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The Great Jobs Depression Worsens, and the Choice Ahead Grows Starker
The Great Jobs Depression continues to worsen.
A job seeker checks for new jobs postings at the Glendale Workforce Services Center Thursday, Aug. 19, 2010, in Glendale, Calif. Employers appear to be laying off workers again as the economic recovery weakens. The number of people applying for unemployment benefits reached the half-million mark last week for the first time since November. (AP Photo/Damian Dovarganes) The Labor Department reports this morning that companies created ony 67,000 new jobs in August. That's down from the 107,000 they created in July. And because the government laid off temporary Census workers, the economy as a whole lost 54,000 jobs.
To put this into perspective, we need 125,000 net new jobs a month just to keep up with the growth of the population and the potential workforce.
Think of it this way. The number of Americans willing and able to work but who cannot find a job hasn't stopped growing since the start of 2008. All told, about 22 million Americans are now jobless. Add in those who are working part-time who'd rather be working full time, and we're up to 25 million.
And because most families depend on two paychecks, the practical impact is almost double.
All this has a negative multiplier on the economy. If families can't pay their bills, their mortgages become delinquent (that's why mortgage delinquencies keep rising), their credit card bills go unpaid (we're seeing a notable rise in credit card defaults), and they can't afford to buy anything other than necessities (hence auto sales have plummeted, new homes sales are down, and retail sales are in the pits).
As a result, more and more businesses decide to lay off workers (or refrain from adding them) because they can't sell the goods and services they produce.
The last time we saw anything on this scale was in the 1930s. The last time we did anything about this on the scale necessary to reverse the trend was in the 1930s and 1940s.
It is not that America is out of ideas. We know what to do. We need massive public spending on jobs (infrastructure, schools, parks, a new WPA) along with measures to widen the circle of prosperity so more Americans can share in the gains of growth (exempting the first $20K of income from payroll taxes and applying the payroll tax to incomes over $250K, for example).
The problem is lack of political will to do it. The naysayers, deficit hawks, government-haters and Social Darwinists who don't have a clue what to do would rather do nothing. We are paralyzed.
If there was ever a time for bold government action it is precisely now. Obama should be storming the country, demanding the largest responses to the jobs emergency in history. He and the Dems should be giving Republicans hell for their indifference to all this.
Instead, Obama is all over the map -- a mosque controversy, an Israeli-Palestinian peace talk (that may take years to complete if ever), a symbolic withdrawal from Iraq, and lots of little tax-cutting ideas.
Senate and House Democrats, meanwhile, are on the defensive. Polls even suggest Dems may lose the House and possibly even the Senate in November.
Business leaders have either gone silent or gone reactionary, as they did in the 1930s.
But the pain and suffering of tens of millions continue. Government revenues continue to drop, and the safety nets and public services they rely on are subject to even more cuts.
Ever wonder why the nation is turning isolationist and xenophobic? Why we're lashing out at undocumented immigrants, even though fewer are here now than a few years ago; why the rise of anti-Islam feeling now, although 9/11 was nine years ago? Why the virulence and hate-mongering on right-wing radio, and the surliness in the blogosphere?
The practical choice we face is this: Either major action to reverse the jobs emergency or years of intolerably high unemployment coupled with demagoguery and scapegoating.
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117 Comments so far
Show AllCreate full employment with a massive Global Clean Energy New Deal, or face the prospect of angry voters electing demagogues and fascists in desperation.
Without a Clean Energy New Deal, the world will go into a death spiral of ever increasing conflict and environmental destruction.
On the other Job Crisis Thread, I explored the fact that technology has destroyed far more jobs than offshoring has and how eliminating some of the so-called productivity enhancing forms of technology/mechanization would provide people with employment. This sort of decomplexification will occur as the supply of energy inputs and other resources continue to shrink. Certainly, ridding ourselves of the overseas US Empire and most of the budget for the National Security State will free up needed monies to advance renewable energy production and the construction of alternative transport, with an initial emphasis on electrified rail transport, and these projects will provide jobs. But eventually, those jobs will end, and those employed on them will need to find new jobs. Or we could lower the retirement age to 50. But given how pinched most of those age 50+ folks are for a continuing high level of cash flow to pay for their mortgages and other material items, just lowering the official retirement age isn't as simple a solution as it seems (not to mention the social-welfare budget issues that would be included).
IMO, reliiance on the federal government given current political realities is a grave mistake. In no way does it have the interests of the majority in mind whatsoever, rhetoric aside. There's lots of derilict factories whose remaining facades could be razed, the grounds cleared and somewhat decontaminated, and labor-intensive urban farms could sprout as a result, somewhat along the lines of Growing Power based in Milwaukee. The corporation sitting on the land will present a problem as will the local government that acts to "protect" the corporate interest versus provide for its constituents's real needs, but that could easily be overcome through the wholesale recall of the local government. And once a few examples of this sort are established, then many more will occur. That is the sort of Direct Action that must take place if people are to have jobs and food. And at some happy moment, Agribusiness will finally be busted into the little farms it once was, which will supply a further quantity of jobs.
