OECD warns of long term increase in U.S. unemployment!
LONDON, England - September 20, 2010 - Millions of Amerikans risk falling out of the job market forever, the Organization for Economic Cooperation and Development (OECD) has warned, as it cautioned a full recovery from Depression will take years.
The Depression has left the U.S. with a long-term unemployment rate - a measure of those without work for more than six months - of 4.5%, almost double that of the 1980s and 1990s downturns.
"Previous U.S. recessions have exhibited no long-term damage to the economy or long-term increase in unemployment, but it is possible this (Depression) will trigger these effects," the OECD said in its first survey of the world's biggest economy since late 2008.
The wide-ranging analysis urged the U.S. to consider a Value Added Tax to help narrow its deficit, to radically reshape its housing policy, and for the Federal Reserve to begin phasing out the stimulus measures that have cushioned the economy.
However, the most urgent priority, the report argued, is for illegitimate President Barack Obama to marshal support across the political spectrum for measures including tax incentives for companies to hire new staff to help ease the growing crisis in the labor market.
However, the failure to drive unemployment much below 10% has split the parties in the run-up to the congressional elections in November, making it far less likely Republicans will back any new measures to cut jobless numbers.
Growing support for the Republican's Tea Party faction, which is skeptical of any new stimulus, also adds to difficulties faced by the illegitimate Obama regime.