Eurozone GDP still hasn’t gotten back to its 2007 level, and doesn’t look like it will anytime soon. Indeed, it already wasn’t clear if its last recession was even over before we found out the eurozone had stopped growing again in the second quarter. And not even Germany has been immune: its GDP just fell 0.2 percent from the previous quarter.
Matt O’Brien, Worse than the 1930s: Europe’s recession is really a depression, Washington Post, August 20, 2014. Web 9/5/2014.
Total nonfarm payroll employment increased by 142,000 in August … Manufacturing employment was unchanged in August, following an increase of 28,000 in July. Motor vehicles and parts lost 5,000 jobs in August, after adding 13,000 jobs in July. Auto manufacturers laid off fewer workers than usual for factory retooling in July, and fewer workers than usual were recalled in August. Elsewhere in manufacturing, there were job gains in August in computer and peripheral equipment (+3,000) and in nonmetallic mineral products (+3,000), and job losses in electronic instruments (-2,000).
Employment Situation Summary, U.S. Bureau of Labor Statistics, September 5, 2014. Web 9/5/2014.
Today’s report also included revisions to first-quarter personal income. Wages and salaries rose by $131.3 billion, revised down from an initially reported $135.1 billion gain. They climbed by $103.6 billion in the second quarter.
Shobhana Chandra, Economy in U.S. Expands 4.2%, More Than Previously Forecast, Bloomberg, August 28, 2014.
Almost 21 million people are victims of forced labour – 11.4 million women and girls and 9.5 million men and boys. … Almost 19 million victims are exploited by private individuals or enterprises and over 2 million by the state or rebel groups. … Forced labour in the private economy generates US$ 150 billion in illegal profits per year.
Facts and Figures, Forced labour, human trafficking and slavery, International Labour Organization, Web 9/5/2014.
Comparing the first half of 2014 with the first half of 2007 (the last period of reasonable labor market health before the Great Recession), hourly wages for the vast majority of American workers have been flat or falling. And even since 1979, the vast majority of American workers have seen their hourly wages stagnate or decline…
Elise Gould, Why America’s Workers Need Faster Wage Growth—And What We Can Do About It, Economic Policy Institute, August 27, 2014. Web 9/5/2014.
The U.S. is deeply tied to the rest of the world economy and the world economy is plagued by contradictory national economic policies, geopolitical instability, extreme weather conditions, and rising prices. These are chronic conditions that will continue to prevent the world economy from achieving a steady rate of economic growth high enough to grow jobs and incomes.
Slow economic growth combined with high levels of global income and wealth inequalities can only produce a steady stream of domestic and geopolitical disasters. Slow economic growth is probably a permanent feature of the 21st century world economy, so we have to learn to live with it. We can, however, do a lot to reduce economic inequalities.