Commentary: Structural woes in economy creating ‘permanent underclass’
Wall Street Journal, 14 October 2011
The public knew this much earlier than economists or pundits did, and as for politicians — don’t ask!
. . . . .
Listen to Charles Plosser, president of the Federal Reserve Bank of Philadelphia, in a speech a couple of weeks ago.
“These numbers are troubling, especially when more than 40% of the unemployed, or some six million people, have been out of work for 27 weeks or longer,” he said.
“Millions of unemployed workers may take longer to find jobs because their skills have depreciated or they may need to seek employment in other sectors. These structural issues will take time to resolve. Jobs and workers will need to be reallocated across the economy, which is a long and slow process.”
Phi Beta Iota: The US Government is in grid-lock, with 1950's mind-sets, 1970's technologies, and 1990's spendthrift ways–in other words, it is completely out of touch with reality and has no idea how to cope with the need to retrain a quarter of the population across all age groups in a year or two. Hint: bail out the public, not the banks and certainly not the multiple complexes of corruption. Start by using military to ingest the entire unemployed population into receiving and retraining centers with full salary for each individual committing to retraining.