4.  High Unemployment Could Persist for Years

This is not what congressional Democrats wanted to hear: Larry Summers, President Obama's chief economic adviser, predicted that even though the economy will be growing by year's end, job availability will not. U.S. workers will have to wrestle with "unacceptably high" unemployment rates for years to come, Summers said. In fact, he expects unemployment to get worse before it gets better, despite the fact that it's already at 9.7 percent, the highest rate in 26 years. This news is particularly unwelcome for Democrats facing re-election next year. They're likely to face dissatisfied voters who question whether Democrats' economic policies (including massive stimulus spending) can really make them better off (although Summers argued that unemployment would be even worse if no stimulus had been passed.) Summers said the nation has "moved back from the brink of financial catastrophe," but it remains to be seen whether individuals feel safe from personal financial catastrophe, and how their feelings will translate into votes next year.

Read original story in Politico | Saturday, Sept. 12, 2009