Return of the 'growth recession'

That's what Bank of America economists are forecasting for the fourth quarter and into 2011. They happen when the economy continues to grow but not strongly enough to generate significant numbers of jobs (aka a "jobless recovery"). The last time the nation had a growth recession was in 2002 and 2003 (though some economists argue that much of the decade was mired in minimal hiring). These things are insidious because they leave the economy is a sort of no-man's land - not weak enough to collect enough support for additional government stimulus, but not strong enough to bring down the unemployment rate. Growth recessions leave policymakers at an impasse. B of A expects the economy to grow at an anemic 1.8 percent pace next year.


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook