Tag Archives: recovery

Business/Economics, U.S.

OWS, What Economic Recovery? Only 7% of people laid off in 2008 found equivilant paying new jobs, 33% have been downsized, no longer a white man’s world, some hope for getting a college degree

Rutgers’ Heldrich Center for Workforce Development has been following people who lost their jobs at the beginning of the Great Recession (2008-2010).  They found that the overwhelming majority have not recovered!

The ongoing study is called Categorizing the Unemployed by the Impact of the Recession.

They have five categories they ask people to describe their situation as: Made It Back. On Their Way Back. Downsized. Devastated. And Totally Wrecked.

After three years of job searching only 7% claim to have Made It Back.  23% say they’re On Their Way Back.  33% could only find jobs that forced them to be Downsized.  21% are Devastated, and 15% are Totally Wrecked.

Percentages don’t always give a good picture.  The study also gives you the number of people affected.  Made It Back: Up to 700,000 people.  On Their Way Back: Up to 2.3 million.  Downsized: Up to 3.4 million!  Devastated and Totally Wrecked combined: Up to 3.6 million!

The demographic composition (dc) of the study showed that the majority of people Devastated from their 2008 layoff, are people who do not have a college degree.

The dc of the study also showed that it’s no longer a “man’s world”, unless it refers to men being unemployed: 64% of men have been Devastated, compared to 34% of women. There was little difference in age groups being Devastated, between 20% to 30% range for most age groups.  And as far as ethnic groups being Devastated, 63% ‘white’ and 37% ‘other’ (a case of ‘the higher up you are the farther you have to fall’).

The study has other results, like 47% are still in poor financial shape, 58% suffered major economic impact, and 41% believe the economic changes are permanent.

Business/Economics, Opinion, U.S.

Economy About to Crash? What Happened to Recovery? 10 Reasons

March 10, 2011.

“I think this is the beginning of something severe.” said chief investment strategist at Windham Financial Services, Paul Mendelsohn. He’s referring to the more than 220 point drop in the DOW, which got little to no mention in national TV news coverage on March 10. There’s a lot of legitimate reasons for investors getting out of the market, not just in the U.S., but world wide. Those reasons also prove that there is no economic recovery.

Reason 1: First time jobless claims, in the U.S., for state benefits went up, more than expected (again).

Reason 2: World wide unemployment is high. Most of the violence around the world involves unemployment. The current crisis in North Africa and the Middle East is due, in part, to high unemployment rates. In 2010 Macedonia took the top spot with an official unemployment rate of 33.8%. How can the global economy recover when there are so many people not making any money to buy things with?

Reason 3: U.S. trade deficit increased (again).

Reason 4: China’s trade deficit increased (a surprise).

Reason 5: Credit ratings for Greece and Spain decreased (again).

Reason 6: Oil prices remain high, and still look to go higher (it’s interesting how analysts predicted the increase in price, without even considering, or knowing, that there would be a “revolutionary” crisis affecting many oil producing countries, or did they, mmmm?)

Reason 7: Food prices are increasing, worldwide. The UN (United Nations) says it does not see any improvement in food supply worldwide. I have read that Chinese wheat farmers will have only enough harvest for subsistence in 2011, nothing left over to sell. Across the world the food supply (“supply” is the key word, because some areas have plenty of crops but they aren’t getting to market) situation is getting worse for a number of reasons, from climate change, to the cost of transportation, to lack of credit, to political/social instability. A new problem adding to food supply issues is that migrant workers are not working. This is due to things like anti-migrant attitudes in the U.S., and the increasing violence in North Africa and the Middle East.

Reason 8: Union busting in the United States. Why should this be considered a factor? Because the goal of union busting is to reduce pay and benefits for employees. If workers are going to be making even less than what they are now, then that’s less they’ll spend while shopping. Gee, isn’t the U.S. economy a “consumer” based economy, which would mean the more a worker spends the better it is for the economy?

Reason 9: Stagnant pay for 90% of U.S. workers. Recently the IRS (Internal Revenue Service) reported that their own study, into the wages and salaries of taxpayers, reveled that 90% of taxpayers had no increase in pay in the past 20 years (when adjusted for inflation). The study also showed that the top 5% of taxpayers saw a 33% increase in earnings over the same period (also adjusted for inflation). Basic economics states that for an economy to do well the money in the system needs to go through as many hands as possible. Clearly the money is staying at the top and not trickling down.

Reason 10: This is probably a very important sign that there is no U.S. economic recovery. The world’s largest bond fund, PIMCO’s Total Return Fund, dumped all its U.S. government bonds, then moved into cash/cash equivalent big time. Why is that important? PIMCO used to be the biggest holder of U.S. bonds. That’s because they trusted that the U.S. government could pay its debts. By selling ALL its U.S. bonds PIMCO is indicating that they don’t think the U.S. government can pay back its debts. PIMCO has actually told other investors to get out of U.S. bonds. Not good. The move into cash is a traditional investor’s way of preparing for the worst. How much did PIMCO move into cash? In January PIMCO’s cash holdings were about 5%, now they are at 23%, a big jump. PIMCO is now selling off mortgage backed securities, this indicates that PIMCO is expecting another drop in the housing market.

There are plenty of other reason to list, you can do your own homework. Some of my sources: Voice of America, Reuters, CNN, Russia Today, The Atlantic. Do your own research, I’m not getting paid for this.

Business/Economics, Idaho, International, Opinion, U.S.

Europeans Strike! Who Cares About Terrorism?

Europeans were told that a Mumbai style terrorist attack in Europe was foiled, do they care? Hell no! Why? Because, according to strikers in Latvia, people are dying because of the drastic measures undertaken by their government to deal with their crashing economy. In other words, Europeans are more afraid of their governments than random terrorists.

Today, people in France, Spain, Belgium, Ireland, Greece and several other countries not mentioned in U.S. media, went on strike. What happened to the economic recovery? A former European Union commissioner is quoted as saying “The party is over…”. European governments want even more drastic belt tightening, increasing the burden of paying for the partying of political and business leaders upon the average European taxpayer. No wounder Europeans are outraged.

Is this a sign of pending doom for the U.S. recovery? The same caca del toro is happening with our leadership here in the U.S. Where are the mass strikes? Are we so afraid of our leadership that we’d rather continue playing along with their war on terror game?

The real terrorism is being waged on the average U.S. worker, by corporate America and their puppets; our political leaders. Let me give you an example: When my son was 17 he got a job working for a movie theater here on the east side of Idaho. His first two weeks he put in 90 hours. We though he was going to get overtime pay, nope, not under the Fair Labor Standards Act. According to the Idaho Department of Labor, movie theater employees are number 5 on the list of jobs exempted from overtime pay.

We also learned that Idaho employers do not have to provide breaks under Idaho state law. My son was told that he would be fired if he was caught taking a break or eating, even when he worked 8-9 hour shifts. Here is what Idaho says: “IDAHO LAW DOES NOT REQUIRE
1. vacation, holiday, severance or sick pay;
2. a discharge notice or a reason for discharge;
3. rest periods, breaks, lunch breaks, holidays
off or vacations;
4. premium pay rates for weekends or holidays
worked;
5. pay raises or fringe benefits; or
6. a limit on the number of hours an employee
can work per day or week for employees 16
years of age or older.”

Visit labor.idaho.gov

Wake up America!