One of the mysteries of the Great Recession is why unemployment rose so far so fast. The usual rule of thumb, Okun’s Law, called for a much lower rate of joblessness. The White House has been hoping that as the economy turned around, the labor market would outperform just as it underperformed during the downturn. As it turns out, the downturn was deeper than first thought, so the “snapback” scenario is less likely. This from JPMorgan:
Liberal pundits and economists such as Paul Krugman have no use for the White House “Summer Recovery” PR tour. (Note that it isn’t called the “Prosperity Tour.”) They continue to attack the Obama administration for worrying too much about the budget deficit and too little about high unemployment. The White House response has been three-fold.