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Why Jobs Lag the Economic Recovery

Matt Davies
© Matt Davies

This comic is the one of the clearest explanations of why in every recession we have ever had, the unemployment rate remain high for years after the economy starts improving. Employers will only start thinking about hiring after they are sure they will have the revenues to pay those workers. After all, running out of money to pay your workers is one of the easiest ways to end up with a bankrupt company.

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2 Comments

  1. Hugo wrote:

    What a economical failure.

    The USA needs people to stop consuming and save more, so the money goes to investment instead of going to consumption. Its not like the only option with money is consumption. We can use it to invest and make our life better.

    Tuesday, December 8, 2009 at 4:15 am | Permalink
  2. Sammy wrote:

    But during an Obama administration conservatives will call it a jobless recovery. That above cartoon would only be allowed during a Republican administration. Ah, hypocrisy.

    Tuesday, December 8, 2009 at 12:27 pm | Permalink