Sounding the Alarm: Update on the Economic Downturn

Source: Lawrence Mishel, Economic Policy Institute, May 5, 2009

This presentation examines the labor market characteristics of the current recession and the expected landscape for 2010. Unfortunately, the deterioration of the economy since October-November 2008 has worsened so much that our fears last November–that unemployment would exceed 10% in mid-2010 if there were no stimulus–will likely be realized even with the substantial, smart stimulus package in place. Consequently, there will be unacceptably high unemployment and associated income losses and poverty rates next year and beyond. Therefore, we must reexamine our policies and enact further public investments as stimulus, provide relief to the many families that are and will be struggling, and use government to directly generate jobs in areas where private sector activity is especially weak.

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