Bernanke: ‘Significant Amount of Time’ Before Jobs Return
This morning, Federal Reserve Chairman Ben Bernanke testified before Congress on the condition of the economy. His comments were generally positive, but he
Jul 31, 2020131.7K Shares4.8M Views
This morning, Federal Reserve Chairman Ben Bernanke testifiedbefore Congress on the condition of the economy. His comments were generally positive, but he cited serious concerns with the labor market and said it will take a “significant amount of time” before the 8.5 million jobs lost in the recession return.
“„I am particularly concerned about the fact that, in March, 44 percent of the unemployed had been without a job for six months or more. Long periods without work erode individuals’ skills and hurt future employment prospects. Younger workers may be particularly adversely affected if a weak labor market prevents them from finding a first job or from gaining important work experience.
After that statement, Bernanke turned to other matters. The Fed, despite the protestationsof economists such as Joe Gagnon, has signaled that it will not do more to combat unemployment. That leaves the action to Congress, where thankfully there are a number of proposals to combat high rates and long spells of joblessness, and their side-effects.
A good plan is Rep. George Miller’s (D-Calif.); his Local Jobs for America Actwould provide $75 billion over two years to states to boost hiring. (Several members of the House pushedfor the bill today.) Another is the continued extension of unemployment benefitsas a stopgap measure. Speaking against a temporary one-month bill on the Senate floor this morning, Sen. George LeMieux (R-Fla.) argued that the benefits are non-emergency and therefore should be pay-go: “Has it been unforeseen that we were going to have to extend unemployment compensation?…Of course it is not. We knew that we were going to have to do this, but there is an unwillingness in this Congress to pay for things.” Economist Mark Zandi countered by saying that not passing benefits would be “counterproductive” and that benefits shouldbe paid for later in the economic upswing.
Dexter Cooke
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Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide.
He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina.
Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations.
As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all.
Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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