Recession or Reorder? Reorder

An article in the New York Times seemed to echo discussion on these pages about a significant shift in the economy, the type of work we do and the kind of goods and services we buy. The Times says that the dramatic rise in jobless in the US shows that there will be a “vast” remaking of the US economy which will require the retraining of a large chunk of the workforce:

This dynamic has proved true in past recessions as well, with fading industries pushed to the brink during downturns before others emerged to create jobs when economic growth inevitably resumed. But with job losses so enormous over such a short period of time, some economists argue that the latest crisis challenges the traditional American response to hard times.

For decades, the government has reacted to downturns by handing out temporary unemployment insurance checks, relying upon the resumption of economic growth to restore the jobs lost. This time, the government needs to place a greater emphasis on retraining workers for other careers, these economists say.

When you think about the companies that are closing – how many of them do you think, ‘that was a great company , how unlucky’? Most of the companies in trouble had so-so products, so-so service – and even the best of these were only ‘good enough’. We should remember that many of the powerful companies that we know of today rose in the 30s despite the Depression. What good change may we see come out of today’s struggles?

New York Times: Job Losses Hint at Vast Remaking of Economy

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