N.C. economists predict more tough times ahead

Posted September 3, 2010


— Continuing bleak news about the U.S. economy with report after report showing little or no growth has many people talking about a “double dip” recession rather than a recovery.

More bad news came Friday when the federal government released unemployment figures for August.

Unemployment rate is 16.7% under fed’s broader measure

The unemployment rate rose in August for the first time in four months as weak hiring by private employers wasn’t enough to keep pace with a large increase in the number of people looking for work.

The Labor Department says companies added a net total 67,000 new jobs last month, down from July’s upwardly revised total of 107,000. Wall Street analysts expected a smaller gain, according to Thomson Reuters.

Meanwhile, the U.S. Gross Domestic Product is struggling to maintain any growth at all – the most recent quarter having been downgraded to 1.6 percent.

Local Tech Wire and reached out to three prominent economists and business experts at Duke, North Carolina State and East Carolina universities to provide a better perspective about what is happening across the economy and what is likely to happen in the future.

They shared many similar thoughts – few of which are positive.

Michael Munger of Duke warns that the U.S. could repeat the 1936 debacle when attempts to escape the Great Depression faltered.

Michael Walden at N.C. State says the economy has “downshifted” and sees ”puny growth.”

James Kleckley of ECU, meanwhile, is concerned about the strength of the recovery, but said he is even more worried about long-term problems, especially in public policy.

The consensus of the three is that there are tough times now and will be more tough times ahead.


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  • Cricket at the lake Sep 3, 2010

    Google and read the Founding Documents: America's Constitution and The Declaration of Independence are brief, well written, inspiring, and easy to understand. It will help you understand that the people in Congress are no smarter than you and I, they just want you to be trained to turn to them for any and every thing you need, totally contrary to why this country was formed. They want to "redistribute" - buzz word like common good - the money circulating in the country, basically to buy votes with the citizen's tax money. Atlas Shrugged is another good read that explains what happens in a socialist society. Amber, sorry if I sounded mean.

  • harmstrong4 Sep 3, 2010

    just spent 3 hours at ESC listening to someone tell me to make sure I have a nice Resume to hand out at job fairs. lol

  • ambernicole919 Sep 3, 2010

    So apparently Cricket at the Lake I am not the only Brainwashed person since you and your husband feel some sort of way about people in America. Again you think the majority of the unemployed don't mind being that way. I know plenty of people who don't recieve unemployment and can't seem to find work and are not on any government programs but just want someone to give them a chance but I guess thats too much in your eyes

  • ambernicole919 Sep 3, 2010

    Cricket at the lake: Do you have anything interesting to say?

  • Cricket at the lake Sep 3, 2010

    Vote in November before the ratio of those that want to work and provide for themselves are overwhelmed by those that feel they deserve a share of all that everyone else has worked for.

  • Cricket at the lake Sep 3, 2010

    ambernicole, you are brainwashed to use the term "greater good" and I suspect that you don't even know it.

  • Keepin_it_real_in_NC Sep 3, 2010

    How's that hope and change working out for y'all.

  • Cricket at the lake Sep 3, 2010

    The biggest joke was Obama saying this week that now that the war is over in Iraq, he could concentrate on the economy. My husband said, "PLEASE DON"T!"

  • ambernicole919 Sep 3, 2010

    THINKCHICK: Arent most those places doing so good comminists?? hummmm that should give you more to think about are government would really do a 180

  • Bill Brasky Sep 3, 2010

    Hmmm, Thinkchick...aren't most of those countries, if not socialist, a lot more socialist then us? lol