{"60737":{"#nid":"60737","#data":{"type":"news","title":"Boston Sees New Period of Economic Austerity","body":[{"value":"\u003Cp\u003EIvan Allen College Economics Professor Thomas \u0022Danny\u0022 Boston told CNN\u0027s Tony Harris that the U.S. is entering a new period of economic austerity that will affect large sectors of the workforce and redefine what is considered full employment. \u003C\/p\u003E\n\u003Cp\u003EIn the interview July 2 on CNN\u2019s Tony Harris Show, Boston was asked about the June jobs report which shows a net loss of 125,000.\n\u003C\/p\u003E\n\u003Cp\u003E\u201cThere\u2019s not much to be excited about in this job report.  The numbers just don\u2019t look good.  For growth, we need about twice the 83,000 jobs we saw added in the private sector in June.\u201d\n\u003C\/p\u003E\n\u003Cp\u003E\u201cIn part what we\u2019re struggling with the long term consequences of the globalization of the economy.  A lot of the unemployment that we see right now would actually be there even if we did not have this financial meltdown.  Major corporations, mid and small size businesses are in need of an adjustment and they\u2019ve taken the opportunity of the financial meltdown to make the adjustment to displace millions of workers that they have no intention of bringing back on board.  Most of those businesses - and I\u2019ve interviewed many of the CEOs - they say that even when things turn around they\u2019re still going to go with the workforce they have and supplement that with new forms of technology that can allow them to produce\u2026 so where 5% was considered full employment, we\u2019re going  to see 7% as the low end of full employment, at least for the next couple of years.\u201d\n\u003C\/p\u003E\n\u003Cp\u003E\u201cBut, I don\u2019t want to paint a picture of total gloom and doom.  Things will turn around.  One of the good things that\u2019s happening in the economy is that we see an acceleration in the rate of productivity and in new investment, particularly in technology, and those things ultimately have spinoffs that create new jobs, but it takes time for those things to work through the economy.\u201d  \n\u003C\/p\u003E\n\u003Cp\u003E\u0022A month, two months ago the economy was braced for a recovery that was more robust than people had predicted.  Then all of a sudden at the beginning of May we seem to have run into a brick wall.  We saw a precipitous decline in consumer confidence and business confidence.  And a lot of this is brought on by the shocks we\u2019ve had to the economy where the normal pattern of spending  and investing doesn\u2019t occur.  One of the shocks creating a lot of uncertainty is the persistent European debt crisis.  Another one is the gulf oil spill.   Those things added together create a kind of pessimism in terms of outlook which is not conducive to growth.\u0022  \n\u003C\/p\u003E\n\u003Cp\u003E\u0022Long term, it\u2019s going to be a real struggle. We are entering a new period of austerity and it\u2019s going to affect large sectors of the workforce.   One part of the President\u2019s plan was to invest more in green technology and we have to invest in education.  Those kinds of things will allow us to position the workforce for the new environment and short of that we\u2019ll have these kinds of persistent kinds of both social and economic problems.\u0022 \n\u003C\/p\u003E\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EIvan Allen College Economics Professor Thomas \u0022Danny\u0022 Boston told CNN\u0027s Tony Harris that the U.S. is entering a new period of economic austerity that will affect large sectors of the workforce and redefine what is considered full employment.\u003C\/p\u003E","format":"limited_html"}],"field_summary_sentence":[{"value":"Commentary on CNN\u0027s July 2nd Tony Harris Show"}],"uid":"27167","created_gmt":"2010-07-06 00:00:00","changed_gmt":"2016-10-08 03:07:19","author":"Rebecca Keane","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2010-07-06T00:00:00-04:00","iso_date":"2010-07-06T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"hg_media":{"60738":{"id":"60738","type":"image","title":"Dr. Thomas \u0022Danny\u0022 Boston","body":null,"created":"1449176296","gmt_created":"2015-12-03 20:58:16","changed":"1475894528","gmt_changed":"2016-10-08 02:42:08","alt":"Dr. Thomas \u0022Danny\u0022 Boston","file":{"fid":"191202","name":"tjy30533.jpg","image_path":"\/sites\/default\/files\/images\/tjy30533_0.jpg","image_full_path":"http:\/\/hg.gatech.edu\/\/sites\/default\/files\/images\/tjy30533_0.jpg","mime":"image\/jpeg","size":42429,"path_740":"http:\/\/hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/images\/tjy30533_0.jpg?itok=MRXuFIKE"}}},"media_ids":["60738"],"related_links":[{"url":"http:\/\/www.econ.gatech.edu\/people\/faculty\/boston","title":"Danny Boston"},{"url":"http:\/\/econ.gatech.edu\/","title":"School of Economics"}],"groups":[{"id":"1281","name":"Ivan Allen College of Liberal Arts"}],"categories":[{"id":"129","name":"Institute and Campus"},{"id":"134","name":"Student and Faculty"},{"id":"135","name":"Research"}],"keywords":[{"id":"1880","name":"Boston"},{"id":"602","name":"economics"},{"id":"290","name":"Economy"},{"id":"3053","name":"financial"},{"id":"7668","name":"workforce"}],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003E\u003Cstrong\u003ERebecca Keane\u003C\/strong\u003E\u003Cbr \/\u003EIvan Allen College of Liberal Arts\u003Cbr \/\u003E\u003Ca href=\u0022http:\/\/www.gatech.edu\/contact\/index.html?id=rkeane3\u0022\u003EContact Rebecca Keane\u003C\/a\u003E\u003Cbr \/\u003E\u003Cstrong\u003E404-894-1720\u003C\/strong\u003E\u003C\/p\u003E","format":"limited_html"}],"email":["rebecca.keane@iac.gatech.edu"],"slides":[],"orientation":[],"userdata":""}}}