For the 18 months of the Great Recession, labor markets deteriorated. At the end of 2009, they stopped dropping, and they’ve been stagnant ever since. Hiring is now 25% below where it was when the recession began. What 14 million Americans looking for jobs need is hiring improvement.
It is important to be clear about the actual root cause of today’s economic problems which began with the depth and severity of the Great Recession in December 2007. The bursting of the housing bubble wiped out $8 trillion of wealth, which hasn’t come back with falling home prices continuing today. Hundreds of billions of dollars of household spending has been lost, drying up the demand for goods and services that fuel employment.
Economists worry that budget cuts needed to close the deficit in the short term will take effect too soon. In the next couple of years, we need more fiscal support, not less. We need measures that will add more stimuli to the economy.
So if the results of the American Dream Survey are more about material wealth than freedom and liberty what can this mean for the future?
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