Atlas still on a smoke break. Waiting for uncertainty to clear, keeping their capital in reserve for the enormous tax hikes coming to pay for all the recent spending. At this point, why take on more employees, or make capital investments in your company – when it’s not worth the risk and you can’t keep the reward? If we mimic Europe’s tax- and welfare- policies, we should not be surprised if we end up on the same tragic-jectory with chronic unemployment and unsustainable debt.
If the same percentage of adults were in the workforce today as when Barack Obama took office, the unemployment rate would be 11.1 percent. If the percentage was where it was when George W. Bush took office, the unemployment rate would be 13.1 percent.
The two recessions previous to this one – 1990, 2001 – very shallow, so bounce back was gentle as well.
The recession before those – 1981 – Reagan & Volcker aggressively squeeze inflation out of the system with a sharp recession and sharp rebound.
The previous recessions were sharper, with sharper rebound, and didn’t last as long. Probably because policies and automatic stabilizers in the system weren’t fully functional at the time. That ’81 recession lasted a while because the cure was severe – but it lead to pretty much 25 years of (near) uninterrupted growth.