Tags: Shiller | Unemployment | Social | Discord

Yale's Shiller: Persistent Unemployment to Spark ‘Social Discord’

Tuesday, 29 Nov 2011 08:33 AM

The supercommittee's failure to trim the country's deficits by $1.2 trillion shows leadership is far from seriously tackling unemployment, which could fuel discord down the road, says Yale economist Robert J. Shiller.

Policies such as fiscal stimulus measures aren't lowering unemployment rates and secondly, policymakers aren't aware of the psychological damage long-term joblessness is inflicting on a growing number of Americans.

In other countries, high unemployment rates tend to fuel support for strengthening one area of government and doing away with another to ensure strong decision-making ensues, studies show.
________________________________________________________

Economist Warns: 50% unemployment, 90% stock market drop, 100% inflation.
See the Evidence. Click Here to Watch the Aftershock Survival Summit Now.

________________________________________________________

While that's not happening here on a widespread scale, it could be on the radar.

"Some of the social discord and mistrust of government in our country of late is surely connected to long-term unemployment. We need to accept that we are now in very unusual times, and that unusual steps are needed," Shiller writes in a New York Times column.

134196230.jpg
Occupy LA protesters
(Getty Images photo)
Part of that solution, Shiller adds, must include tax hikes.

"We have to close the government deficit eventually, but that can be done with tax increases and solid programs to create jobs. It was within the supercommittee’s scope to devise a plan to accomplish this in a stimulative way," he says.

"The contractionary effects of tax increases could have been offset by some expenditure increases that would stimulate the economy and help provide jobs. But that didn't happen. I’ve written before that this kind of plan, termed a 'balanced-budget stimulus,' ought to work."

The jobs market is showing signs of improving but remains far from lacking the intensity needed to bring the unemployment rate well below 9 percent.

A Bloomberg survey shows that payrolls will climb by 120,000 workers in November after rising 80,000 in October, which would keep the overall jobless rate stuck at 9 percent.

"We have a labor market that's improving, but it's still not great," says Stephen Stanley, chief economist for Pierpont Securities in Stamford, Connecticut, Bloomberg reports.

"Uncertainty over Europe and the U.S. fiscal situation is an impediment to firms expanding, whether it is labor or capital investment."

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
The supercommittee's failure to trim the country's deficits by $1.2 trillion shows leadership is far from seriously tackling unemployment, which could fuel discord down the road, says Yale economist Robert J. Shiller. Policies such as fiscal stimulus measures aren't...
Shiller,Unemployment,Social,Discord
1912
2011-33-29
Tuesday, 29 Nov 2011 08:33 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved