October 4th, 2009
10:00 AM ET
13 years ago

Greenspan: Recovery in 3Q, but unemployment still rising

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/POLITICS/10/04/u.s.economy/art.greenspan.gi.jpg caption="Former Fed Chairman Alan Greenspan, shown here in 2008, says temporary actions can help the jobless."]
WASHINGTON (CNN) - The U.S. economy will grow more than expected in the third quarter, but unemployment also will continue to increase and "penetrate" the 10 percent barrier, former Federal Reserve Chairman Alan Greenspan said Sunday.

Greenspan told the ABC program "This Week" that he expected 3 percent growth in the third quarter, up from the 2.5 percent he previously predicted. However, he said a "pretty awful" September employment report released Friday showed the jobless rate continued to climb.

A slowing or halt in job losses is different than reversing the rise in unemployment, Greenspan noted, adding that the nation's unemployment rate - currently 9.8 percent - is "going to penetrate the 10 percent barrier before heading down."

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Filed under: Alan Greenspan • Economy
soundoff (60 Responses)
  1. Ryan indy

    Where is the 3 million new jobs by the END of the Summer Obama promised if we passed the Stimulus???? So he can make empty promises and nobody can call him on it. IF GW would have done this the Left and every newspaper would have this on the front page of the News everyday, but if Republicans call Obama on this , they are Racist. Sorry Republicans are not playing your childish games anymore, everytime Obama makes an empty promise he will be called on it, the democrats are really in for a reality check come the 2010 and 2012.

    October 4, 2009 11:35 am at 11:35 am |
  2. Bones

    Hey Scott Whitehill: Thanks for your remarks. You are right on the money. Yes other people can see that. It is the transfer of jobs to China is the root cause of our problem. Companies that have pulled factories out of the U.S. and plopped them down in China have no sense of responsibility to the to their own countrymen. So do companies that outsource overseas. All of this has become slick business acumen in their minds but they are too stupid to realize that if Americans don't have jobs, they can't buy anything. The fact that our government, for the last 30 years, has done nothing about this has finally come home. None of this administration's efforts have really dealt with this decisively. The previous three administrations have done nothing either. There is a hard rain a-gonna-fall. This "recession" is going to last a long time.

    October 4, 2009 11:44 am at 11:44 am |
  3. m jeff

    If the Republicans want to see an improvement in unemployment, tell them to stop sending jobs to China.

    October 4, 2009 11:48 am at 11:48 am |
  4. annie against biased news

    Wake up! If the jobless rate is growing then certainly the economy is NOT improving.

    October 4, 2009 11:49 am at 11:49 am |
  5. ROMNEY will fix the economy.

    Want real economic recovery ? ROMNEY 2012

    October 4, 2009 11:50 am at 11:50 am |
  6. Lilarose in Bandon, Oregon

    Our recession is not a one-hour TV show that most young people are expecting it to be with a wrap-up at the end of the show.

    Need a job? Why are you blogging? You should be "out there" preparing to find a job or actively searching.

    I have been through several recessions, and we didn't sit around whining about it.

    October 4, 2009 12:00 pm at 12:00 pm |
  7. evman

    I wish Greenspan would shut his trap, he's part of the reason we're in this mess. He's had his shot. Now move on, someone else is in charge.

    Why is it these guys know more when they LEAVE office, than when they're IN office ???

    October 4, 2009 12:01 pm at 12:01 pm |
  8. CM

    Just a question and this will probably be erased like a lot of my comments. Why is this all OB fault.? Do you remember the unemployment rate in 1996; who got blamed for that period of time. I remember, I was one of those who lost my job. I feel it , also, took this country 8 years to get in the mess that we are in; stop blaming and look for the truth and answers.

    October 4, 2009 12:03 pm at 12:03 pm |
  9. S Callahan

    Where oh where has honesty gone? Come on Greenspan you know the truth...tell it!

    October 4, 2009 12:07 pm at 12:07 pm |
  10. InlandEmperor

    Why would anyone care what Greenspan thinks? He managed to put us in this position with his catering to Bush and his cronies' special interest needs. Please allow this person to fade into oblivion.

    October 4, 2009 12:14 pm at 12:14 pm |
  11. Josh

    I love how quick some people are to blame this on Obama. This is the culmination of years and years of poor policy that reached a crescendo in the Bush Years - cutting taxes, gutting social safety nets, creating Third World income disparities. Europeans are weathering this storm much more successfully than we are and our current debate on healthcare, one had in more progressive nations 40 to 60 years ago, reflects how brainwashed so many people in this country are. You'd rather your children not have access to healthcare than have the government funded program ('cuz then we'd be like Russia'??). I make a lot of money and am willing to give up more in taxes to live in a sane society. That's why I moved to Canada five years ago. The economy sucks up here right now, too, but I can tell you, that people aren't forced from their homes or left to die of cancer because we're in a recession.

    October 4, 2009 12:15 pm at 12:15 pm |
  12. Mike, Syracuse, NY

    Obama: 'The stimulus will create 3 million jobs'
    Reality: Since being elected Obama has lost 3 million jobs.

    Obama: 'Unemployment will not increase above 8%'
    Reality: Unemployment at 9.8% and rising

    Do we really want to trust this man's promises on health care too?

