Another Jobless Recovery Predicted

Bloomberg has the goods on Ben Bernanke's report to congress:

The Federal Reserve chairman, delivering semiannual testimony required in legislation written by the late lawmakers, will describe a U.S. economy returning to growth next year without generating many new jobs. Even with credit markets thawing, Fed officials see unemployment persisting at 8 percent or higher through the final three months of 2010.

“We could have an awkward situation where the recession ends and the job-loss situation continues for some time,” says Christopher Rupkey, chief financial economist at Bank of Tokyo Mitsubishi UFJ Ltd. in New York. That “probably hasn’t been a factor that has pressured the Fed since the 1990-1991 recession.”

This is the 3rd jobless recovery. Why is that? Could it be bad trade deals, offshore outsourcing, bringing in massive foreign guest workers, enabling illegal labor?

The middle class is already completely squeezed by when will, if ever, the U.S. middle class cut through that corporate concrete brain shrouding any statistical fact in D.C. and we get some real policy changes? I guess we all need to scream louder.

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It won't work this time

They've squeezed the middle class down to the point that it has lost its wealth.
There won't be a recovery of any kind in the present system without a return of the American middle class consuming. But without jobs the middle class won't be consuming this time.
Thus the system won't recovery without reform.

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I agree

and I also question if the "economy" really recovered from 2000-2004 either. It's more it was covered up by more debt and the housing bubble.

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Did you say...Recovery?

Isn't 'jobless recovery' an oxymoron? Perhaps this next phase is where automation takes hold 100%...wherein there'll be automated self-serve fast food restaurants with Voice Rec. drive thrus for take out orders. (An automated arm will extend to take your money and return your bag, and say, "Thank you very much," with a Mumbai accent.:-) Indeed, automation is really being put to great use, especially when it eliminates minimum wage labor. Nothing like bothering the best minds with the really huge issues of life!:-)

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jobless recovery

well, shows how we need an EP because most economic indicators that are focused on are not jobs, wages, retirement benefits, etc.

All of the major financial press I think if it's mentioned, it's just referred to as "raising production costs" as if the economy is only for multinational corporations and Wall street.

You're missing a good 20 national offshore outsourcing destinations for call centers. ;)

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Sounds like Manna to me

We3're very close to that now. Marshall Brain wrote a nice SF story about this
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Moral hazards would not exist in a system designed to eliminate fraud.

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Maximum jobs, not maximum profits.

Easier to control the Masses when there are only Two rather than

Three Economic ladders. The Middle Class is being absorbed into the Lower or Poor class. This will make controlling the people so much easier. It's a gradual change of status. First we lose our jobs, next we lose our savings.

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