Permanently Higher Unemployment Rates?

A Yahoo article titled Higher jobless rates could be new normal contains some sobering economic observations. The newer and higher unemployment rates could become economic fixtures. Unemployment rates of close to ten percent have becomes norms in countries where the public sector expands and the private sector contracts. That is what is taking place today in America.

The article points out some reasons for the pessimism. They include the crippling of the auto and construction industries which have been key components of past recoveries, problems small and mid-sized businesses have securing bank loans and cutbacks in consumer spending caused by huge financial investment losses.