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America's economy a train wreck it's rice and beans from here out
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by Rory Cripps | February 21, 2010 at 12:41 pm
899 views | 29 Recommendations | 26 comments
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Close to 3 million unemployed Americans will lose their unemployment benefits in April if congress doesn't extend benefits. The unemployment rate in Jan. was 9.7 percent, down.3 percent from Dec. But as of Jan. 6.3 million Americans have been unemployed for six months or longer, up 183,000 from Dec.
About 2.5 million of the unemployed were not counted in the Bureau of Labor Statistics (BLS) monthly unemployment report, because they had not searched for work within the four weeks preceding the monthly BLS unemployment survey. Those workers, for the most part, have simply given up any hope of finding work.
As it now stands according to the most recent BLS unemployment survey, 14.8 million American workers are unemployed. However the actual number is more in the 25 million range.
Since the Great Depression (which no economist to this day has been able to explain the cause of) the last time the U.S. unemployment numbers were this bad was during the Reagan years, in the 1980s. Indeed, the unemployment rate was actually higher under Reagan than it is now and at one point hovered around 10 percent for months.
But the economic picture was a lot different back then: In those days, many of the unemployed still retained equity in their homes, had retirement accounts to fall back on, and credit wasn't sapped as it is now. Today, many of the unemployed have seen their home's value plummet, their retirement portfolios decrease in value as much as 50 percent, have exhausted all their credit, and have seen their health care costs sky rocket. .
January's .3 percent drop in the unemployment rate from Dec. is by no means cause for celebration in view of the fact that in Jan., an additional 183,000 workers have been unemployed for 27 weeks or more.
The drop in January's unemployment rate to 9.7 percent from 10 percent in Dec. can be attributed in part to the addition of 52,000 temporary workers, 33,000 government workers (9,000 of which were hired for the Census), 15,000 health care workers, and 29,000 motor vehicle/parts and plastic and rubber workers. But during that same period, 75,000 construction workers (mainly in commercial construction), and 19,000 transportation and warehousing workers lost their jobs.
What these job numbers tell us in a nut shell is that there is very little demand for durable goods and commercial construction. It also tells us that people can't afford new vehicles and that they're buying parts in order to keep their older vehicles on the road.
Every downturn pushes some people out of the middle class before the economy resumes expanding. Most recover. Many prosper. But some economists worry that this time could be different. An unusual constellation of forces — some embedded in the modern-day economy, others unique to this wrenching recession — might make it especially difficult for those out of work to find their way back to their middle-class lives.
Labor experts say the economy needs 100,000 new jobs a month just to absorb entrants to the labor force. With more than 15 million people officially jobless, even a vigorous recovery is likely to leave an enormous number out of work for years.
Some labor experts note that severe economic downturns are generally followed by powerful expansions, suggesting that aggressive hiring will soon resume. But doubts remain about whether such hiring can last long enough to absorb anywhere close to the millions of unemployed.
Some labor experts say the basic functioning of the American economy has changed in ways that make jobs scarce — particularly for older, less-educated people like Ms. Eisen, who has only a high school diploma.
Large companies are increasingly owned by institutional investors who crave swift profits, a feat often achieved by cutting payroll. The declining influence of unions has made it easier for employers to shift work to part-time and temporary employees. Factory work and even white-collar jobs have moved in recent years to low-cost countries in Asia and Latin America. Automation has helped manufacturing cut 5.6 million jobs since 2000 — the sort of jobs that once provided lower-skilled workers with middle-class paychecks.
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Rory Cripps
New Port Richey, Florida, United States
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158
St. Louis, Missouri, United States
Rhonda J Mangus
North Tonawanda, New York, United States
stejeb
United Kingdomnanute
New York, United States
Spydermonkey
huntsville, Alabama, United States
Hugh Askew
Omaha, Nebraska, United States
Uwe Paschen
Narita, Chiba, Japan
Mary Richard
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Susan Marie Kovalinsky
Ledgewood, New Jersey, United States
Most RecentMost Recommended Comments (26)
at 13:08 on February 21st, 2010
Is there an underlying message in the photo? Can he cook rice and beans? I see a poem here. Give me some time, I'll come up with something.
at 13:35 on February 21st, 2010
Get enough of them together they'll write the poem for you.
Seriously though.
