Our Grim Economic Destiny

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It’s now crystal clear that (a) there will be no further monetary stimulus, (b) there will be no further fiscal stimulus, (c) Europe is in real trouble that it’s very unlikely to address aggressively, and (d) China’s growth is slowing. We should be investing enormous amounts of money into green research and green adaptation (higher efficiency, conservation, etc.) but we’re not, and there’s little prospect of this happening in the near future.

It’s very hard for me to be optimistic about the economy in any way these days. Karl Smith keeps trying to tell me that pent-up demand for housing will drive recovery, and I’m sort of clinging to that. Maybe he’s right. But it remains the case that it takes money to buy a new house, no matter how pent-up your own personal demand is, and I don’t know where that’s going to come from. Last week a friend of mine finally gave up on keeping the mobile home she bought a few years ago. She just flatly can’t find a job, so she’s selling it (she hopes) and moving in with her sister. That has to stop happening before housing can recover, and so far I’m not sure it’s stopping.

I guess 9% unemployment is the new normal. Given our current unwillingness to do anything about it, I wouldn’t be surprised to see us stay at this level for two or three more years. Maybe longer. Maybe a lot longer.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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