Posts Tagged ‘US’

Joblessness in the US to stay for a while?

Friday, February 19th, 2010

This article says unemployment will remain high and change America significantly:

The Great Recession may be over, but this era of high joblessness is probably just beginning. Before it ends, it will likely change the life course and character of a generation of young adults. It will leave an indelible imprint on many blue-collar men. It could cripple marriage as an institution in many communities. It may already be plunging many inner cities into a despair not seen for decades. Ultimately, it is likely to warp our politics, our culture, and the character of our society for years to come.

How much depends on consumer spending?

Tuesday, June 23rd, 2009

Some people are hoping for an economic recovery this year but I am not so sure any respite will last more than a few months because I don’t see evidence that consumer spending will increase.

Due to relatively high unemployment and many workers who are unable to get raises, how greatly can consumer spending increase? If consumer spending doesn’t increase, corporate profits can’t increase much.Neither can government revenue.

So how is the economy supposed to recover?