Thursday, June 17, 2010
Ezra Klein takes a look at a study out of UCLA and makes the point I tried to make here. The upshot is that we're not growing nearly fast enough to reduce unemployment at anything other than a snail's pace. In past recessions, GDP growth has tended to be higher than normal during the recovery, putting us back on track. In this recovery, we're at normal growth, even slightly lower than normal growth. That's not a good sign. Actually, right now it looks like it's leading to 8.6% unemployment in 2012. But don't worry, congress is... not doing anything about it.