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U.s. Headed For 'jobless' Recovery

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http://abcnews.go.com/ThisWeek/Politics/st...6402&page=1

Nobel-Prize winning economist Paul Krugman said the nation is on course for a "prolonged jobless" economic recovery unless the Obama administration steps in with a second round of government stimulus money.

"The fact of the matter is that the unemployment rate is much worse than the administration contemplated or that most people expected," Krugman told ABC News. "So the economy is much weaker than we thought it'd be, meaning, in fact, it could use more stimulus."

The Princeton University economist and New York Times columnist has become one of the leading voices of the left critiquing the Obama administration's handling of the economy, the financial industry bailout, health care reform and climate change.

"I'm trying to move the public debate in a better, more sensible direction," Krugman said. "There were not a whole lot of voices at least in the public eye saying what a lot of economists had concluded, which was that the Obama stimulus plan was, if anything, too small."

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tomorrow's world did promise robots would do all the work and we'd just sit about relaxing?

Unless they murder you and roger your wife ala The Demon Seed with Julia Christie!

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'Jobless' recovery....

That is brilliant. A new oxymoron...

I did think that was a funny way to put it - the heart has stopped and the recovery is under way -

missing the heart is not an issue any longer

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This is how unemployment correlates with repossesions in the US. Not much prospect for a house price recovery there surely, and aren't we being told there is no revovery till house prices in the US recover?

FreddieDeliquencyUnemployment.jpg

post-17994-1246486350_thumb.jpg

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So he wants more public money thrown at the problem. The bloke is obviously an idiot. It just goes to show that education is no substitute for intelligence.

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tomorrow's world did promise robots would do all the work and we'd just sit about relaxing?

Yes and they did come in many forms. Often hard to see. Our society could go down a utopian path where robots are handling more and more of the work while all people are enjoying more leisure time and a higher standard of living.

Or we could keep on the same dystopian path of people losing their jobs to automation, resulting in lower consumption as the people are not able to replace the job, resulting in businesses cutting back and a vicious circle.

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Krugman is something else. Up there with Greenspan in the profane buffoon stakes and I find it an indelible mystery as to why he was awarded a Nobel Prize, he brings the award into disrepute. You might want to note that he regularly praises Gordon Brown.

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Krugman is something else. Up there with Greenspan in the profane buffoon stakes and I find it an indelible mystery as to why he was awarded a Nobel Prize, he brings the award into disrepute. You might want to note that he regularly praises Gordon Brown.

Just about to add that.

He's a big Gordon fan.

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And we will experience something similar here.

Service industries will become more profitable by shedding workers, more outsourcing, fewer jobs.

So more people supported by the state and a smaller and smaller property owning class with a bigger slice of the cake.

Its called globalisation and it inevitably increases inequality.

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It is good that people will still bring about a recovery through consumer spending even though they don't have a means of earning a wage.

Very decent of them.

what the suggestion seems to be from some quarters is that the fiscal stimulus is now having an effect on this minor economic rebound in some areas, but unless something can be done re the deteriorating unemployment figures, more stimulus will be required to counter the jobless increases.

This i think presents a problem for the uk, the policial squabbles are about future debt management and spending cuts or slowing in the rate of spending....so the risk of undoing any of the good work from the stimulus could be serious. the central bankers are focused on the monetary aspect of things, so they blather on about what the central bank did wrong during the great depression, while politicians and some economists want to focus on the fiscal side and point out what the US administration did wrong during the great depression to cause the 'double dip' back then.

But if the can't convince the media of the need for further fiscal props, now that the politicians themselves are talking of greenshoots and stabilization, then the double dip is the risk.

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I wouldn't dismiss this too lightly.

If "the economy" went up because all the workers got replaced by robots and then started to die out, people like Krugman would probably cheer it on.

Central bank shill.

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Jobless, skill-less, product-less, investment-less recovery.

There, fixed, all it needed was more billions of taxpayer money pumped in to prop consumer spending and bank bonuses.

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I wouldn't dismiss this too lightly.

If "the economy" went up because all the workers got replaced by robots and then started to die out, people like Krugman would probably cheer it on.

Central bank shill.

A cyborg led recovery, well who'd have thunk it.

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It chimes nicely with 0% growth.

I know this is a bit picky but 0% growth makes sense (ie zero growth). What GB said was utterly laughable because he said:

No, total spending will continue to rise, and it will be a 0% rise in 2013–14.

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Krugman is half right, right about the jobless bit.

http://www.marketwatch.com/story/us-payrol...june-rate-at-95

U.S. payrolls down 467,000 in June, rate at 9.5%

Explore related topics

Banks Industrial, Equipment

Story Comments Screener (53)

Alert Email Print Share By Greg Robb

WASHINGTON (MarketWatch)-Workers lost jobs at a faster pace in June than in the prior month, the Labor Department said Thursday.

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And we will experience something similar here.

Service industries will become more profitable by shedding workers, more outsourcing, fewer jobs.

So more people supported by the state and a smaller and smaller property owning class with a bigger slice of the cake.

Its called globalisation and it inevitably increases inequality.

Yes and manufacturing and farming was able to be automated/outsourced or whatever first, because it is so standardized. But retail and service isn't far behind in the grand scheme of things.

Fiberoptics allowed the call centers to go to India. There is no real reason the whole back office won't go to India in the next say 10 years. Warehouses are just starting to automate with robotics. Probably in the next 10-15 years 2/3rds of the warehouse jobs will go.

Edited by aa3

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Yes and manufacturing and farming was able to be automated/outsourced or whatever first, because it is so standardized. But retail and service isn't far behind in the grand scheme of things.

Fiberoptics allowed the call centers to go to India. There is no real reason the whole back office won't go to India in the next say 10 years. Warehouses are just starting to automate with robotics. Probably in the next 10-15 years 2/3rds of the warehouse jobs will go.

Just the start of things returning to normal. Local industries, local shops, local economic community. Downsizing in a good way IMHO. People will survive, with different values out of necessity. So the big multi nationals don't make a pile of money and spoil the countryside with shopping malls. We would all be better off-aint the end of the world because GE profits take a nosedive.

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