Busted: Bankers and The Global Economy

February 14, 2011

Scary Facts About Getting a Job in America

Filed under: business, economy, money, recession, stagflation — Tags: , , , , — digitaleconomy @ 12:23 pm

Business Insider published “19 Scary Facts About Getting a Job in America.”

This recession is not another run-of-the-mill post-war recession, nor is it simply what globalism looks like. The recession in the U.S.A.  is a prolonged structural unemployment caused by multinational corporations fleeing high-cost labor markets to exploit low-cost labor markets. The impacts are real and devastating:

1) If you lose your job today, there’s a 70 percent chance you won’t find a job in the next month.

2) If you’ve been unemployed for a year, there’s a 91 percent chance you won’t find a job in the next month.

3) Two million people have exhausted 99 weeks of unemployment benefits. Another four million will do so in 2011.

4) There was zero job growth in the past decade, the worst 10 years on record.

5) In the most optimistic scenarios, payrolls won’t return to 2008 levels until 2013. In that time, the population will grow by 5 percent.

6) More than one in four jobs added to the economy last year were temporary.

7) At 2000 levels of labor force participation, the unemployment rate would be 13 percent.

8) When you count the unemployed, underemployed and discouraged workers, only 47 percent of the work force is fully employed.

9) The number of workers over 55 has increased nearly 8 percent in three years. No retirement means no hiring.

10) Four out of 10 baby boomers said they will have to “work until they drop.”

11) The average length of unemployment is 22 weeks.

12) For workers over 55, the average length of unemployment is 43 weeks.

13) In one of the hardest cities to find a job, Las Vegas, there are nine applicants for every job opening.

14) No jobs crash since the Great Depression of the 1930s even compares to what’s happening now, in terms of the number of jobs lost by the economy as a whole.

15) A 1 percent increase in unemployment leads roughly to a 1 percent increase in suicides.

16) More than 3 million manufacturing jobs have been lost since 1998.

17) The number of motor vehicle manufacturing jobs will decline by 20 percent in the next decade.

18) The number of apparel manufacturing jobs will drop by 57 percent over the next decade.

19) Here is the competition: A network engineer in Bangladesh makes $6,000 a year, while a CEO earns $30,000 on the average.

The Business Insider report concluded with the following observation: “Getting a job today means going up against terrifying odds.”

October 7, 2009

U.S. Employment Statistics: Job Losses Slow

Filed under: economy, recession — Tags: , , , — digitaleconomy @ 1:20 pm

usemployment10012009
uslaborstatistics
These are “official” labor department statistics. This does not reflect disenfranchised workers or those that have lost unemployment benefits. Actual unemployment is much worse.

June 6, 2009

Joblessness and Government Economists

Filed under: economy, money, security — Tags: , , , , , , , , — digitaleconomy @ 11:56 am

congrats economy cardSend a card to your favorite unemployed American.

If important economists say it, it must be true.

May 7, 2009

Finance Experts Double-Minded and Fearful

Fed ever hopeful

Fed ever hopeful

Desperate to be a financial cheerleader during the recession, Ben Bernanke insistently paints an economic picture of future light and in almost the same breath debate about the biggest “what if” about the so far dubious recovery. It isn’t that the American public doesn’t long for good news, but we aren’t going to be conned either. Records numbers of jobless Americans point to a real problem where recovery is concerned.

Experts continue to be fearful about government banking stress tests, as if banks are the only importance for a future recovery. Certainly, that is where the bulk of taxpayer money has been placed to keep the system operational and the American power structure in place.

The media easily reports both sides of the economic story, but mostly focuses on the negative and no wonder. The greatest reality is that an economic recovery is mostly in the minds of a few visionaries at this point. If the economy worsens, “big lenders” do not have enough money to survive. The media points the inevitable need to raise cash as a precaution. Now that is confidence in a recovery.

Government stress tests for finance put banks through two appraisals. One appraisal reflects expectations about the recession as it is and the other forecasts a recession deeper than what experts predict. The reality of the current recovery isn’t strong enough to be called that, but any glimmer of economic light has corporate promoters banging their gongs and playing the marching band in the hopes of stirring sentiment for a recovery.

Experts just can’t wait for the recovery as they now invent ways that the nation will recover and prosper while record numbers of Americans remain unemployed and homeless. The idea of home sales being on the increase has moneychangers truly excited for an abbreviated recovery and future corporate good times.

Investors and the public have been quite realistic about corporate finance. Stock prices, especially for banking institutions, have taken a beating. This has spurred the requirement for more capital to keep banks operational as investor sentiment continues to ruin them. The government has been there all along to prop up the system. As a result, there would seem to be little immediate fear for the system. The bottom line for investors and the public-at-large is the main concern and truly the main force behind ‘recovery’. The new brand of corporatism can’t stand the thought of needing the little guy for anything. They have a philosophical quandary on their hands.

What is truly sad is that economic cheerleaders want to convince us that the United States can have a recovery and enjoy good times again with record numbers of permanently unemployed Americans. The reality has set in that we are enjoying the fruits of our corporate policy of job exportation over the last two decades. Cheerleaders don’t want to acknowledge this reality.  The new brand of corporatism and government wants to redefine unemployment and prosperity to fit a new mold that belies any logic. I’ll post more about this tomorrow.

Blog at WordPress.com.