…but something’s not sizing up here:
That won’t be enough to significantly reduce the unemployment rate, now 10 percent. In fact, most analysts expect the rate to keep rising for months and to remain close to 10 percent through year's end.
To drive down the jobless rate by just 1 percentage point this year, the economy would have to grow by 5 percent for the whole year. No one thinks that will happen.
So in order to wipe out unemployment, the nation’s GDP would have to increase by a rate of 50%? Give the fact that real unemployment is probably closer to 17%, this doesn’t exactly offer courage that the current recovery is anything but another binge on credit.
If you want to run an economy, read Hayek. If you want to salvage one, read Keynes… so goes popular theory.