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It takes GDP growth of about 2.5 percent to keep the jobless rate constant

Started by HT1
almost 17 years ago
Posts: 396
Member since: Mar 2009
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"It takes GDP growth of about 2.5 % to keep the jobless rate constant. But the Fed expects growth of only about 1 % in the last six months of 2009. So that's not enough to bring down the unemployment rate." Bernanke What about next year? What about the next 10 years??
Response by mh23
almost 17 years ago
Posts: 327
Member since: Dec 2007

Continued erosion in the job market. In addition, with the massive gains that have occurred in productivity, when the economy does pick-up, there will be less of a demand for workers from the firms that laid them off.
Your observation points to one of the many reason why deflation, not inflation, is the primary concern right now. China's market is going down, dollar is strengthening as are Treasuries. Next will come a mjor correction in commodities, especially base metals.

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