Changes

The [[Congressional Budget Office]] reports the GDP output gap (the difference between actual GDP and potential GDP if all labor and [[capital]] were fully employed) is about 6.5 per cent, and economic growth for the next few years [http://www.cbo.gov/ftpdocs/108xx/doc10871/Summary.shtml "will probably be muted.]" The US economy has no recent experience of living with an output gap of anywhere near this level.

The [[Congressional Budget Office]] reports the GDP output gap (the difference between actual GDP and potential GDP if all labor and [[capital]] were fully employed) is about 6.5 per cent, and economic growth for the next few years [http://www.cbo.gov/ftpdocs/108xx/doc10871/Summary.shtml "will probably be muted.]" The US economy has no recent experience of living with an output gap of anywhere near this level.

[[File:Output Gap Q2 2010.JPG|200px|right|thumb|The Output Gap]]

[[File:Output Gap Q2 2010.JPG|200px|right|thumb|The Output Gap]][[File:Workforce_participation.JPG|200px|right|thumb|Declining Workforce participation: a way to hide real [[Unemployment]].]]

'''The Output Gap:''' a reflection of actual vs potential output. The U.S. economy is operating 6.5% below its productive capacity. At 1% growth, it will take the better part of a decade to return 10% of the workforce to employment, barring no other unforseen disasters.  The two Stimulus packages, since the Democrats took control of Congress in January 2007, represent an incredible waste of precious resources which could have been used to foster job creation rather than add to a colossal foreign debt.

'''The Output Gap:''' a reflection of actual vs potential output. The U.S. economy is operating 6.5% below its productive capacity. At 1% growth, it will take the better part of a decade to return 10% of the workforce to employment, barring no other unforseen disasters.  The two Stimulus packages, since the Democrats took control of Congress in January 2007, represent an incredible waste of precious resources which could have been used to foster job creation rather than add to a colossal foreign debt.

The original term [[Keynesian]] [[New Deal]]ers used for the unemployed was "[[New_Deal#Double_dip_recession|wastage]]."

The original term [[Keynesian]] [[New Deal]]ers used for the unemployed was "[[New_Deal#Double_dip_recession|wastage]]."

Another factor affecting the Output Gap since the '''[[110th Congress|Pelosi/Reid Congress]]''' took office is the reported decline in Workforce participation.<br>

Another factor affecting the Output Gap since the '''[[110th Congress|Pelosi/Reid Congress]]''' took office is the reported decline in Workforce participation.<br>

Workforce participation constitutes the total number of eligible working age adults. Some workers (women who drop out of the workforce for child rearing purposes, or seniors who work to remain active rather because they need the money, for example) in the adult population are dicounted, or deemed 'ineligible' to work to arrive at the base number from which '''[[Unemployment]]''' number is calculated. Prior to the recession, more than 66% of working age adults were considered to makeup the workforce. Nearly two full percentage points, or 3,000,000 workers have been shaved off the statisitcs by government number crunchers, to arrive at the base number used to calculated a 9.6% Unemployment figure. If those three million eligible workers were addded back in, the 15,000,000 unemployed figure would swell to 18,000,000 (each one percent unemployment percentage point represents roughly 1.5 million people).

Workforce participation constitutes the total number of eligible working age adults. Some workers (women who drop out of the workforce for child rearing purposes, or seniors who work to remain active rather because they need the money, for example) in the adult population are dicounted, or deemed 'ineligible' to work to arrive at the base number from which '''[[Unemployment]]''' number is calculated. Prior to the recession, more than 66% of working age adults were considered to makeup the workforce. Nearly two full percentage points, or 3,000,000 workers have been shaved off the statisitcs by government number crunchers, to arrive at the base number used to calculated a 9.6% Unemployment figure. If those three million eligible workers were addded back in, the 15,000,000 unemployed figure would swell to 18,000,000 (each one percent unemployment percentage point represents roughly 1.5 million people).

[[File:Average weekly hours.JPG|200px|right|thumb|Workers suffered smaller paychecks during FRecovery Summer.]]

[[File:Average weekly hours.JPG|200px|right|thumb|Workers suffered smaller paychecks during FRecovery Summer.]]