The Least, First

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Archive for February 9th, 2009

Bush recession different in size and substance

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This recession is not only more serious than others of recent memory, but it affects different parts of the economy than previous ones have.  A couple of graphs show the former, and a few sentences, the latter:
clipped from www.dailykos.com

For the first time ever, more private-sector services [industry] jobs have been lost than goods-producing [manufacturing] jobs have been lost.
Many of those lost jobs were in retailing, which has seen its largest job losses since the data collection began in 1939
Some economists say many of those jobs will never come back as Americans wean themselves from the easy credit that’s fueled their consumption for the past 25 years.
“A lot of them are gone for good,” said Nigel Gault, chief U.S. economist for IHS Global Insight, a major economic consulting firm. “The age of the U.S. and world economy being driven by the U.S. consumer may be in the past.”
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UPDATE:  This morning, GM announced layoffs of an additional 10,000 workers.

The President’s stimulus plan is, doubtless, far from perfect.  But it has the support of the most brilliant economists we have, including the Nobel laureate Robert Krugman (whose chief concern is that it is far too small).  Investing in the economy has the potential for paying the government back manyfold, even above the cost of borrowing.

And another ten thousand people will be bringing bad news home to their families.

Seems foolish to delay.


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Written by Monte

February 9, 2009 at 9:04 pm