- Posted by mybudget360 in Employment, bailout, banks, economy, government, recession, unemployment
- 0 Comments
It is hard to imagine why Wall Street would cheer a 10.2 percent official unemployment rate since the stock market actually ended the day higher after this dismal news. Since the start of the recession, 8 million people have lost their jobs. A total of approximately 27 million people are unemployed, underemployed, or have given up looking for work. All the talk of improvement got people out looking for work again and that is why the unemployment rate saw a big jump from 9.8 percent to 10.2 percent even though employers “only” cut 190,000 in October. The data is deceptive for many reasons. For one, long-term unemployment is a sign that many jobs will be lost forever. The second more ominous point is that many sectors are experiencing mini-depressions.
All job cuts are not equal. If we had to sum it up, paper pushing jobs in the financial sector seem more immune than good producing jobs. Let us look at how the real employment situation is panning out:
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Durable good manufacturing has fallen a stunning 18 percent since the recession started. If we look at construction and durable goods, both sectors are experiencing depressions while the FIRE sector is experiencing a tiny recession. And take this data point as a reference:
Durable goods and manufacturing:
December 2007 jobs: 8.728 million jobs
October 2009 jobs: 7.121 million jobs
December 2007 jobs: 8.242 million jobs
October 2009 jobs: 7.697 million jobs
This should tell you what is happening to many average Americans. Only two years ago, the durable goods and manufacturing sector had 486,000 more jobs than the FIRE sector. Now, the FIRE economy has done a role reversal and has 576,000 more jobs than the durable goods manufacturing sector! Who are we really bailing out here?
Simply taking the employment report at face value is meaningless. What is happening is the bailout structure is designed to prop up the primary industries that created the housing bubble. Many of the FIRE jobs are over compensated Wall Street cronies who are using taxpayer dollars to gamble. The real fact is many sectors of the American economy are in deep recession. Unless you work for the government or the FIRE sector, chances are your industry is in a deep recession. Then again, why else would the stock market be up by 60 percent since March? It is easy to make money when you eliminate the biggest line item (employees) for short-term bottom line gains for those in the FIRE economy since your job is subsidized by the taxpayer.