Economic Outlook for 2010 from ERI Economic Research Institute

ERI’s (Economic Research Institute) view is that the US is at the bottom of an L-shaped recovery and, when job losses stop, a sustainable, not “dig a hole, fill a hole,” slow economic recovery will occur under a heavy social burden.

SSA DI (early retirement) rolls are above 10% of the working age populace (only 12,000/year return to work); unemployment is also above 10%; welfare payment values (including health care coverage) are higher than competitive unskilled wages (discouraging the pursuit of employment); minimum wage rates are rising
substantially (without inflation, there are only so many employer dollars for payrolls); health care costs rise unabated; and neighboring countries’ workers are flooding into America’s lower paid jobs.

Contrarily, ERI has received few bankruptcy notices from subscribers. Most organizations have cut staff, reduced payrolls, and managed revenue downturns in very prudent manners. The results are slimmed down and potentially more profitable entities poised for an economic turnaround.

For more info from ERI visit: http://www.erieri.com