Three years after the beginning of the Great Recession, the US unemployment rate remains at 9%, double its pre-crisis level. This column suggests the credit crunch may be behind this high number. It argues this is not because lower debt impairs the hiring ability of firms, but because it places firms in a less favourable bargaining position, allowing workers to negotiate higher wages, and thus reducing employment.
Firms’ deleverage and the persistence of unemployment by Tommaso Monacelli, Vincenzo Quadrini, Antonella Trigari at Vox.eu
Dumb, dumb, and dumber.
It's the demand, stupid.