Economic Forecast: 'There's No Great Recovery'

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The Anderson forecast from the University of California at Los Angeles released a report Wednesday, warning the economic growth rate is too small to help the nation climb out of its slump.

Forecast Director Edward Leamer noted the gross domestic product was 15.4 percent below a "normal" growth trend."

"To get back to that 3 percent trend, we would need 4 percent growth for 15 years, or 5 percent growth for eight years, or 6 percent growth for five years, not the disappointing twos and threes we have been racking up recently," he wrote.

"It's not a recovery.It's not even normal growth. It's bad," he warned.

He added that the unemployment rate will keep falling partly because discouraged workers are dropping out of the labor force.

And even though jobs are being created, "the tepid growth continues to obscure the nation's most fundamental problems: too much government spending funded with too much borrowing, too little national savings to cover late-in-life health care issues and too many workers lacking the skills to compete in the modern economy," Learner argued in a UCLA press statement.

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