Not to depress you, but our economic troubles are likely to continue for many years — a decade or more. At the current rate of job growth (averaging 90,000 new jobs per month over the last six months), 14 million Americans will remain permanently unemployed... Even if we get back to a normal rate of 200,000 new jobs per month, unemployment will stay high for at least ten years. Years of high unemployment will likely result in a vicious cycle, as relatively lower spending by the middle-class further slows job growth.
For Reich to write this. He must not believe in supply and demand. Markets clear. Once unemployment benefits end, people will get back to work. Thus, his nutty forecasting based on current job growth levels, shows you just how empty mainstream Keynesian economics is. Why does he think unemployment will stay at current levels and that this should be the growth rate that should be employed for "many years"?
