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Is 10 percent unemployment the new normal? Fed says so

the jobless recovery

“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 be added, will continue as part of the economic elite’s continuing war on working people. The transfer of massive amounts of public wealth to an economic elite to where now, the richest 1% of the US population now owns over 70% of all financial assets, a percentage that continues to grow, simply illustrates that a ‘class war’ is going on.

Federal Reserve says the nation’s unemployment rate will stay around 10 percent this year

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.

The biggest reason is that consumers will most likely keep their spending down. U-W Whitewater professor Russell Kashian says the projection is quote, “dead on.” He says the current recovery is not creating enough new jobs to meet the demands of the unemployed, plus those now entering the workforce. Over 160-thousand Wisconsinites lost their jobs over the past year – and Kashian says the state has only created an average of two-thousand-jobs a month over the last decade.

Analysts say jobless rates won’t go down very much until the economy starts growing by five-percent a year. It’s expected to grow no more than three-and-a-half percent in 2010. Wells Fargo economist Jay Mueller of Menomonee Falls said the big rush for credit before the recession will be felt for a long time. Source: Wisconsin News

The war against working people should be understood to be a real war. Specifically in the US, which happens to have a highly class-conscious business class, and they have long seen themselves as fighting a bitter class war, except they don’t want anybody else to know about it; all aided and abetted by their political enablers. It has been said by many before, including some Washington ‘insiders’ that Wall Street owns Washington.

real unemployment rate 19.8%

The real U.S. unemployment rate is somewhere in the 17.5% range. They always quote the friendlier 10% or less numbers but that does not include those unemployed that have given up looking for work. They have been hiding the fact that the US in in a state of absolute, catastrophic economic meltdown. The deception is great for the sucker’s rally in the stock market, indeed. Combine their dismal economic future with the combination of rampant anti-Americanism globally and you have a historic empire collapse that will rival the collapse of the Roman and British empires. History repeats itself again.

There can not be any economic recovery until and unless people get back to work. In an economy predicated on ‘consumption’, there simply can not be any real recovery until people begin to ‘consume’ again, and that won’t happen until people get back to work. The almost daily pronouncements about ‘stock market’ recoveries and slides is meaningless nonsense and simply reflects the speculation involved in manipulating and betting on stocks. It has little to do with what is happening in the real economy and real world and in the creation of real wealth as opposed to money.

High jobless rates could be the new normal
Industries that previously jump started employment aren’t able to this time

Even with an economic revival, many U.S. jobs lost during the recession may be gone forever and a weak employment market could linger for years.

That could add up to a “new normal” of higher joblessness and lower standards of living for many Americans, some economists are suggesting.

The words “it’s different this time” are always suspect. But economists and policy makers say the job-creating dynamics of previous recoveries can’t be counted on now. Source: MSNBC

The next thing we will begin to hear from the ‘experts’ and self-styled pundits is that there is a ‘jobless recovery’ – more nonsense of course that does diddley-squat to the under-employed, unemployed, or working poor. They will also redefine the ‘unemployment rate’ so that it appears better than it actually is so that it does nothing but provide political cover for politicians who really refuse to face the deepening social crises or whose ideology prevents them from actually confronting and doing something other than issuing the same sort of banal assurances that we are over the hump and things are looking brighter.

One Comment

  1. lynn lynn May 2, 2010

    Small businesses can’t get loans because Americans don’t save money. Small businesses get loans from our savings, and that’s how jobs are created. We can’t wait for the Obamastork to drop a job on our front porch steps. It doesn’t work that way! We have to save money like crazy! If every employed person who has an unemployed relative or friend would just put more money into a savings account, we would see a jobs recovery much sooner. If one spouse is working and the other is unemployed, they should streamline their lifestyle so that they can live on the one salary and put the unemployment checks into a savings account. That is the number one thing the unemployed can do to improve their chances of getting a job this year. Shooting resumes out of a cannon won’t do it. Jobs have to be created before you can get a job. Jobs are created from business loans that come from our SAVINGS. Period.

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