[doxinwasido]

http://finance.yahoo.com/news/79-mil...19835.html?x=0

7.9 million jobs lost, many forever

Chris Isidore, senior writer, On Friday July 2, 2010, 11:46 pm EDT

The recession killed off 7.9 million jobs. It's increasingly likely that many will never come back.

The government jobs report issued Friday shows that businesses have slowed their pace of hiring to a relative trickle.

"The job losses during the Great Recession were so off the chart, that even though we've gained about 600,000 private sector jobs back, we've got nearly 8 million jobs to go," said Lakshman Achuthan, managing director of Economic Cycle Research Institute.

Excluding temporary Census workers, the economy has added fewer than 100,000 jobs a month this year -- a much faster and stronger jobs recovery than occurred following the last two recessions in 2001 and 1991.

But even if that pace of hiring were to double immediately, it would take until 2013 to recapture the lost jobs. And the labor market very likely doesn't have years before it gets hit with the shock of the inevitable next economic downturn.

"It's virtually certain that the next recession will come before the job market has healed from the last recession," said Achuthan. (Read 'Stimulus: The big bang is over')

More frequent recessions: Despite signs of slowing economic growth, Achuthan is not predicting that the U.S. economy is about to fall into another downturn later this year.

But a combination of a slower growth and greater volatility is a prescription for as many as three recessions over the upcoming decade, he said.

[Zvssxstw]

Someone's been reading Paul Krugman's NYT's column, The Third Depression. The Nobel Prize winning economist has been saying just this for a while now, although he advocates more stimulus money, not the duck & cover policies that many are espousing these days.

What Mr. Krugman said yesterday of GPS with Fareed Zakaria is that yes, some jobs will never come back, but corporations have large amounts of cash that they are just sitting on, not investing. Congress does not have the political will to authorize what is needed, a much larger stimulus, something he advocated from the beginning. As a Kyenesian economist, he is in stark opposition to the Reaganomics-like policies now being pushed by many in Congress. He argues, and rightly so, that Reaganomics ultimately led to more poverty (despite being touted as "trickle-down," it didn't), and exploding deficits which for the first time in history took the U.S. from a creditor nation to a debtor nation.

[PIORARMADDERI]

Why don't these fools in congress remember that David Stockman, the architect of Reaganomics, acknowledged that it was a failure before Reagan left office??????