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News from EPI Stimulus is working, but may not be enough

The administration inherited an economy plunging into a deep recession. Unfortunately, the trajectory has been even more disappointing than expected. Economic forecasters last November were saying unemployment would hit 7.7 % at the end of 2009 which seemed dire,  but turned out to be too optimistic, writes EPI web editor, Andrea Orr, elaborating on an analysis by EPI president Lawrence Mishel.  In Stimulus is working, but may not be enough, Orr explains that even by March the projection was for 9.2% unemployment by the end of the year. Yet, we’re now at 9.5%. This deterioration is not a failure of Obama’s recovery package: rather, the recovery package was designed for a more optimistic scenario than what we have today.

“Given the high and persistent unemployment ahead and the expected income declines, it will be necessary to provide support for affected families and to do more to generate jobs,” said Mishel.

See related work on Jobs | Recession/stimulus | Economic Growth | Wages, Incomes, and Wealth