Anemic Recovery

Following recessions this severe, economic recoveries are usually quite robust. But not this time. Why? Chronic lack of credit kills sales, depresses investment, and hurts productivity. Prolonged levels of high unemployment erode worker skills, making it hard for the unemployed to find work, shrinking the labor-force. Most importantly, crises stunt innovation, R&D, and the efficiency with which capital and labor are used which stunts growth.

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