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Media

24/7 Wall St. TV: Double Digit Unemployment

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By Douglas A. McIntyre Updated Published
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24/7 WallSt TVThe recent report on global unemployment from the OECD predicted that developed country joblessness will reach post WW-II highs soon and will not improve much  over the next two years.

Now, Noble Prize winner Paul Krugman has predicted that US unemployment will not peak until 2011. Speaking in Slovenia, Krugman said, “(U.S.) unemployment will peak in early 2011 … certainly staying very high and possibly rising all next year.”

[youtube=http://www.youtube.com/watch?v=6VilWv34OGY&w=560&h=340&fmt=18]

The current assumptions baked into the Budget and stimulus package are that unemployment will stay below 10% and will recover fairly rapidly after the recession ends, which should be during the current quarter. Most signs point to these forecasts as being much too optimistic. That means that tax receipts will be below forecasts and the deficit will rise more than expected. It also means that the engine of GDP growth, consumer spending, will not rebound at any point in the foreseeable future.

All that being said, the drag of the jobless will pull the economy back under.

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Executive Producer: Philip MacDonald

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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