Resource depletion is a part of Ecological Overshoot, and this consideration regarding the future is incorporated into my above suggestions. Back in the early 1950s there was lots of animated discussion about how technology would bring about an unprecedented Leisure Age where we'd all be concerned mostly with what to do with all that extra time we'd have on our hands. It should be clear that Age will never happen--it was a very ugly dream and distraction. Millions are in debt to the point where they will never be able to retire--to enjoy a leisure they've been indoctrinated into as an entitlement. The level of anger we've seen so far is nothing compared to what's possible in the future if nothing gets done to give people meaningful tasks that will provide them with some form of income. And given the fact that the vast majority of people in the USA are naive about the extent of the trouble they're in, if that anger isn't channeled in a positive direction, we may potentially have an even worse problem--Top-Down dictatorial direction that exacerbates everything.
October 2nd Labor March on Washington. Let's get this started. Time to take our country back.
I second that. Busses are getting scare, so suggest you make your arrangements ASAP.
Joe
How about a labor action such as storming Wall Street on a Monday to commence a National Strike?
Mightymite writes earlier:
"And you cannot fix our economy by raising taxes in the middle of a recession/depression. For once ther [sic] republicans are right, most of Lord Bushes [sic] tax cuts should stay for the moment.
"You cannot fix our economy by starving the small business which employs above 70% of all employees now."
This borders on troll talk.
"most of Lord Bushes tax cuts" went to his self-proclaimed Base: the "haves and have mores." The tax cuts (mostly to the rich) had a sunset provision. The sunset provision should be allowed to stand.
Meanwhile, who is trying to "starve the small business which employs above 70% of all employees now"??? Starvation of small business by what means? For what possible reason?
In addition, the suggestion that small business employs above 70% of all employees has been a self-reinforcing Media Myth.
For example, it is alleged that small business claims the highest rate of "new hires," while those who walked away from those jobs (it's called "turnover") are not part of the equation.
In general, the suggestion that politicians of either major stripe seek to "starve" small business in general is a total diversion from Reich's argument. OTOH, there are exceptions. One is the government incentive roller coaster that small businesses trying to create and/or install "alternative" energy systems such as wind and solar face year after year.
One result of our alleged non-policy on "alternative" energy would seem to be that General Electric is the largest U.S. producer of wind turbines. No average homeowner can afford these, while many smaller wind systems could be employed but they are never highlighted either by government or the Media.
A major obstacle to installation of most "alternative" energy systems is the up-front cost. Maybe MIT and the banks and the Congress could get together and try to find out which systems are the most efficient and reliable for the most people, and then incentivise those.
Green jobs, properly financed, could be the only realistic way out of this "recession." That, and cutting the military by at least half.
Nawwww...it can't happen here...
-30-
Absolutely correct, but it doesn't have to be that way. We have allowed the elite to share their profits with the politicians that made it all happen. And then the world crashed.
Only the rich can get us out of this, because the poor can't. And that requires increased taxes on all incomes (wages and investments) over $250, 000 per year, at least until our economy has stabilized.
The problem, however, is that the elite have been funding the elections and the politicians are reluctant to interrupt the cash flow, but the alternative is a rebellion and the Pols will be on the street anyway. It is time for them to step to the plate if the game is to be won.
Nothing is going to change until we have public funding of campaigns. If politicians are going to be beholden to their funders, those funders should be the taxpayers. And at $5 per taxpayer per year it would be a bargain. Even at 100 times that. We MUST lobby our senators and representative to co-sponsor the bill at:
http://fairelectionsnow.org/about-bill
Jack Lohman ...
http://MoneyedPoliticians.net
Poor Robert Reich, he's reached the point where all he can do is regurgitate democratic talking points and trying to blame the failure to repair our economy on the republicans or the American people.
This old song is turning quite ripe. People simply recognize lies for what they are.
A silly and useless article.
We don't need Obama to do anything, we don't need Democrats in the house and senate to save us, we need to take the power back and fix this mess ourselves.
http://www.ryanhartman.wordpress.com
"The Great Jobs Depression Worsens, and the Choice Ahead Grows Starker"
So, of course, today's Labor Day Edition of the Harrisburg Patriot-News Rag runs a big story asking several people in the area who already have really good jobs what their "dream job" would be, and of course none of them were happy in the jobs they already have. Ask me. My ideal job would be "any job paying a living wage". Tone deaf idiots.
"Stephen V. Riley
“I am active in the Emerging Christianity movement,
I see Christianity maturing…
Increasing number of Christians do not take the bible literally.”
Just as well.. given the character of the 'God'-idea of the holy bible. (shudder!).
Do not (one might in sanity say) use that malicious character called 'God' in the story of the bible as a role model.
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