This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

What to Expect Next: A Double Whammy of High Unemployment, Inflation

Stocks in this article: SBUXGOOGCWFM

NEW YORK (TheStreet) -- The economy is recovering from a harsh winter, and the pace of growth the rest of this year and next won't create nearly enough decent jobs for the millions unemployed and recent graduates working at places such as Starbucks (SBUX).

It's easy for President Obama to blame Republicans in Congress, and visa-versa, and for both sides to put their hopes in the Federal Reserve's stewardship of monetary policy, but decades of bad trade, energy and education policies pursued by both parties have torpedoed prosperity.

A succession of trade agreements has opened U.S. markets to foreign manufacturers in Asia, where governments continue to erect high barriers to competitive American products. Meanwhile, federal policies limit oil and gas development off the Atlantic, Pacific and Eastern Gulf Coasts.

Apple, IBM Just Made an Historic Announcement

Bob Evans' Weak Fiscal Year Means an Activist Overhaul, Possible Spinoffs

Intel Soars: What Wall Street Thinks

The United States has chosen to pay its way in the world with exports of knowledge-intensive services, but the math doesn't work. The annual international trade deficit on manufacturers and oil is about $615 billion, whereas the surplus on services is well less than half that amount.

Knowledge-intensive juggernauts such as Google (GOOG) and Citigroup (C) create high-paying jobs in science based disciplines and finance. And the U.S. still has notable knowledge-intensive manufacturers in industries such as pharmaceuticals. But jobs in those areas don't spur enough growth to compensate for the numbers of high-quality jobs lost to the surge of imported cars, coffee tables and computers.

Since the beginning of this century, the economy has grown 1.7% annually and has created only 6 million jobs, compared with 3.4% growth and 41 million jobs during the prosperous Clinton-Reagan years.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs