Almost two and a half years since the recession officially ended, we are finally observing a modest recovery in the job market. Even if we discount the 42,000 new holiday season jobs for “couriers and messengers,” there is clearly some jobs growth in key sectors of the economy. Unfortunately, aside for the fact that the recovery is languid and underwhelming by historical standards, it is also unwholesome. Our economic recovery is similar to a computer that is repaired from a serious virus; it functions adequately but is never the same. In other words, we are reaping the benefits of a government-managed Keynesian recovery.(full story at redstate.com)
During 2008-2009, instead of letting the economy settle and enjoy a robust recovery through the perennial business cycle, the Bush and Obama administrations engaged in fiscal stimulus, monetary stimulus, housing stimulus, bailouts, and takeovers of major industries. Perforce, our economy, as much is it will inevitably recover, will be fundamentally weaker than it was prior to the recession. Historically, we have always come out of recessions in a stronger position than prior to the economic downturn, but not this time.
Nothing is more emblematic of our permanently damaged economy than the interminable shrinkage of our labor force. Our labor force is roughly 850,000 smaller than it was when the recession ended in middle of 2009, even though the civilian population of working age people has increased by roughly 4 million. At this point in the Reagan recovery, the labor force had expanded by 4 million.
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