Not to depress you, but our economic troubles are likely to continue for many years — a decade or more. At the current rate of job growth (averaging 90,000 new jobs per month over the last six months), 14 million Americans will remain permanently unemployed... Even if we get back to a normal rate of 200,000 new jobs per month, unemployment will stay high for at least ten years. Years of high unemployment will likely result in a vicious cycle, as relatively lower spending by the middle-class further slows job growth.For Reich to write this. He must not believe in supply and demand. Markets clear. Once unemployment benefits end, people will get back to work. Thus, his nutty forecasting based on current job growth levels, shows you just how empty mainstream Keynesian economics is. Why does he think unemployment will stay at current levels and that this should be the growth rate that should be employed for "many years"?
Bottom line, Reich has no clue how the business cycle develops, why it has a crash phase where temporary unemployment does occur and where the unemployment resolves itself as new jobs surface where the new demand is. Further, he has no idea how a manipulated recovery (as the result of increased Fed printing) will also reverse slow jobs growth trends. To use the current trend, that is a moment in time, to forecast out for years is amateur night.
You're being generous calling Reich clueless. I'm sure his IQ is very high but his EQ (ethics quotient) is very low. He's just another corrupt statist; a parasite living off the productive.
ReplyDeleteYou say, "Once unemployment benefits end, people will get back to work," but I have to disagree.
The government has created so many barriers to business creation, competition and hiring through hyper-regulation that many people will be prevented from working.
Why can't someone just decide one day to start a bank, insurance company or brokerage out of their living room? Because they are required to have certifications, degrees, permits, licenses, etc. And hiring someone? Why bother with the hassle...
We have a situation where the sea of red tape simply keep small businesses from starting or growing.
Only with the over-throw of the regulatory state can we hope to have everyone getting back to work... And avoid simply becoming cube-slaves on some corporate plantation.
And what about the capital depletion that results from the Fed's continued generation of artificially low interest rates? With no savings there can be no capital accumulation with which to employ people, correct? At least not in actual productive long term employment.
ReplyDelete@Econ - Yep. The statist assh***s have managed to engineer the biggest economic cluster f*** in world history.
ReplyDeleteAnd Reich is right there among them... And yet OWS loves him... Reich doesn't bother to tell OWS that college costs are rising because of a Fed induced bubble and public policy... Nope, it's the greedy capitalists.
http://www.youtube.com/watch?v=nR4GOvtcBfU
And he doesn't bother to tell the OWS students that the government/Fed crime syndicate has made them life-long debt slaves... or that they'll probably get to work off that debt in Iran one day soon. The guy is pure evil.
Will unemployment benefits ever end? Wow, someone has clearly not read his Rothbard well enough.
ReplyDeleteWatching Reich on the idiot box makes me embarrassed to be a man. Reich and Krugman are just envy-ridden parasitic "Liberal" children.
ReplyDeleteReich and Krugman should be saying, "I told you so." Time proved they were right and you were wrong. :(
ReplyDelete