The U.S. isn’t broke, and the dollar isn’t in danger of collapse even after unprecedented stimulus measures enacted following the worst financial crisis since the Great Depression, according to Capital Economics Ltd.
Amy Valle is caught in a labor- market recovery that’s forcing some Americans to settle for less. Before she lost her job as a full-time health-department case worker last November, she was making $23 an hour. Now she’s paid $10 an hour as a part-time assistant coordinator in an after-school program.
The U.S. economy’s anemic rebound from the worst recession in six decades is pummeling workers while leaving bosses almost unscathed and neither President Barack Obama nor Republican challenger Mitt Romney is captivating these disaffected voters five months before the national election.
The biggest U.S. banks including JPMorgan Chase & Co. and Citigroup Inc. are lending the smallest portion of their deposits in five years as cash floods in from savers and a slow economy damps demand from borrowers.
Tom Donohue, the president of the U.S. Chamber of Commerce, last week said higher taxes and a “flood of new regulations” will damage an already subpar economy. “In many ways, we’re going backwards,” he said.