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Jobless Recovery: Quiddity Misses the Point

The point is being missed here. The point is not that employoment in America is falling because spending on American-made products is falling. Spending on American-made goods and services is rising. Real spending on American-made products is rising at a rate of about 3.5% per year right now and has been since May.

The point is that even though spending on American products is rising, employment in America is still falling.

That's what Uggabugga is missing.

Quiddity at Uggabugga:

uggabugga: Experts see rebounding economy shedding jobs:

Forget a jobless recovery. The economy may be entering a recovery with job losses.

Third-quarter estimates this week are expected to show that the economy grew for the first time since the quarter ending in June 2008. Despite the estimated 3 percent expansion and a stock market that has been on a tear since March, hundreds of thousands of people are still being laid off each month.

Eight million jobs have been lost nationwide since the recession began two years ago, and by some measures workers face the worst job market since the Depression. The average laid-off worker has been without a job for 6 1/2 months, a post-World War II record. Many of those workers will never recover financially.

Employment mystery

Economists are puzzled as to why job growth has slowed, citing everything from higher health care costs, to higher productivity, to Chinese currency manipulation.

"It's a complete mystery to me," said Brad DeLong, a liberal economist at Berkeley, as he drove home from purchasing a made-in-China flat screen television in his Kia Optima. "I'll have to get online to research this, but first I have to contact Verizon's Bangalore-based call center to restore my DSL service."

Okay, that last paragraph is satire.