US (and Coral Gables) Economy in Real Danger

The unfathomable politics of the US is driving the economy into stagnation at a time when there are more than 20 million people unemployed or poorly employed.  Politics is at the worst moment centering current public political warfare on the deficit and the danger of the US bond market coming under attack (I guess from our own financial sector that had been saved by the US government not too long ago).  This translate into deepening social welfare declines, a lost generation of professionals graduating and going into professionally demeaning jobs, if any.

We will now see what leadership emerges in this country now that the growth prospects will hurt not only the middle class, but the business and financial class too.

Today’s employment report should be a wake-up call to policymakers who continue to say the budget deficit is a more immediate threat to the economy than the jobs deficit.  Nearly two years after the economy technically turned the corner from recession to recovery, job growth was disappointing in May and unemployment remained high.  At the same time, interest rates are very low (see chart), indicating that financial markets are far more concerned in the near term about a sluggish recovery than about deficits, debt, or inflation.

via Statement: Chad Stone, Chief Economist, on the May Employment Report — Center on Budget and Policy Priorities.

About Stephen E. McGaughey
Resident of the City of Coral Gables

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