From “In Shovels, A Remedy For Jobs And Growth,” Eduardo Porter, NYT:
“At the end of last year, according to the nonpartisan Congressional Budget Office, the economy was still about 5.5 percent smaller than it would have been had it avoided the recession and kept growing along its long-term potential path, making full use of the workers and equipment currently sitting idle. … By the time we recover to our potential – which the C.B.O. expects will take until 2017 – the Great Recession set off by the implosion of the housing bubble more than five years ago will have cost us nearly half of one year’s entire economic production: about $7.5 trillion.
“We will be paying the price for years. The slump is hindering capital investment, stunting the careers of college graduates and encouraging workers to drop out of the labor force….” Emphasis added.
Every time I hear some Republican apoplectic about the debt we’re placing on our kids and the high taxes they will have to pay, I think of my own Millenial son who does not have a job commensurate with his education and is not on the career path he should be. I believe his earnings and achievements will be adversely affected for the rest of his life. I’m sure he would much, much rather pay higher taxes down the road on an income higher than what now seems in store for him. It’s not just the loss of money that’s so sad, it’s the loss of career satisfaction as well.