    October 4, 2009 12:25 pm at 12:25 pm |
  13. Annie, Atlanta

    Facts, figures, recovery, unemployment, on and on. What the bottom line is, my fellow Americans, is that 1% of our citizens (the wealthiest) just keep taking from us, and they have the means to continue through the politicians they've bought. We need to get these politiciansout, every election cycle. Let's limit their terms on our own. Make sure they don't get embedded.

    And we need to pay very close attention to the people who want these jobs. There's a man running for governor right now who thinks women should neither work outside the home nor take birth control. Really? Do you think this guy will have your best interests at heart? Think people, Think! And pay attention. We may be able to take our government back if we do. Forget Dem or Repub. Don't vote with your heart. Vote with your mind. 99% of us have a vested interest in doing so, because we lose if we don't.

    October 4, 2009 12:28 pm at 12:28 pm |
  14. Julie

    Greenspan is the one who screwed up our Economy.

    Greenspan's ideas are outdated and obsolete.

    I am a lay person not an Economist, but here is what I have to say to boost our Economy:

    1. Export more than you Import. This will reduce the Trade Deficit..........
    2. Create Manufacturing Jobs. Don't buy everything made in China...........
    3. Protect our Industries, by imposing duty and import tax on items that we can easily manufacture in our Country..........
    4. Losing Manufacturing Jobs will have very drastic consequences in the future. Our Kids will become lazy, because they will just import rather than manufacture..........
    5. Avoid wars. Expenditure on wars will drain our finances...........

    I think as a Lay person, I can make more sense than this Idiot Greenspan.

    October 4, 2009 12:31 pm at 12:31 pm |
  15. Hugo

    I for one would like to see a redistribution of WEALTH of the political elitists in Washington DC. It could be a partisan redistribution solely based on their performance and bank accounts!

    October 4, 2009 12:34 pm at 12:34 pm |
  16. JJ

    No recovery with spending like this...

    The federal budget has gone from surplus to deficit during the past decade.

    Fiscal year Surplus or deficit
    2000 +$236 billion

    2001 +$128 billion

    2002 -$158 billion

    2003 -$378 billion

    2004 -$413 billion

    2005 -$318 billion

    2006 -$248 billion

    2007 -$161 billion

    2008 -$459 billion

    2009* -$1,841 trillion
    * Estimate
    Source: White House

    P.S. This is the Dems spending.

    http://www.usatoday.com/news/washington/2009-08-10-deficit_N.htm

    October 4, 2009 12:34 pm at 12:34 pm |
  17. Annie, Atlanta

    Mike, Syracuse NY. Did you ever stop to think that no matter who the President is this was going to happen? We're in financial meltdown. President Obama has been in office less than 9 months. How is any of this his fault right now? Stop pointing fingers, and let's try to come up with some solutions, instead. Work together, instead of against each other. Doesn't that make sense? Or do you just want half of us to hate the other half and let the whole experiment collapse? Is that what you want? I sure don't. Are we so divided we can never come together again?

    October 4, 2009 12:36 pm at 12:36 pm |
  18. Willy Brown

    WHy do we continue to let this old fool talk. If he wants the job then ask Obummer.

    October 4, 2009 12:42 pm at 12:42 pm |
  19. b in FL

    Anyone with common sense knows this is not Obama's doing and has been coming on for years. Yes, he & his advisors made a miscalculation on the job market but if they hadn't put the stimulus in place we would be in worse shape. At least gas prices have remained fairly low (much less than last summer) and our 401k's have come back...that has to account for something. I work for a company that just merged with a larger one so, guess what, many employees are going to lose their job. That's the direction our country is going in and it needs to be reversed. How many of you would want to be in the President's shoes during this very difficult time?

    October 4, 2009 12:49 pm at 12:49 pm |
  20. Kelsey

    [ICARE Obie needs to go take a class on economic 101 or sit down for hours with Nobel prize winner economists. These are the brains he needs…]

    Not sure if Jimmy Carter is the exactly one that will lead us out of this problem.

    October 4, 2009 01:08 pm at 1:08 pm |
  21. S M R

    Thanks Republicans for CRIPPLING OUR COUNTRY so DEEPLY. What percentage is OBAMAS fault: 0%. Anyone saying anything different is DELUSIONAL.

    October 4, 2009 01:20 pm at 1:20 pm |
  22. Bill

    on the other hand, how about the 47% who pay no taxes of the country higher the people to work.

    October 4, 2009 01:22 pm at 1:22 pm |
  23. Joan

    The administration should check how every Governor has allocated the stimulus money that was meant for shovel ready jobs. They should do an analysis of how many jobs each state has created with their share of the money. It would be disappointing to think that some Governor's might not want the job situation to improve for purely political reasons. The statistics on this might spur all of the governors to use the money more wisely.

    October 4, 2009 01:37 pm at 1:37 pm |
  24. S M R

    SHUT UP REPUBLICANS!!! You have NO CASE when it comes to defending the Bush Administration. It will take years of hard work to recover from the reign of the Republicans.

    October 4, 2009 01:38 pm at 1:38 pm |
  25. JSL

    Greenspan needs to right a book.."How To Build A Stronger America".

    Printed in China.

    October 4, 2009 01:40 pm at 1:40 pm |
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