subject: Although There is Talk About the Recession Being Over There is no Doubt That Unemployment is Continuing [print this page] It seems that all agree that the Great Depression has bid adieu but there is little general comfort because unemployment is continuing apace. Recently it spiked to touch double digits it being a record since the last 25 years. Pundits have often stressed on the theory that economics is ruled by a cycle of business an upward loop being followed by a downward one. It was as reliable as the seasonal cycles. But defying all norms unemployment is battering the country like an un-seasonal blizzard. But despite the sudden shock it seems the calendar will hold true. But the worrying part is that like the climate change in outside Nature there is one in the economic world too. Jobs are not being replenished and the economy of USA seems to be poised for a long period of unemployment. Archaic methods are being used to measure the business cycles dating back to the 20s. But then the mood of the economy was totally different. The worst affected are the manufacturing jobs. It is the service sector that is pushing the economic engine. The blame is being placed on increased dependence on automation and on globalization. The business group has found thousand and one ways of increasing production without resorting to hiring. Allen Sinai of Decision Economics said, "It's a change in the structure of the business cycle. There appears to be a new tendency to substitute against labor. It's permanent, as long as there are alternatives like outsourcing and robotics." He was speaking at a conference of American Economic Association in Atlanta. Economic theory has often been changed there being nothing new about it. Sometimes old laws come out of rusty cupboards. The technology boom of the 90s was welcomed by many as a release from the inevitability of the business cycle. Overnight puny companies became giants. But when the law of mathematics returned all the silly ideas vanished. In the first decade of the new century again the idea prevailed during the time of the housing boom that this was going to stay and never wane. The rest of the story is not unknown to anyone. Financial innovation has brought everything to a grinding halt. During the 90's unemployment recovery took place within a year. Today many economists argue that a weak economic recovery has begun but the drag is the financial weakness related to the persisting housing crisis.
Although There is Talk About the Recession Being Over There is no Doubt That Unemployment is Continuing
