The U.S. economy barely added jobs for the second month in a row in June, and the unemployment rate rose to 9.2%, which is the highest level this year, adding to concerns the labor market will take years to recover. Total jobs added per the NFP survey: +18,000 on expectations of 105,000. Also, the Labor Force Participation rate of 64.1% just dropped to a fresh 25 year low. (Only 64% of the those eligible to work are actually working. Not a good sign for the economy going into the second half of 2011.)
This is the second complete forecasting disaster for Wall Street's economists in the last two months. And, these pundits are getting paid the mega-bucks to get it right. The problem is that the majority of these pundits have been schooled in Keynesian economics, which has finally demonstrated that you can not borrow and spend your way out of recession/depression. Or, government deficit spending does not create lasting economic recovery, instead it creates asset bubbles (stock market) and a false sense of security. In other words, I am looking for a few good Austrian economists, like Mises and Hayak.
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