages---because the productivity would be so high.  So, memo to all the fat cats, we want FEP (full employment policy)now!  That means 3 percent unemployment or less.  Then, wages will be bid back up, our tax base will be restored, and you fat cats will make even more money, because everybody will have money to spend on your products. No borrowing or printing money to get FEP.  Just end outsourcing, offshoring and illegal immigration.  Or, in all probability, there will be no way to stop the confiscation of all your factories, and even your homes and personal wealth.  Just a friendly piece of advice.  rng-----

Just a friendly little graph to remind you it's not all China's fault.

----lee

February 2, 2010

Steve Roth at Asymptosis has a graph (originally from Calculated Risk) showing how jobless recoveries are getting longer and longer—in fact quite dramatically so. I think the primary reason for this is advancing job automation technology (see the post below), and I think there’s no reason at all to expect that this trend won’t continue and quite possibly accelerate in the future. Mainstream economists, of course, are oblivious—and by the time they start to see reality, things may get truly scary.
We’ve been hearing more about “jobless recoveries” over the years, but it’s pretty profound how rapidly the trend is increasing.

To read more...
http://econfuture.wordpress.com/2010/02/02/jobless-recoveries-getting-longer-and-longer/

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