The United States economy is trapped in a Depression, says Ambrose Evans-Pritchard, international business editor for the London Telegraph.
“Let us be honest. The U.S. is still trapped in Depression a full 18 months into zero interest rates, quantitative easing and fiscal stimulus that has pushed the budget deficit above 10 percent of GDP,” Evans-Pritchard wrote.
The share of the working-age population with jobs fell to 58.5 percent in June, down from 63 percent three years ago, he notes. That means 8 million jobs have been lost.
“This is the real stress indicator,” Evans-Pritchard maintains.
"Legions of individuals have been left with stale skills and little prospect of finding meaningful work,” Jeff Weniger, of Harris Private Bank told Evans-Pritchard.
Former Labor Secretary Robert Reich also has a bleak view. "The economy is still in the gravitational pull of the Great Recession," he told Evans-Pritchard.
“All the booster rockets for getting us beyond it are failing. Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year. So what are we doing about it? Less than nothing."
Star economist Nouriel Roubini is bearish on the U.S. economy too, though less so than Evans-Pritchard. He predicted to CNBC that U.S. growth will slow to 1.5 percent.
Still, "you don't need to have a double-dip recession to have a situation that is dismal," Roubini said.
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