Thanks to Regulatory Burdens, We've Got Both A Creditless Recovery and A Jobless Recovery
We had "jobless recoveries" after the 1990-1991 and 2001 recessions, but they were mild compared to the current "jobless recovery" of 2009-2011. At the current rate of private job creation over the last year, about 141,000 jobs per month, it will still take roughly four more years just to replace the jobs lost during the recession. When you also consider the addition of millions of new entrants every year into the labor market, it will likely be even longer before the U.S. labor market ever approaches anything close to full employment again.
Why is this jobless recovery so much worse than the last two?
Maybe it has something to do with a serious deficiency in the amount of credit being created, which is contributing to a "creditless recovery"? The chart above illustrates graphically the current “creditless recovery” by displaying the quarterly ratio of total credit market borrowing to GDP back to 1952. Despite some improvements over the last year, the amount of credit available in the economy in relation to the size of the economy (GDP) remains at a critically low level, less than half of the historical average.
Read more here at the Enterprise Blog.