Today’s unemployment report, 80,000 new jobs, shows that we might have avoided a double-dip but the economy is far from being on the mend. It takes between 125,000 and 150,000 net new jobs just to keep pace with the growth of the labor force, much less help the 14 million unemployed.
USA Today has a clever story stating that President Obama’s jobs record looks much like Ronald Reagan’s at this point in his first term. As we know, he won a smashing victory in 1984 (LA Herald Examiner headline: This Land is His Land). It acknowledges that “next year’s outlook seems nothing like 1984.” Yes, and the economy then was vastly different. The U.S. had a dominant manufacturing base, among many advantages now gone. (Check out this map of manufacturing employment decline over the decade). And the recession was caused by the successful battle of Paul Volcker’s Federal Reserve to halt high inflation. It had a V shape, as opposed to today’s L where we rattle along the bottom.
So, today’s poll:
The Week’s Links:
- Technology is eliminating high-skilled jobs || NPR
- Inequality trends in one picture || Paul Krugman/NYT
- Exports one bright spot in growth || Econobrowser
- The unbearable cost of sprawl (and what we can do about it) || Atlantic Cities
- The European Central Bank’s risky business || Project Syndicate
- The real cost of long-term unemployment || Fiscal Times
- #OccupyTemple || Daily Kos
Today’s Econ Haiku:
Hail the G-20
Its good for free meals, at least
For the toffs, that is