Tuesday, 17 April 2012
Recovery US since 2009 this time different
The two charts of benderly (Applied Global Macro Research nowadays) show that goods have recovered as should have happened after a deep recession (manufacturing base in the US is coming back), while the service sector is doing way worse than ever after a recovery. Normally services are growing fast and take an ever bigger part of GDP.
This time was different. Productivity growth is hurting civil servants and maybe some other jobs in the service sector. That is quite unusual (productivity growth is only measured for the private sector, the productivity growth of the government is by definition 0; this definition should be changed).