Monday, February 15, 2010

Long term impact of Great Recession

Stimulating read in this month's Atlantic by Don Peck regarding the impact the Great Recession is likely to have on labor markets and society. Points that I find hard to argue: (1) there will be a permanent loss of jobs in finance and construction; (2) there are big concerns about the environment for innovation; (3) young adults face a permanent reduction in lifetime earnings; (4) men are likely to become more marginalized; and (5) some communities that were in good shape as late as 2007 will be in very bad shape soon. All of these points are backed by interviews with researchers who know their stuff. However, Peck ends the article by making an emotional plea for more government spending (and higher taxes if necessary) to create more jobs; no interviews with experts to be seen.

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