(You're browser does not support Cascading Style Sheets (CSS), the web standard used to format this web page. To see a full-format version of this web page, you will need to upgrade to a newer version of your browser. Or, download the most recent version of the Firefox browser at www.Mozilla.org.)
Home | Publications | Links | Archive | Contact Me

Archive: December 2009

One Trillion Dollars

Dean Baker and I have a short new paper out today that puts the cost of the Great Recession at more than $1 trillion in lost wages and salaries. The scariest part is that the losses so far in 2008 and 2009 are less than one-third of the total losses through 2012. According to our estimates --which take into account the effects of the economic stimulus plan passed early this year-- earnings losses next year will be about 25 percent bigger than they were this year; 2011 will also be a bit worse than 2009 has been.

Bar graph showing wage and salary cost of Great Recession

Nothing that a massive commitment to job creation couldn't solve, but there doesn't seem to be much of a political consensus on this. Let's hope today's White House Jobs Summit helps to focus some minds.

UPDATE: 05/08/2010: A version of the paper is in the March-April edition of Challenge magazine.