The economic climate now is so bad in the industrianised western world that even a slight shift of interest rates, house or oil prices or movements on the stock market prices can mean even more catastrophic figures as far as unemployment goes.
The picture here in the UK is just as bleak when everything is looked at realistically, rather than the rose tinted glasses the party in power want us to wear when viewing.
In the US, I honestly believe that the democrats need to be given the opportunity, the time, and the assistance of the republicans to get things back on track, give and take on policies is needed by both parties and their supporters for their mutual benefit and to get out of the quagmire the USA is floundering in along with most of the west.
Quite what the answer is in the UK I don't know, "come back Guy Fawkes....all is forgiven!" springs to mind, if it's any consolation America, cooperation between political parties here is every bit as productive as yours.
At least that chap Fawkes had the right idea, blow the lot up and start again!
at 13:35 on February 21st, 2010
nanute: You come up with a poem? MINCHIA! I didn't know that you had it in you sugar!
But send all your poems to me! I'll cut and chop! I'm good at that!
I thought that you had painting to do . . . did you finish? NO! There is no "underlying message" in the photo--and don't even go there! JEEZ! Godfather Floyd and I have been using the word "chimp" since about 1970 to describe white people and white people only. And as you know, we're both white. He be whiter than me though . . . I've got brown eyes! LOL!
at 13:47 on February 21st, 2010
Painting is done. I will send you something in the AM. It won't need any editing; trust me. Steve is right. That is all.
at 13:51 on February 21st, 2010
Nanute: Whatever you say homey. Gottcha back! But please be gentle and kind. I'm very sensitive you know . . . .
at 14:16 on February 21st, 2010
I forgot to tell you: When I was done painting my mother said: "Jesus Christ, Anthony, I could of hired a chimp, and he'd of done a better job." lol
The day you become sensitive, I'll stop communicating.
at 15:34 on February 21st, 2010
nanute: As you know, I'm only sensitive when it comes to lovely ladies. I have no problem ripping guy's eyeballs out of their heads. And after I do that--not saying here that I have literally ever done such a dastardly and horrible thing, of course--I thank my maker for allowing me to express my emotions.
The U.S. economy is a train wreck! It started under Bush, but O has been at the helm for over a year now. Just had a lengthy conversation with my good friend Joyce who was a dyed-in-the-wool Obama supporter--you know how those pretty NY Italian girls are, don't you--and she's fed up with Mr. O! She's dyed-in-the-wool "progressive" Democrat just like you are . . . perhaps even more so!
The unemployment rate began it's climb in May 2008. At that time it was 5.4 percent and when O took office, it was 7.7 percent. From 2000 through 2008, the average unemployment rate was 5.12 percent! In other words, for a eight year period, the average unemployment rate was 5.12 percent and never hit 6 percent!
Meanwhile, as the unemployment rate is rising precipitously, Mr. O is allowing that pretty Italian woman, Pelosi, the Speaker of the House, to focus entirely on "health care reform" at the expense of the train wrecked U.S. economy. Don't you feel that priorities were misplaced and that there's even something wrong with this picture?
at 03:57 on February 22nd, 2010
Meanwhile, as the unemployment rate is rising precipitously, Mr. O is allowing that pretty Italian woman, Pelosi, the Speaker of the House, to focus entirely on "health care reform" at the expense of the train wrecked U.S. economy. Don't you feel that priorities were misplaced and that there's even something wrong with this picture?
It's only been a little over a year, Rory. You've already forgot that the Congress and the Administration passed unemployment legislation in 2009, extending benefits, and subsidizing COBRA by 65%? And the Congress is attempting to extend benefits that ran out in the end of December, but guess who is not willing to help the unemployed middle class workers that can't pay their mortgage?
And the Stimulus Bill was passed long before health care was taken up. Has it helped? Not as much as I'd like, and I'm sure you'd like. Maybe, if more of the stimulus would have been targeted towards job creation, and less towards tax incentives we'd be seeing some job recovery.
Don't expect much help from the deficit hawks any time soon. I think we are about to see a repeat of what happened during the last Depression. Under pressure from fiscal conservatives, Roosevelt cut back on government spending and the economy, and unemployment suffered immeasurably. We can decide to stop government spending, cut the budget, and cause more pain and suffering on those that had nothing to do with causing this train wreck. You'd think that some people think suffering is cathartic. Not when one is starving and about to lose one's home, me thinks.
