Copyright: include link to this article on top of reproduction if you use it.
“The small amount of job gains during the past few months not only reflects the response to slow output growth, but also a lack of confidence going forward,” said Bart van Ark, chief economist at the Conference Board, a business research group based in New York. “The economy as a whole has been weakened by a dismal housing market and slow consumption, which especially hamper small- and medium-sized enterprises.”
UNEMPLOYMENT RISES;9 PERCENT PLUS; ANEMIC ECONOMY Associated Press
The unemployment rate rose to 9.6 percent in August from 9.5 percent, as the nation lost 54,000 jobs. Private employers added a net total of 67,000 workers, but 114,000 temporary census jobs ended.
Job creation by private companies is too weak to reduce the unemployment rate anytime soon. Unemployment has been 9 percent or higher for 16 months, nearing the record of 19 months, set during the 1982 recession and recovery.
Without more job growth, personal incomes won’t grow by much. That will limit consumer spending, which fuels 70 percent of the economy.
Green shoots are pipe dreams
“All wealth is created by making something from nothing.” Comes from an economics text book from the ’60s
In practice that means using our natural resources to make the things we need and want. Whether it be state or private sector, that is how it is done. That is what the Asians are doing with a lot of success, and it is what we are not doing nearly as well anymore since the green guilt trip has blocked so many people’s minds.
Generally it is the resource and manufacturing sectors who create the wealth, followed by the private service sector who support the resource/manufacturing sector. Government is a wealth re-distributor of wealth for the most part, and a net drain on the economy.
That is why the green thrust to shut down our resource industries is so potentially devastating to all of us. If you accept the green philosophy, you should not lament the country’s dismal economic performance. It is comical to listen to you blame the government and big business for all the shut-downs and hardship you cause to the rest of us.
Unemployment benefits benefit no one in long run
The argument politicians use for extending and increasing unemployment benefits is that its good for the economy, because these people will spend this money right away on goods and services. In reality, its all political
Their argument, if thought out logically, does not make any sense. If it did make sense, wouldn’t the government give each citizen a cheque for 1 million dollars? Wouldn’t that “stimulate” the economy?
The fact is that by taxing economic activity (people who work and businesses) to pay for people who do no work might provide a short term increase in demand in the economy, but those costs will have to be paid in the future through higher taxes or an inflated currency. It does not increase economic output. This inevitably leads to higher debts and countries inflating their currency to pay off these debts (Germany circa 1920s, Zimbabwe circa 200′s). Both were failed outcomes.
The government paying me to run around the block (or sit at home and collect unemployment) does not produce a good or service valuable to society. All it does is lower economic output on a macro level scale.
It is too bad no one is asking politicians the right questions, such as “Mr. President, if extending unemployment benefits increases and stimulates our economy, why doesn’t your government give each citizen a cheque for 1 million dollars”? Would that be the ultimate implementation of your economic theory and stimulus for our economy?
The economic “elites” are begining to wake up to the fact that teh damage they have done will effect them too. The American working class has not had a real increase in pay since 1979 when auto worker pay (the nations high standard measure) peaked at a then $20 per hour.
Since then the “elites” sold the working class a pile of illusions that are evaporating and taking the economy with them. Square footage of average houses doubled from an already high 1700 sq.ft. to over 3500 sq. ft. on a new home.
The fact that the homes were made of pressboard, wrapped in Tyvec weatherproofing paper and covered with cheap vinyl siding didn’t prevent the banks financing the speculative bubble.
Technology, cheap imports, loose credit, advertising and political manipulation were used by these “economic elites” to keep the workers from realizing their growing plight.
With their bursting illusions of secure retirement, increasing value of real estate investment and advancing employment possibilities, American workers are depressed, confused and fearful. “Economic elites” and their political minions are attempting every possible angle to find someone or something to blame; someone to blame, that is, besides the ones actually at fault, the “economic elites” who stole nearly half the national wealth for the top 1% of “elites” or “thieving garbage” depending on your point of view.
- US unemployment reaches 10 per cent; government hiding real numberBernanke on Unemployment: ‘we don’t think it will get to 10 percent’ A better measure of unemployment is the U-6 numbers and this would make the real number around 17.5...
- 23 states report higher unemployment for SeptemberMeasuring unemployment is an art which can lead to highly variable rates. Unsurprisingly, the U.S. government uses a method that excludes millions of Americans who seek employment. The lower rate...
- The real truth about the unemployment rate“A true labor market depression faced those in the bottom…of the income distribution; a deep labor market recession prevailed among those in the middle of the distribution, and close to...
- Unemployment to hit 12 percent: analysts“For the first time in at least six decades, private sector employment is negative on a 10-year basis (first turned negative in August). Hence, the changes are not merely cyclical...
- Unemployment rate flirts with 10 percent“In 2008 and 2009, we lost 8.36 million jobs,” he said. “We’ve gained back 951,000, which is 11.4 percent of what we lost, so it’s taken us a year to...
- Is 10 percent unemployment the new normal? Fed says so“Get used to a “jobless recovery.” The Federal Reserve says the nation’s unemployment rate will stay around 10-percent this year, and eight-to-nine-percent in 2011.” “Unemployment will linger” and, it must...
This entry was posted on Monday, September 6th, 2010 at 9:33 am and is filed under Poverty. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.