US Underperforming
World Economy

US Underperforming

After riots broke out in Baltimore in April, the son of the owner of the Orioles baseball team famously lamented the loss of middle-class jobs that “plunged millions of good, hard-working Americans into economic devastation.”
The lack of good jobs did not light the bonfire of violence. The funeral of a 25-year-old black man who died in the custody of police was the spark. Yet the unrest was also fueled by the simmering frustration of many Americans who still cannot find decent jobs six years after the end of the worst economic calamity in the US since the Great Depression, MarketWatch reported.
While some graduates from the nation’s most prestigious universities still have trouble finding good-paying work, the problem is especially acute for young people who lack degrees or never finished high school, especially African-Americans. And even many millennials who have gotten jobs are starting out at lower salaries compared to previous generations or find themselves stuck in positions that don’t even require a degree.
The plight of young people helps explain why the economy continues to underperform as it enters the seventh year of a recovery. The last time the US has grown 3% annually — the historic average is 3.3% — was a decade ago.
Millennials are more frugal than their parents, live longer at home after they get out of school, get married less, have fewer kids and are less apt to buy big-ticket items such as cars or homes. Large student debts for many of them add to the burden.
“That’s a big reason why we are locked into this modest-growth world,” said Scott Wren, senior global equity strategist at Wells Fargo Investment Institute in St. Louis. “A lot of these people need a halfway decent paying job.”
Although a big surge in hiring nationwide since 2014 has made it easier for young people to obtain jobs and form families, the labor market continues to shut out millions of Americans. Unless more work and attractive job opportunities become available to them, the economy could underperform for years to come.

Short URL : http://goo.gl/mDeaWg

You can also read ...

China Challenges US Solar Panel Duties
China says it is challenging a US tariff hike on solar panels...
In a retaliatory move, President Recep Tayyip Erdogan’s government on Wednesday announced higher tariffs on some US imports, namely on passenger cars (120%) and leaf tobacco (60%).
Turkey has raised tariffs on some US imports, including...
World trade volume growth peaked in January at almost 5.7% year-on-year but nearly halved to less than 3% by May.
Cyclical indicators point to slower and more uneven growth in...
Moody’s Predicts Slower Fiscal Progress in S. Africa
South Africa’s fiscal consolidation will be slower than the...
Nigeria CPI Drops to 11.14 Percent
Nigeria’s National Bureau of Statistics says the consumer...
File picture of Kim Jong-un (L) and Moon Jae-in at the truce village  of Panmunjom, South Korea.
South Korea President Moon Jae-in on Wednesday offered a bold...
Surging Inflation Mars Philippines Growth
The Philippine economy in 2018 is a story that can be summed...
Transport tickets and fuel have driven up costs for consumers.
Inflation in the UK climbed in the month of the July, as had...