(Can't get the Italics off.)
at 12:10 on February 22nd, 2010
nanute:
Not when one is starving and about to lose one's home, me thinks.
Yeah! Tell me about! LOL! Problem is there are no squirrels left around here. ARRRRRRRGH!
at 13:45 on February 21st, 2010
I like rice and beans.
at 13:57 on February 21st, 2010
158: I like rice and beans too! In fact, down here in the Tampa Bay area of Florida, where I reside, my lunch typically consists of Cuban food which is often accompanied by rice and beans.
But I like a little chicken or pork along with the rice and beans . . . and especially a nice fresh fish . . . .
at 13:47 on February 21st, 2010
The economy is a mess and it will take years for a full recovery. However, a slow but solid recovery is better than spending trillions more in tax money to try to speed up economic expansion.
at 15:58 on February 21st, 2010
Most call it rice and peas here, even when it's with beans. Go figure!
Good post. It's the same in Canada too, our government's just tightened it's belt on mortgage rules because of this. Steve's spot on in his assessment - takes cooperation on both parties parts.
at 16:33 on February 21st, 2010
Blue: You've got the blue of it no doubt! From what I can gather--and believe me, I hope that I'm wrong in my assessment--we, here, in the Western World, are in for a tough go of it!
at 18:59 on February 21st, 2010
We have never questioned,but rather taken it for granted as development model,the American economic system,crony capitalism with greed surrounding it.How a system with vast income disparities,top 2% making 50,000 US$ per anum and majority of Americans have to work seven a days a week to make both ends meet,is acceptable to Americans?
With vast army of the unemployed,unemployment benefits likely to be done away with if Congress decides so,war spendings have never been reduced to ensure safe frontiers for jobless Americans,who have to tighten their belts as an act of patriotism.
The charm of capitalism has mesmerised us so much so that we don't ask for food,shelter and other basic amenities essential for our survival,we ask for our perceived enemy's head.Cost doesn't matter.
at 19:32 on February 21st, 2010
T K: YES!
We have never questioned,but rather taken it for granted as development model,the American economic system,crony capitalism with greed surrounding it.
The idiots and insensitive louts--the powers-that-be that have no country---that control the American capitalist system don't realize that without willing workers, their trophy wives wouldn't want anything to do with their flaccidity . . . .
I've always been amazed that a bunch of putrid and vile little wimps--that have never attained manhood---can exert so much influence on the world's economy and, therefore, people's lives.
at 19:24 on February 21st, 2010
We look to the American economic system because it has, without out fail, produced more wealth for more people, for a longer period of time, than any system known.
Lacking government intervention, it would crash and burn with some regularity, but long run, the results would be just fine (for those that survive).
Mixing too much government with what should be private enterprise, produces results that are unasked for, and unexpected. What comes next is the disaster that no one foresaw. The survivors will be few, the pain will be great and long lasting.
at 19:52 on February 21st, 2010
Hugh: YES!
Lacking government intervention, it would crash and burn with some regularity, but long run, the results would be just fine (for those that survive).
There is absolutely no evidence--statistical, empirical, and otherwise-- that supports any claim that the Federal Reserve has benefited the American economy or has fulfilled and has lived up to its commitment.
at 22:45 on February 21st, 2010
The American system has produced more wealth,but for few.Secondly,wealth US produced not by efforts of its own people,department of plunder(Pentagon) deserves more credit than US Corporations for stealing wealth which belonged to others.
Once Second World War was over,US usurped Britain's commercial interests and concessions in the Middle East.Churchill had had to write to president Roosevelt with a broken heart,complaining that US took advantage of Britain's difficult situation and inherited its belonging while Britain was still alive.
The matter of the fact is that Britain was alive,is still alive,but was bed ridden.An empire where sun never set was reduced to status of a dog which neither could bark,nor bite but wag tail,which still it does.
I qoute verbatim Geoge F.Kennan,on US policy for the Middle-East,1948:"We have about 50% of the world's Wealth,but only 6.3% of its population...........In this situation we can not fail to be object of envy and resentment.Our real task in the coming period is to devise a pattern of relationships which will permit us to maintain this disparity without positive detriment to our national security.To do so,we will have to dispense with all sentimentality,day-dreaming;and our attention will have to be concentrated somewhere on our immediate national objectives".
