Sunday, February 6, 2011

US Unemployment - A Structural Problem


Alan Abelson ends his weekly column in Barron's with the following quote:

"What strikes us most is that, at this rather advanced stage in the recovery, jobs are still hard to come by. Fed chief Ben Bernanke is probably right: It'll take another four to five years to repair the damage wrought to employment by the recession -- if we're lucky."

Abelson, Alan, 2011. Repentant short sellers. Barron's, Feb. 5.

Others have made similar comments.

The employment situation is a heavy burden for economic growth. Consumer spending will be impacted.

Perhaps the only cure is accelerated GDP growth, something that appears to be a remote possibility at this time.

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