The New Economic Normal?

Over at Memeorandum is a link to the blogsite of Harvard Professor Greg Mankiw.  In particular, there is a chart of the Civilian Employment-Population Ratio (EMRATIO).  The data is from the St Louis Federal Reserve Bank.

The Professor titles the chart "Monitoring the So-Called Recovery".  What it shows is that before the recession the EMRATIO hovered between 62% and 63%.  Now it is running, after the end of the recession, at between 58% and 59%.  So, who was hurt, and do we need corrective action, or is this the new normal and socially acceptable?  And what was the ratio in the 100 years between 1904 and 2003.

Research continues.

Regards  —  Cliff