When Economic Policy Isn't Focused on Growth, the Poor Suffer Mightily

By Carl Schramm

It’s been a long time, as in years, since we’ve had a certain sense that the economy is or might be set to enjoy sustained growth.  We are so eager for good news that any upward pointing indicator gets celebrated in the media, in part because it confirms the political biases of many people in the press about the worth of President Obama’s stimulus policies. But, even the most recent jobs data indicating that unemployment fell to 7.5 percent is clouded by the realization that the number of people who left the labor market grew to a record high.  It suggests fairly clearly that the lower rate of unemployment is what economists call “artifactual” data.  The number of permanently unemployed and those working in jobs well below their skill levels persists.  Just ask this year’s college graduating class about its prospects. [more...]