Higher Unemployment Rates, The New Norm?

Some economists are suggesting the so-called Great Recession could mean that a high jobless rate and lower standard of living for many Americans will become the "new normal."

Economists and policy makers say the job-creating mechanisms that helped dig the economy out of other recessions aren't in place now. The auto and construction industries helped lead the way out of recession before, but both have been trampled by this contraction.

Many small and midsize businesses, meanwhile, are still in the grips of the credit crunch, struggling to get loans and expand. And because of losses on homes and investments, higher income families aren't spending like they used to, while lower income families can't get credit to spend.

Mark Zandi of Moody's Economy.com says the unemployment rate could be "permanently higher." An Economic Policy Institute analyst says "things will come back," but she predicts elevated unemployment until at least 2014.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Jim Location: SC on Oct 20, 2009 at 01:11 PM
    What Mike said!!!
  • by Anonymous on Oct 20, 2009 at 06:25 AM
    Yep, and it will NEVER improve until they GET RID of obama. He has not improved a thing. BIG TALKER. BIG VACATIONER, BIG LIAR! obama and Michele sure know how to spend that money on themselves!!!! Where in the world is obama and michele on vacation NOW?!!!
  • by Yeah!! Location: SC on Oct 20, 2009 at 06:08 AM
    What Mike said..
  • by Mike Location: Edenton on Oct 20, 2009 at 04:59 AM
    As long as the government rewards those who don't WANT to work with "entitlement" programs and doesn't penalize companies who export jobs unemployment averages will be higher.
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