US Recovery Elusive; Job Competition When You Graduate

In class on Wednesday I referred to the economic troubles that plagued Japan a few years ago. I claimed that the U.S. could face similar troubles in the next few. The New York Times recently reported:

In the United States, a robust recovery remains stubbornly elusive, and Mr. Bernanke is said to be ready to take new, unconventional steps to increase the money supply in order to maintain the uncertain growth of the past year. He is also said by close associates to favor further fiscal measures to stimulate the economy. But in the current political climate, with Republicans poised to make strong gains in the midterm elections while preaching fiscal austerity, the prospect of more federal stimulus spending seems remote, and it is unclear if monetary policy alone will be enough to restore healthy growth.
Partly as a result, some economists now predict that it could take years or even a decade for the American economy to regain the levels of employment and vigor achieved before the 2008 crisis. The growing political pressure for cuts in federal spending — along with plunging consumer confidence and companies that seem more intent on cutting costs and hoarding cash than investing in new growth — have led economists to talk of the United States’ entering a grim new era of austerity.

If memory of U.S. history serves me well, the U.S. has not faced deflation since the mid-1950s. What does this mean for you? Competition for jobs will be tougher when you graduate. Therefore, creating a good resume becomes an even more important priority.