1 in 10 Americans Unemployed
Published November 06, 2009 @ 06:48AM PT
10% unemployment is here. The worst unemployment rate since 1983; for those of you who weren't in elementary school then - how does this recession match up in your mind to that one? Given the rising cost of living compared to the declining value of wages over the last two decades, how are households getting by in this bleak reality relative to 26 years ago? Will Obama and Congress get us out of this mess?
More than 7M Americans have lost their jobs in the last two years, and remember, official unemployment rates only count people actively looking for work. The # of people out of the workforce through no fault of their own is likely much higher - they've given up looking for work at this point.
Should we rejoice that layoffs are happening more slowly? Education and health services are actually adding jobs, and government employment is stable - stimulus funds are likely contributing to this. But even government programs can't prop up the construction industry, as our anemic real estate markets cancel out the need for construction work.
Scarecrow at FDL says we have a "moral imperative" to get the unemployment rate down as soon as possible, and that we need another stimulus package passed by the holidays. I am someone who thinks that even after recklessly spending so much on Iraq and tax cuts under Bush, spending heavily on stimulus and public works initiatives (if designed well) is absolutely essential. My and future generations are already heavily leveraged - at least let's be so for good reason with positive long-term prospects. What do you think?
My thoughts go out to all those out of work struggling to get by. My thoughts also go out to the loved ones of those who lost their lives at Fort Hood yesterday. What a horrible, horrible tragedy.
(Photo "Building Trades Unemployment Insurance Rally" by aflcio2008)
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Leigh is a PhD candidate in urban planning at MIT, and a consultant on U.S. Gulf Coast recovery. She sits on the Board of the Allston-Brighton Community Development Corporation in Boston, and has worked with non-profits, foundations and local governments on policies and programs aimed at reducing urban poverty and inequality.
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And to show the full impact, the broader measure - which throws people who are working part time but want to be full time or "discouraged workers who've looked at some point in the last year" back into the count - is at 17.5% according to this article: http://www.nytimes.com/2009/11/07/business/economy/07econ.html?_r=1&th&emc=th
Having read Scarecrow's post, he has some good thoughts. It's time for the Democrats to grow some spine as a group and figure out a way to pass some legislation that will actually DO something to fix the problems harming our nations and we the people rather than selling us out and passing feel-good but do-nothing (or worse) legislation (like the current health insurance access improvement act masquerading as health CARE reform) and trying to blame it on Blue Dogs, and/or that the Republicans aren't playing proper bipartisanship. We are past the point of NEEDING something. We need health CARE reform, we need a bailout for the PEOPLE, we need aid that helps before it takes every ounce of strength in body and soul to avoid homelessness (and to properly fund the aid systems), we need JOBS not more unemployment and we need to find out (or is it admit?) why our jobs are leaving or our employers aren't hiring, etc. But no, everyone would rather bicker and say it's someone else's fault nothing is getting done for the people.
Dang it, I was in GRADE SCHOOL when Reagan was elected and talk of "trickle down" economics started. How much longer do we have to endure it and related theories and practices? Stuff like bailing out the top and corporations and pretending that helps the working people and the poor would be a good example of a "trickle down" practice. Besides, even a grade school (or younger) kid should be able to explain why "trickle down" economics won't work and in particular not on any grand scale like a national or international one. Why do I say this? Because at its heart, trickle down depends on those at the top being willing to part with their money and resources even if it's primarily through purchases and wages. That's not normal human behavior. Greed comes naturally to too many of us - look at fights over toys in preschool and kindergarten and on through the rest of school (or even as adults). All that changes is how we fight and what we fight about. If trickle down were going to work, it would have to be NATURAL for those at the top to WANT to do things like pay fair prices and livable wages (at least for covering the most basic of needs).
But I don't want to be leveraged for bailing out corporations any more. I want to know my neighbors got to eat, to keep a roof over their heads, to hopefully keep employed if able to work, to access the medical care they need when they needed it. That our infrastructure was kept safe and functional. That schools actually educate and have all supplies to do so (and to pay teachers fairly - I can still remember growing up and the school district making a point of paying something like $50/mo too much for free lunch eligibility). Trickle UP works. Just look what's happened around markets with small increases in food stamps.
Posted by Danetta Amschler on 11/07/2009 @ 06:49PM PT
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Danetta -"Stuff like bailing out the top and corporations and pretending that helps the working people and the poor would be a good example of a "trickle down" practice."
Actually, that's NOT 'trickle down' economics. You need to remember that Reagan said "Government is never the answer, but it's always the problem".
The bailout - giving massive 'welfare' to poorly-run, and failing corporations is anti-productive. While the first bailout was being debated, Conservatives were in strong opposition - at leasst in the pubic sector and talk radio.
We can see that the Conservative pundits were right, and the promise that 'Unemployment won't rise above 8%' was just a fairy tale. In actuality, it would've been far cheaper, and more effective if each American was handed $100,000.00 to spend as they CHOOSE. Let WE THE PEOPLE decide which companies sink or swim - not some neo-dictatorship.
"Trickle-down" is an altogether different thing. It's based on the idea that the 'Already Wealthy' - not the Bankrupt - will spend THEIR money - not OURS - on items that will keep the working classes employed.
I can cite one good example - VIKING YACHTS. This is a company that builds yachts for millionaires. At one point, heavy taxes were placed on the purchase of new Luxury items - like yachts. In response, yachters resorted to buying USED yachts. That slowed down Viking's business, and led to the layoffs of Working Class people. Once the tax was lifted, and rich people started buying new yachts, jobs were restored. THAT'S "TRICKLE DOWN".
Posted by Bobby Steele on 11/11/2009 @ 06:06AM PT
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