Friday, January 01, 2010

U.S. economy took a dive in the 2000s, a lost decade for workers

The Washington Post reports:
There has been zero net job creation since December 1999. No previous decade going back to the 1940s had job growth of less than 20 percent. Economic output rose at its slowest rate of any decade since the 1930s as well.

Middle-income households made less in 2008, when adjusted for inflation, than they did in 1999 -- and the number is sure to have declined further during a difficult 2009.
A decade of a massive increase in government spending, yet the Keynesian multiplier produced nothing in job growth. What better proof that every dollar government spends is one less the private sector has to spend?