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Divided We Stand

Divided We Stand
New book about the 2020 election.

Monday, February 1, 2010


Douglas Elmendorf, head of the Congressional Budget Office, delivered some decidedly mixed news last week. In testimony before the Senate Budget Committee, he said:
Hiring usually lags behind output during the initial stages of a recovery because firms tend to increase output first by boosting productivity and by raising the number of hours that existing employees work; adding employees tends to occur later. CBO expects that the unemployment rate will average slightly above 10 percent in the first half of 2010 and then turn downward in the second half of the year. As the economy expands further, the rate of unemployment is projected to continue declining until, in 2016, it reaches 5 percent, which is equal to CBO’s estimate of the rate of unemployment consistent with the usual rate of job turnover in U.S. labor markets.
CBO expects unemployment to average 10.1 percent for calendar 2010, 9.5 percent in calendar 2011 -- not good for Democratic electoral prospects.