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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Great Recession may have crushed America’s economic potential
The Great Recession may have crushed Americas economic potentialBy Neil Irwin at the Washington Post
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/11/05/the-great-recession-may-have-crushed-americas-economic-potential/
"SNIP.............................
The authors argue that while the natural rate of unemployment the proportion of joblessness in a fully healthy economy has likely risen due to the recession, that effect should be dissipating. We see the evidence of recent years as suggesting that the natural rate of unemployment may have moved up between ½ and 1½ percentage points since the onset of the recent recession, they write. However, the evidence also suggests that the factors leading to this increase have begun to reverse and that further increases in aggregate demand might therefore bring about further healing in the labor market.
But beyond analyzing the economic situation in which the United States finds itself, the Fed staffers make an important argument worth considering for policymakers here and around the world.
.......
In other words, when there is weak demand and people remain out of work, the cyclical downturn can become a structural downturn. That means that policymakers should move particularly aggressively to keep that from happening.
..............................SNIP"
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The Great Recession may have crushed America’s economic potential (Original Post)
applegrove
Nov 2013
OP
FreakinDJ
(17,644 posts)1. NOPE - it was outsoursed
upaloopa
(11,417 posts)2. The one percent no longer need the consumer to spend
for their wealth to grow. They now legally steal all income growth and bypass the rest of the population.
Wall Street doesn't create wealth by making something. They can will an asset into existence and create a demand for it.
Credit default swaps for example.
It use to be that only PT Barnum could make money that way.