In the two years since Lehman Brothers was allowed to fail, there have been numerous books on the causes of the financial crisis. The housing boom and subsequent collapse is understandably at the epicenter of most of the books. Depending on the political persuasion of the author, the emphasis is that conservatives or liberals deserve more blame for the following reasons. What typically follows is a narrative of political bias. The fact is that both views have it partially right. However, at the end of the day, what is more important is that a number of contributing factors are worse now than before the crisis.
We may never be able to regain the per capita employment levels that existed before the Great Recession.
In 2010, increasing health care costs do not appear to be a significant factor in hiring decisions be employers. Employers are essentially transferring increased costs to employee contributions.
ADP employment report for August 2010 shows a 10,000 month over month loss. The problem is that the economy is not creating jobs. Various data points indicate that goods production is increasing yet goods producing jobs are being lost.
Demographics favor rapid growth in India as more than half of the population is under age 25. However, managing sufficient growth to develop this demographic dividend without employment shortfalls that might possibly lead to social unrest could be a challenge.