In the past few weeks, the good economic news pouring in has kept newspaper business sections buoyant, but the celebrations may be premature. One of the biggest problems barring a quick comeback for the economy is inadequate aggregate demand—without demand, we can't produce more goods and can't hire more people. The Treasury estimates that the gap between actual and potential output is over 7 percent—that's equal to $1 trillion worth of goods and services. The U.S. has a considerable 12.1 million jobs gap as well, which won't close until 2024 if we keep adding 200,000 new jobs per month, the pace set in December 2011.
- Inside the Fed in 2006: A Coming Crisis, and Banter The New York Times
- Amid Downturn, More Older Americans Employed Than Ever Before The Washington Post
- Mitt Romney: America's Next CEO? The Economist
- New Study Shows How Golden Parachutes Are Getting Bigger The Daily Beast
Chart of the Day
Reason to Get Out of Bed in the Morning
You may also like:
You need to be logged in to comment.
(If there's one thing we know about comment trolls, it's that they're lazy)