Kennan didn't tell,or may be never wanted Americans to know,how US acquired that 50% World's Wealth.To fulfill his objectives US imperialists are in Iraq,Afghanistan;disparities are maintained in home ground.Exploits of the wars are meant for large corporations.As a matter of policy certain percentage of population has to be kept unemployed,and majority at mere subsistence level.
at 07:01 on February 22nd, 2010
Tell the Germans and Japanese about American Imperialism.
That they are the economic powers that they are, is evidence of the lack of American Imperialism.
at 08:23 on February 22nd, 2010
Why not Vietnamese,Koreans,Phillipinos,Indonesians,Chillieans,the list is endless of countries which are victims of US atrocities committed in the name of democracy and freedom?
What about Iraq and Afghanistan and Pakistan.Japanese and German cases are different.Both were needed to contain communism;Japan to contain China and North Korea,West Germany to East.
Don't compare orange with apple.
at 15:21 on February 22nd, 2010
t k kidwai
How about you remember that the Vietnamese didn't want our help, after the south fell, you do remember that don't you?
Perhaps you will remember the thousands of Americans that died in the Philippines, fighting a common enemy....do you recall that?
Ask the South Koreans about atrocities committed by Americans, who died by the tens of thousands to allow them to live free of tyranny. Did you ask them? Did you compare the blossoming Orange of South Korea with the sour Apple of North Korea?
Speaking of atrocities, have i seen you pointing out the mindless horrors committed by the wonderful muslims bent on terror in Iraq? Did you mention the beheadings? The bombs, the rapes? I looked, but saw no mention of such, nor any reference to the brutality of the Taliban in Afghanistan. Why is that?
Did you bring up the mass murders by any of the wonderful despots in those countries where you accuse us Americans of atrocities? Or is it ONLY Americans that get your craw? Was it the Americans that invaded North Korea to start the war, or did the North Koreans invade South Korea, and kill millions? Please, please, enlighten us!
Did you complain of the North Vietnamese "re-education camps" Do you remember the hundreds of thousands of boat people that fled the joyful life of the conquering North Vietnamese? That just slipped your mind, perhaps?
at 15:26 on February 22nd, 2010
Hugh: You're on a roll here! BRAVO! YES! Monsters, savages, and murdering thugs in every corner of the world no doubt since time and memorial . . . .
at 18:37 on February 22nd, 2010
I am not on a roll, nor even a strudel, simply recounting reality.
Some seem to think that their opinion IS reality. While the US has made many, many, many errors over the years, ignoring the reality of the brutality of others means that they allow that brutality to continue. Perhaps, at times, our lack of timidity and cowardice means that we are to be seen as bullies by those that revel in cowardice towards the brutes of this world.
at 23:20 on February 22nd, 2010
Hugh Askew: thanks for your response to my comments,which,of course were not of your liking.While respecting your opinions I beg to differ with you on many counts.I would like to be as breif and precise as possible.
I never justified any kind of atrocities committed by Talibans, Pakistani dictators or Middle-eastern monarchs.You can go through my posts.
The difference between brutal dictators and US imperialists lies in this very fact that brutal dictators killed their own people,a much condemnable act.I used harshest words while referring to them.US imperialits interventions to keep communists at bay in Europe,Latin America and Asia,Far East ,and the means they employed are horrific.Each and every brutal dictator be it Basista,Pinochet,Shah of Iran,Sadat and Husni Mubarak ,Saudi Kings,saddam Hussain Zia-Ul-Haque and hundreds like them received unstinted support of US imperialists to remain in power.
In India the first elected communist government in the state of Kerala in 1959 was overthrown with active support of CIA.Ruling party at centre received funds from CIA to organise 'paid demonstrations' to dismiss an elected government.This was written by well known American academic,intellectual ,diplomat and US Ambassador to India in 70s, Daniel Patric Moynihan,corroborated by Ellis Burner,US Ambassador to India in late 50s.
I can qoute passage after passage from writings and speeches of Americans to substantiate what I say.
I like American people,I lived in USA for couple of years,and am not against them.They are as good or as bad as other people are.It was Americans who forced their government to withdraw from Vietnam,the same people stood opposed to war on Iraq.It is American establishment which is hated,would continue to be hated as long as US doesn't change foreign policy.
at 20:33 on February 21st, 2010
T K:
Again: There is much truth to what you say! Food for thought, here in the western world, as it were.