You're correct about the fat, but there is still a lack of growth in the economy that is causing sustained high unemployment.<quoted text>
Ehhh, your Fox scare tactics don't wash, I think current unemployment levels represent the fat that had accumulated during the credit boom. American corporations, as an aggregate, are posting record profits. 7.8% may be the new 5% for a generation or more.
Accepting 7.9% unemployment is unacceptable.