A Paradox That’s Quite Clear: The Economy is Still Recovering

Washington Post Wonkblog: “The last few years have been hard on economists trying to predict the path of the U.S. economy.

“You can see just how badly the Fed predictions have missed in the following two charts … The author, Andrew Levin, is a researcher at the International Monetary Fund, and his pictures show how frequently Fed forecasters have overestimated future growth – while, at the same time, underestimating how fast unemployment will fall.”

In his view, Levin’s results “‘bolster the view that the unexpectedly steep decline in unemployment over the past few years is indeed related to the concomitant drop in labor force participation.’ So the charts look paradoxical, but really, they’re both telling us the same thing: This economy still isn’t strong enough.”

Andrew T. Levin, International Monetary Fund

FavoriteLoadingSave to Favorites
  • Yonatan YONATAN

    THAT WILL BE NEWS TO THE MORE THAN 2.6 MILLION OF UNEMPLOYED FAMILIES WITHOUT UNEMPLOYMENT BENEFITS.The Republicans & Democrats, have both Failed, the More Than 2.6 Million Unemployed Families, still Without an Extension Of Unemployment Benefits, since Late Last December. For the past Five And A Half Months, these families have had to face Evictions, Home foreclosures, Bankruptcy, and Homelessness, while these two political parties played “Party Politics” in the senate, Delaying and Postponing the vote. The Republicans in particular, have held the Extension Bill “Hostage” in the senate, never truly planning on passing the bill. When Billions of Tax Payer Dollars have been Approved for the Ukraine, and More spent on Military aid for Europe, the poor & Unemployed in this country are left alone to struggle and suffer economically. We have Representatives that are No Longer Representing the interests of the average American, but are answering to Corporate America and Special Interest Groups instead. These career politicians need be voted out of office in the coming election.

Read previous post:
The Line Between Ignoring Climate Change and Being a ‘Kook’

Jonathan Chait comments on a popular trend among Republicans who assert "their lack of scientific training as a reason to...