Thursday, August 11, 2011

Has the economic recovery so far been a jobless recovery?

My economics professor said in class lecture that it is very possible to have an economic recovery with zero job growth and increasing unemployment. He said the GDP can still increase even when jobs are scarce or non-existent because very large corporate earnings can over-shadow the financial struggles of the ordinary man. And ofcourse the very large corporate earnings exist because the companies maybe getting business from overseas or maybe saving costs and expenses by outsourcing. As a result the CEO's and ultra rich keep getting wealthier while the poor man keep getting poorer. And most of the financial activity is controlled by the handful of big executives and big companies. So it totally masks the financial sufferings of ordinary man. With real unemployment at around 17% (that is U6 unemployment), is it possible that this is a jobless recovery?

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