http://www.realclearpolitics.com/art...rom_98811.html#Now that old economy didn't work very well when it was growing. We lost high wage manufacturing jobs during the supposed "recovery" under Bush.
Most Americans lost ground even while the economy was expanding. Household debts reached new highs. Inequality soared to Gilded Age extremes.
But now we can't even get back to that performance. Americans have lost some $13 trillion in assets. They are tightening belts, trying to pay down debts, terrified as jobs are lost, hours cut, benefits slashed. Consumers won't drive the US economy, much less the world's. And businesses aren't investing because consumers are cutting back. They are increasing profits by laying off workers and cutting back expenses. States and localities are headed into severe layoffs of teachers and police. The economy isn't going to be buoyed by soaring exports to a world in recession. The only thing holding the economy up now is the deficit financed stimulus plan and the automatic stabilizers like food stamps and unemployment benefits.
Where will the jobs come from? Wall Street can produce another bubble, but that won't put the 15 million without jobs to work, one third of which have been out of work for at least six months.