A bundle of joy just in time for Thanksgiving!

>> Monday, November 16, 2009

OK. Not really:

The rest of what needs to be done rests in the combined hands of the President and Congress. For a pittance compared to the full so-called stimulus bill, cash for clunkers produced noticeable growth. If the government wants to pass a real stimulus bill, actually designed to create large numbers of jobs, it could get a lot of bang for only a few hundred billion dollars.

No one, not the Fed, nor Congress, nor the President, is serious about full employment. If they were they would have done, would be doing, and would be planning on doing different things than they have done.

Employment will probably start picking up again in the spring, but employment as a percentage of America’s population will not recover this economic cycle. My suspicion is that it won’t recover within 20 years.

That is a policy choice, either deliberately, or through stupidity (I suspect both.) Fixing it requires all three of the Fed, President and Congress to decide to do the right things for the population as a whole, rather than for their friends, donors and cronies in the financial industry.

I leave it to others to decide how likely that is to occur.
Ian Welsh

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