Business

Be realistic!
by Barbora Misakova

And here we go! Do you remember all the positive news about the economy and its recovery? Do you remember how every second analyst was predicting gradual development? Now forget it! It is a time for truth. And that is, that economy won’t probably never recover into the condition it had before. So forget all the optimistic economists and analysts who were smiling at you and saying: “The crisis will be gone soon.” We just rely on the economic prognosis too much. On Monday we read in the newspapers that joblessness rates are decreasing and we are very close to believe the idea, that all that bad times are already behind us. But then, on Wednesday, we find out! it is not true, as there are still millions of people unemployed, the spending is too low and so there is little reason for businesses to start hiring again. Go on and look around: many small and midsize businesses are dependent on bank loans; households are cutting back and spend less what reflects on lower standards of living. And now imagine that many of the 7.2 million jobs that had vanished since the recession began will probably never come back. As said Heidi Shierholz: “Many factors are pushing against a quick recovery. Things will come back. But it’s going to take a long time.” He estimates that “we will likely see elevated unemployment at least until 2014.” Will unemployment ever get back to previous levels? Bruce Bartlett, a former Treasury Department economist said: “I wouldn’t say never. But I do think it’s going to be a long time. The linkage between growth in the economy and growth in jobs is not what it was. I ! don’t know if it’s permanently broken or temporari! ly broke n. But clearly we are not seeing the sort of increase in employment that one would normally expect.”

related story (sgx15664): http://news.yahoo.com/s/ap/20091019/ap_on_bi_ge/us_vanishing...

by Barbora Misakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch wit! h the World.

posted by Blog TechSource @ 7:05 PM