Earlier this month, Washington Post blogger Ezra Klein reviewed the long-term impact of unemployment, and it's not pretty: apart from the immediate effects, there are long-term consequences for one's career, health, etc. None of this should be surprising, but it means that one of the consequences of the Lesser Depression* is a set of nasty cohort effects for those who are currently young adults and those in the decade or so before usual retirement ages (i.e., the unemployed aged 18-25 and 55-67). The extent to which this also spills over into cohort efforts for young children (under 5 currently) depends on the children's health-insurance policy in different states, both Medicaid and SCHIP.
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Your “Lesser Depression” is cute, but I learned enough history in HS to prefer “The Real Estate Depression of ’08”. Most depressions of the late 1800s were named by the bubble that they resulted from. At least, that is what I was taught back in the day.
Imagine if Pres Obama had said “still recovering from the Real Estate driven Depression of ’08” in his speech Monday night rather than incorrectly referring to it as a recession.
“Lesser Depression” is Krugman’s phrase, riffing off “Great Depression.”
This topic run as an Op-Ed in the WSJ July 1 under the banner: “The Jobless Summer,” complete with a graph plunging to 24% (ages 16-19) now, from a range of between 45% to 37% since WW II.
Even earlier was Joe Light, “Many Graduates Delay Job Searches,” WSJ 6/4-5/2011 A4. (also with excellent graphs).
This last paragraph was dropped by the print version: “Last year Mr. Blanchflower conducted a study that found 16 to 24-year-olds who don’t have jobs or aren’t in school are more likely to be anxious, depressed and suicidal than their counterparts who are students or working. ‘In recessions,’ Mr. Blanchflower [Dartmouth] said, ‘everyone moves down the occupational ladder, and young people get pushed out at the bottom.'”
But squashed first-rungers cannot get that all-important first job, and consequently cannot ride the career escalator up, and thus miss out entiurely on the college premium.