Economic Situation Fall 2011

Economic Situation Fall 2011

Ryan Dover, Amanda Eddie, Emily Knapp, Brandon Palmer, Mike Shields

Introduction

• 13 Recessions, since Great Depression• Oil prices 1970's• Tech stocks 1990's• Subprime mortgages• Job lag• Poverty• Unemployment 

Recession

This recession has been 2x longer than the recession in the

early 90’s

This recession was 15x larger than the previous one

Recession Cont.

Job Growth

http://www.cleveland.com/datacentral/index.ssf/2010/10/us_job_growth_and_loss_under_p.html

Jobs Program

• Keynesian Fiscal Stimuli• Payroll Tax Cuts• New Demand

 Increase GDP  Creation of More Jobs

http://www.msnbc.msn.com/id/44489655/ns/business-eye_on_the_economy/

Job Outlook

• Positive • Not Drastic• Added 1% by

2014• Slow Recovery 

http://www.usatoday.com/money/economy/story/Jobs-Forecast-2011/34083932/1

Today’s unemployment rate is not historically unprecedented, but it only tells part of the story…

Poverty on the Rise

According to Census Bureau data, the U.S. poverty rate rose last year to 15.1 percent, the highest level in 17 years.http://www.npr.org/2011/09/13/140438725/census-2010-saw-poverty-rate-increase-income-drop

How many are truly unemployed, or underemployed?

Typically, “job leavers” comprise about half of total unemployed. Today, “job losers” account for a

much higher portion.

Today’s job seeker spends about 22 weeks seeking

work, nearly double that of recent recessions.

Conclusion

• 13 recessions since Great Depression

• Recession ended June 2009

• Unemployment problems persist

• Housing prices still falling