New York Times (May 30)
The U.S. is facing a string of economic challenges that “constitute an emergency.” Uncertainty in Europe is just one threat. The New York Times writes persistently high unemployment is the “biggest danger.” Nearly half of the 9.9% currently unemployed have been without jobs for half a year or more. At current growth rates, it would take roughly 5 years to attain full employment. Moreover, current growth rates are unlikely as state governments slash budgets and headcounts. The New York Times calls on Congress to keep supporting the economy and postpone cost cutting. The “recovery is still fragile and needs are still great.” Focusing on the deficit now runs the great risk of “condemning the economy to a long, hard slog of subpar growth, barely indistinguishable, in effect, from recession itself. That would be worse for the nation’s finances than upfront spending.”
The U.S. is facing a string of economic challenges that “constitute an emergency.” Uncertainty in Europe is just one threat. The New York Times writes persistently high unemployment is the “biggest danger.” Nearly half of the 9.9% currently unemployed have been without jobs for half a year or more. At current growth rates, it would take roughly 5 years to attain full employment. Moreover, current growth rates are unlikely as state governments slash budgets and headcounts. The New York Times calls on Congress to keep supporting the economy and postpone cost cutting. The “recovery is still fragile and needs are still great.” Focusing on the deficit now runs the great risk of “condemning the economy to a long, hard slog of subpar growth, barely indistinguishable, in effect, from recession itself. That would be worse for the nation’s finances than upfront spending.”
Tags: Economy, Europe, U.S., Unemployment
