Welcome to the New Normal

Chicago Federal Reserve Bank President Charles Evans stated that policy-makers may in the past have considered a jobless rate of around 4.75 percent to be full employment. Lingering labor market problems stemming from the deep recession may have pushed up that longer-term rate to the vicinity 5.25%

With all due respect to Charles Evans, I am not buying 5.25%. With the unfunded entitlement debt bomb, a new health care entitlement, and the continued growth of government I see a nation with Eurosclerosis.

Translation: Slow, anemic growth and a permanent unemployment rate at close to 10%.

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