Economic hangover?

The other day I was driving around and listening to one of those programs about money and the economy. They were talking about how the economy was much better but that there were still high unemployment numbers.

This seems inconsistent because with a stronger economy, there should be more jobs and fewer people out of work. Partly this was being explained by the fact that the higher economic numbers are due in large part to corporate profits and many corporations do not hire people in this country.

The term that was used was “economic hangover.” I have not heard this before but it is a brilliant way to describe the current state of the economy. The morning after, with a groggy, fuzzy-headed feeling accompanied by a slight headache.

I hope we can find an economic equivalent of asprin!

D.D.

COMMENTS

  1. Paul Miller wrote:

    Another term or phase that we are hearing is “new normal.” The reality is that there has not been a recovery in residential construction and it does not appear at least in my area that there is going to be a recovery for quite some time.

    I don’t think there can be a recovery until there is an increase in the money supply and that will not happen until people and businesses start to borrow. The money supply is increased through borrowing and the Federal Government is really the only entity borrowing.

    Another issue is the lack of confidence. People in my area do not have the confidence in real estate and housing that they had 10 years ago. Although there has been an increase in building, most of the new construction is in lower cost housing as people that have been renting are looking to own because the cost of ownership is less than renting.

    For me, it has meant that we have had to look to different markets for work.

  2. Chuck R wrote:

    If you want unemployment to go down, then stop paying people not to work.

  3. Mike wrote:

    David, I’ve got bad news for you….most of the jobs are not coming back and it will become a much bigger issue in the years to come. I’m about the same age as you, so like you I remember the days where a stronger economy meant more jobs. Now, a stronger economy means higher productivity, which generally means more machines and fewer workers. The auto plants near me employ far fewer people than many years ago. In some cases you have 2 or 3 people working with machines a half block long cranking out thousands of parts a day. It’s every industry and every job category, from lumberjacks being replace by heavy equipment to secretaries being replaced by computers with voice technology (and if you believe Amazon, delivery people being replaced by drones). In our industry, how many carvers will be unemployed due to CNC machines?

    On the other side of things, it’s not all bad news. I remember over 40 years ago hearing how technology was going to make our lives better and easier, and I think it’s true. From air conditioning to HDTV to breakthrough medical science, our lives are a lot better than people had it 50 years ago. Downright cushy in comparison. The number of people I know that have made to to 80 and older is triple what I remember from 50 years ago. It gives me hope that I may still be around a while longer to watch the world change and experience all of the crazy things that life keep throwing at us!

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