My outlook is bleak too. More stimulus is not in the cards right now. Re: stimulus, 2010 could be the year of The Sandwichman.
On Wed, Oct 7, 2009 at 9:58 AM, Eugene Coyle <eugeneco...@igc.org> wrote: > It won't go like the '80s. Max asked, (below) how things will go if high > unemployment lasts five years or more. > > First, it seems more than a possibility that high unemployment will persist > for years. More a likelihood of high unemployment. Monetary policy is > already stretched to what we used to think was its limit. Fiscal policy, > i.e. government spending to replace the consumer and investment spending > gone missing seems totally constrained by the hawks on the deficit, by the > decline of the dollar, and by the diminishing (or disappearing?) interest of > other countries to lend to the USA. > > That leaves the third tool of macro policy, cutting working hours offered on > the market. There is, and has been, a surplus of work on offer for years, a > cumulatively growing surplus. That leaves wages and consumer buying weak. > In other surplus supply conditions, steps are taken to correct the > imbalance. To correct this one the Wages & Hours Act needs to specify a > four day week. (Four days for several reasons, not discussed here.) > > Since even "progessive" economists seem reluctant to discuss, never mind > advocate cutting the work week, it will take years to achieve what must in > the end be achieved. > > I think Max is asking a question about uprisings, riots, chaos, etc. I > don't have a good record on predicting that sort of thing. > > Gene Coyle > > > On Oct 2, 2009, at 6:54 PM, Max B. Sawicky wrote: > >> As an alternative to this bickering, entertaining as it is, I'd >> suggest >> all assembled try and bend their minds around the possibility of very >> high unemployment >> lasting five years or more. We had something like that in the 80s, >> with no mass >> uprising in prospect. How might it go this time? >> >> >> >> >> -----Original Message----- >> From: pen-l-boun...@lists.csuchico.edu >> [mailto:pen-l-boun...@lists.csuchico.edu] On Behalf Of c b >> Sent: Friday, October 02, 2009 3:14 PM >> To: pen-l@lists.csuchico.edu >> Subject: [Pen-l] Jobless rate reaches 9.8 percent in September >> >> From: Doug Henwood >> >>> Jobless rate reaches 9.8 percent in September >> >> What? Can't Magic Barry fix it? >> >> ^^^^^ >> CB: What ? No book from Wallstreet Doug on the collapse of his street >> ? >> _______________________________________________ >> pen-l mailing list >> pen-l@lists.csuchico.edu >> https://lists.csuchico.edu/mailman/listinfo/pen-l >> >> >> _______________________________________________ >> pen-l mailing list >> pen-l@lists.csuchico.edu >> https://lists.csuchico.edu/mailman/listinfo/pen-l > > _______________________________________________ > pen-l mailing list > pen-l@lists.csuchico.edu > https://lists.csuchico.edu/mailman/listinfo/pen-l > _______________________________________________ pen-l mailing list pen-l@lists.csuchico.edu https://lists.csuchico.edu/mailman/listinfo/pen-l
