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Jobless rate to rise as false recovery hightens

jobless rate soars obama frontpage

“The increase in jobs highlighted in the nation’s most recent unemployment report carried the sound of economic promise, but Obama administration officials on Sunday warned that the public shouldn’t expect any dramatic improvement in the jobless rate largely because of the effect of thousands of “discouraged” unemployed people who have resumed their search for work.”

One could suspect that the markets will recover no matter what the jobless rate, or other indicators for that matter, would suggest. It is also suspect that this recovery will be basically artificial until such time as individuals actually do feel ‘the positive economic activity.’ Right now investors know that if the corporations screw up badly enough they now have a government bailout to fall back on. The concept of a ‘Free Market” used to include the idea of the ‘survival of the fittest’. This constraint used to help regulate the market but now that it’s been replaced by the idea that a corporation can be ‘too big to fail’ what does it really matter what the indicators say.

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This ‘get out of jail free’ card puts the markets on a largely artificial basis which assumes that there will be no penalty for even the grossest mismanagement. Until the underlying causes of the crash are addressed (and this doesn’t seem to be happening yet) no real recovery can take place and individuals will not feel the difference. It may be very naive to think this, but maybe the legislators could start by reinstating the controls they repealed to create this mess in the first place. This will be difficult but until it’s done, but this idea of a ‘jobless recovery’ will remain, basically, an oxymoron until a real economy returns to the Western world.

” The increase in jobs highlighted in the nation’s most recent unemployment report carried the sound of economic promise, but Obama administration officials said Sunday that the public shouldn’t expect any dramatic improvement in the jobless rate, largely because of the effect of thousands of “discouraged” unemployed people who have resumed their search for work. Some economists assert that the unemployment rate, which held steady at 9.7 percent in March, is likely to be driven higher as many more such people are lured into looking for work by signs of recovery.

The number of people looking for jobs rose by more than 200,000 last month compared with February, according to the Economic Policy Institute — and that’s a good sign, economists say. It means that Americans are seeing more jobs being created and that they’re optimistic about their prospects. “Source: Washington Post

broad unemployment graph

Indeed, US jobs are not coming back because the factories will not re-open, because those factories are now in China. This did not happen in previous recessions.

US corporations began outsourcing and off-shoring jobs to China shortly after they were able to convince the US government to dismantle trade and investment regulations, about 10 years ago. All the corporations thought this was great because they could employ people in China for 10 cents an hour and still sell the stuff for the same price back home in the US. How long could this continue? – for as long as the consumer and US government could continue borrowing. Time is almost up.

The US will soon have no choice but to either slap import restrictions on products from China, or devalue their currency so they can keep borrowing. Either way, the whole corporate deck of cards is going to collapse. After that the rebuilding can begin. We must bring back the manufacturing jobs.

2 comments

  1. Has anyone factored in the Peak Oil part of the “recovery “? How can there be a bona fide recovery if the price of oil keeps draining the profits to grow with, and the payrolls to pay the workers a decent wage? It isn’t going to happen. The Industrial Age is over and the American worker should start thinking about returning to the farms as the Reverse Industrial Age commences.

  2. James,

    You are SADLY mistaken. You are buying right into the plans of the globalists to put you back into the stone age.

    Peak oil is a scam designed to create artificial scarcity and jack up prices while giving the state an excuse to invade our lives and order us to sacrifice our hard-earned living standards.

    Publicly available CFR and Club of Rome strategy manuals from 30 years ago say that a global government needs to control the world population through neo-feudalism by creating artificial scarcity. Now that the social architects have de-industrialized the United States, they are going to blame our economic disintegration on lack of energy supplies.

    Globalization is all about consolidation. Now that the world economy has become so centralized through the Globalists operations, they are going to continue to consolidate and blame it on the West’s “evil” overconsumption of fossil fuels, while at the same time blocking the development and integration of renewable clean technologies.

    In other words, Peak oil is a scam to create artificial scarcity and drive prices up. Meanwhile, alternative fuel technologies which have been around for decades are intentionally suppressed.

    Peak oil is a theory advanced by the elite, by the oil industry, by the very people that you would think peak oil would harm, unless it was a cover for another agenda. Which from the evidence of artificial scarcity being deliberately created, the reasons for doing so and who benefits, it’s clear that peak oil is a myth and it should be exposed for what it is. Another excuse for the Globalists to seize more control over our lives and sacrifice more American sovereignty in the meantime.

    http://www.infowars.com/articles/economy/peak_oil_index.htm

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