The real unemployment in the US is 20% or 30 million. These are the real unadjusted figures calculated on the same basis as the official figures before the method of the calculation was changed in the 1990’s. Reported government figures, especially in the US, are continually manipulated in order to suit the political aims of the government. Therefore, one should not give any credence to the published figures. Most governments mislead the people most of the time.
With 20% unemployment in the US we are already approaching the levels in the 1930’s when peak total unemployment reached 25%. The 20% current level is the non-farm unemployed and is still a lot lower than the non-farm peak figure in the 1930’s which was 35% unemployed.
Since we are still in the early stages of this crisis, it is our firm opinion that non-farm unemployment levels will reach 35% at least in the US in the next few years.
But even the current figure of 30 million unemployed is a catastrophe. Adding dependants to every unemployed person there are currently 100 million people affected by unemployment in the US. In the next three months 3 million unemployed will fall out of the social security safety-net. These are the people who were laid off in the second half of 2008. Including their families this means that around 10 million people will become destitute between now and September with no social security and no savings. If we then add the 4 million that were made redundant in the first half of 2009 that will result in an additional 13 million people including families will become destitute around Christmas. This is a disaster of unimaginable consequences that will affect the whole fabric of American society.
The consequences will be social, political, financial and the effects on the US economy will be of a magnitude which is substantially greater than during the Depression of the 1930’s. We must remember that none of the problems in the financial system have been resolved but only put on a very temporary hold. The rise in unemployment combined with the reduction in consumption will lead to the next and much more severe banking crisis.
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how come it is difficult to find what is really going on in where I live which is Canada.
ReplyDeleteI have been unemployed for 6 months and I cannot even find a part time job.
If anyone knows where I can find information on the true state of the Canadian economy please let me know.
Anonymous Toronto, Ontario
P.S our city smells like rotting garbage
Go here: Rotting In Toronto
ReplyDeleteWhat? My TV tells me the recession is over and unemployment is going down? Hmm, yet I have had almost NO new orders for my small business in 60 days? I am sure it will come back soon, cause my TV told me the economy is getting better.
ReplyDeleteAnybody know who's on American Idle tonight?
Pardon my not understanding the "new math" - but if the total population of the United States is 330,000,000 then 20% unemployment would equal 66 MILLION people out of work.
ReplyDeleteI believe he is calculating the 'working class' rather than the entire population. The entire pop. does not work
ReplyDeleteThat would make sense - brain fart.
ReplyDeleteSi - that is what it means. 20% of people wanting to work full time cannot find work!
ReplyDeletePut your bills on Mitch McConnell's desk. His wife Elaine Chao was US Labor Secretary for George W Bush. Make certain Republicans walk the same side of the street your family walks.
ReplyDeleteis it dark in kenya
ReplyDeleteOh Honey, this apocolypse is so romantic.
ReplyDeleteDamn. So much for moving to Canada!
ReplyDelete"Pardon my not understanding the "new math" - but if the total population of the United States is 330,000,000 then 20% unemployment would equal 66 MILLION people out of work."
ReplyDeleteYou don't count children and retired folk in the working population. So the number is something around 155,000,000
A lot of top college graduates are going to be filling out applications at McDonalds and Arbys. No one will care they got A+ grades in Marketing and Finance.
ReplyDelete