A record 32.2 million people -- one in every 10 Americans -- received food stamps at the latest count.
Grim Statistics
The official unemployment rate is 8.5% and rising sharply. However, if you start counting all the people that want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a closer picture of what the unemployment rate is. That number is in the last row labeled U-6.
It reflects how unemployment feels to the average Joe on the street. U-6 is 15.6%. Both U-6 and U-3 (the so called "official" unemployment number) are poised to rise further.
Looking ahead, I expect the service sector to continue to weaken. Mall vacancy rates are rising and a huge contraction in commercial real estate is finally started. There is no driver for jobs and states in forced cutback mode are making matters far worse.
Unemployment is a lagging indicator, it is likely to continue rising until sometime in 2010.
ADP Employment Report
For another look at March jobs including a breakdown of stats by small, medium, and large sized businesses, please take a look at ADP Reports March Nonfarm Private Employment Decreased 742,000.
Depression Level Statistics
I consider these job losses to be depression level totals. Admittedly conditions are not as bad as the great depression, but this is certainly no ordinary recession by any economic measure including lending, housing, bank failures, jobs, the stock market, commodity prices, treasury yields etc.
Link
Unemployment is devastating to citizens. However, the unemployment dilemma is symptomatic of larger growing problems. The largest problem is the accummulation of unsecured debt by citizens. Primarily short term debt that cannot be repaid.
ReplyDeleteThis causes a secondary problem. Over capacity. That is, the ability of trade partners to ship more goods to our shores than we can consume and the ability for our domestic factories to produce more than we can utilize.
Once these problems arise producers cut back production because there is no longer sufficient demand for their products. These cutbacks include reduction of the employee workforce.
The employee cutbacks aggravate the over capacity dilemma. What develops is a continuous cycle that self perpetuates the disaster.
This song has been played before and it always ends the same.
I am gross and perverted
ReplyDeleteIm obsessed n deranged
I have existed for years
But very little has changed
I am the tool of the government
And industry too
For I am destined to rule
And regulate you
I may be vile and pernicious
But you cant look away
I make you think Im delicious
With the stuff that I say
I am the best you can get
Have you guessed me yet?
I am the slime oozin out
From your tv set
You will obey me while I lead you
And eat the garbage that I feed you
Until the day that we dont need you
Dont got for help...no one will heed you
Your mind is totally controlled
It has been stuffed into my mold
And you will do as you are told
Until the rights to you are sold
Thats right, folks..
Dont touch that dial
Well, I am the slime from your video
Oozin along on your livinroom floor
I am the slime from your video
Cant stop the slime, people, lookit me go
Haven't had tv programming since Dec. 2001 (the 9/11 repeat info was just too much), but we were recently on vacation, no phone in the room, but tv, and my husband kept turning it on and getting entranced, yikes, luckily there were lots of other things to do, even though it was raining much of the time, so we managed to avoid the entrancement. Now we're back home where the tv plays VHS and DVD's only, and forms the base for my ancient Christmas Cactus, otherwise we would have probably brought the more modern tv into the house, as it stands, that one sits in our vacant vintage home, and will not make it's way over here because it does not provide a large enough surface for the plant.
ReplyDeleteResist tv, or just try a couple of days without it, it's not impossible. TV is as addictive as any other addictive substance, it just hasn't been recognized as such.