WICHITA — The nation lost 467,000 jobs in June, according to the numbers released today. That’s an astounding number, but less than earlier this year. It pushed the unemployment rate up from 9.4 in May to 9.5 percent. That, clearly, is a slowing in the rate and appears to be confirm that the rate is close to peaking in the next few months near 10 percent.
I was feeling comforted by this, until I read something from the Economic Policy Institute, a liberal economic thinktank.
The entire growth in jobs over the last nine years has now been wiped out – the economy currently has fewer jobs than it had in May 2000. The labor force, however, has grown by 12.5 million workers since then. “This is the only recession since the Great Depression to wipe out all jobs growth from the previous business cycle, a devastating benchmark for the workers of this country and a testament to both the enormity of the current crisis and to the extreme weakness of jobs growth from 2000-2007,” said EPI economist Heidi Shierholz.
6 Comments
Good news, are you kidding? Just look at the Midday Report. Nothing but bad news regarding our local and the national job situation. And what is his highness Obama doing about it? Trying his best to promote a ridiculous health plan that will cost more jobs and, at the same time, higher taxes. Wow! Did we just fall off the turnip wagon or what?
It’s going to take more than 5 months to undo the damage done to our economy over the past 8 years of overspending, massive deficits, and irresponsible financial practices in our unregulated financial industry. The crash was well under way BEFORE January 20.
There is nothing good about the latest job numbers. And there is not one iota of evidence showing it will get better.
bth, you are obviously a sharp fellow in numerous fields of study. But economics and post January 20, 2009 history does not appear to be one of them. Care to show the numbers on overspending, deficits and financial practices on the last 5 months versus the previous 80 years, let alone 8?
I thought this link was fascinating, and hopefully will lead to discussion. I am really curious if the debt solution proposed is remotely feasible:
http://www.cnbc.com/id/31706523
This DPR is going to hurt for a long time.
jerry – when I took a lot of Econ as part of my MBA I learned that you can run high deficits for a short period to ‘tide you over’ a downturn. The key is to do the opposite – surpluses – during good times. That is why Clinton’s actions were so important – he balanced the operating budget in his first year and finally balanced the overall budget (including debt service on the inherited debt) by the time he left office.
We are definitely in a bind today. It will take significant deficit spending to try to ‘prime the pump’ and get us through it. Unfortunately a decision was made to NOT save money during the previous 8 years when things were running hot. States and cities did the same thing – chose to NOT build reserves during good times. And many families and businesses did the same – no savings banked while working overtime.
Like the lesson from dream of the 7 fat cows and 7 skinny cows: bank the grain during feast time so you have enough to get you through famine. That same lesson was taught to me in all those Economics and business courses.
The situation today is similar to that faced by a ‘workout’ CEO taking over a bankrupt company. He will likely require bridge loans to get though the restructuring. He should not, however, be judged by the interest he has to pay on debt he inherited.
Debt for equity – that is another of the techniques a workout CEO might use. And, I think it is a part of what FDIC chief Shiela Barr (sp?) is suggesting to the banks. I’m not sure how a government entity would do that with government debt. And, if Obama were to try to pressure the financial industry into such swaps I am certain the Limbaughs, Hannitys and O’Reillys would howl.
A similar deby/equity swap is taking place with GM, Chrysler, AIG, Citi, etc as debt of these corporations is converted into stock. And, you might note the howls about THAT from talk radio.