Could Bernanke go down in history as the Federal Reserve chairman who won the crisis but lost the recovery? If I were in Congress, in the White House, or at the Fed, and we were facing 9.7 percent unemployment, my hair would be on fire. In May, according to the Bureau of Labor Statistics, 6.8 million Americans had been out of work for more than a half a year, up 67 percent from May 2009. As this table shows, the long-term unemployed account for 46 percent of the total unemployed, up from 28 percent a year ago.The NY Times has a discussion on what can be done about this. I have to note a local connection here: one of the economists at the table there is Mark Thoma, who is an economics professor at the University of Oregon :)
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Thursday, June 24, 2010
Why isn't uemployment a topic anymore?
In passing, I noted in an op-ed that policymakers do not seem to be worried about unemployment rates as much as they ought to be. Daniel Gross wonders why the Fed chief, Bernanke, seem to have removed this from his considerations, and writes:
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