I saw the following headline a couple of days ago:
Service sector growth accelerated September stock market gains.
That's a real head scratcher to me. I have issues with "so-called" economists who have declared that the recession is over, with some declaring that it ended as early as June of 2009. I want to be a part of that fantasy world they live in.
The recession hasn't ended as they love to proclaim. It has simply eased somewhat from the depths it hit in late 2008 and early 2009. No way can anyone claim a recession has ended when unemployment remains near ten percent. And that ten percent is skewed by the fact that it doesn't include people who have given up on employment, nor does it take into account the number of people who were reduced to part-times hours either.
Banks, insurance companies, and many corporations have reported record profits over the last two to three quarters. What are they doing with this money? The one thing they're not doing is hiring, and I'm willing to concede there are valid reasons behind this.They know this recovery, or the proclaimed end of this recession, is a farce. So they're hoarding the profits they've made.
A recovery is going to be hindered by many things. One being the greed and stupidity of the last decade that threw the average American so far into debt that they need sunshine pumped down to them to see daylight. Another factor is we've become a country which produces much less than we did as little as 20 to 30 years ago. Corporations fled to third world countries to make products at a fraction of the cost it takes to produce them here.
Usually you reap what you sow. Eventually this practice will have to catch up with them. When we lose jobs here to overseas operations it means less income here to spend on those products. Of course the money these corporations have saved moving production out of the country negates some of this issue. But I see that starting to change. But it's almost too little, too late.
You can't expect a sustainable recovery with no addition of jobs. You can't expect a sustainable recovery with the amount of government debt racked up over the last few years either.
70% of our economy is driven by consumer spending. How about we put the consumers back to work to enable some spending?
To me, most of you so-called economists, are nothing but parasitic mouthpieces for Wall Street and banking institutions.
10 comments:
I want some of whatever they're smoking ... must be some really good shit.
Mustang Sally -- Same here. ;)
You're right.
An example: A company has 50 employees in 2007. In 2008 the service they offer is no longer needed by as many companies and they lay off 10 people. The remaining 40 are busy but not rushed. The economy improves and companies need their service again. This happens gradually. Due to fear the 40 will loose their jobs, they work smarter and efficiencies occur. At the point the work is equal to 2007 the company is running at the same level with 10 less people. The owners make higher profits and put them in the bank.
That's why employment is not rising.
Hear ye, hear ye! I feel the same way, my husband was laid off in December of 2009. We are hardly making ends meet. It is a struggle to make the mortgage payment. But since we scrape by, we get zero help. If we were three months behind in our payment then the government would help us. It's a pain in the arse!
Charlene -- Yup. We're on reduced hours ourselves. It's minimal time. We work 75 hours rather than 80 hours in a two week payroll period and I see no end to that coming soon, if ever.
Christy -- I feel ya! Well, not in a dirty old man way. ;) Just scraping by is the new normal for the average person now.
Five years ago we had almost four grand in savings. Now we have no savings and are living on my paycheck alone. And working for the state, while I am practically guaranteed a paycheck, is not that great of a deal. We are considering having a huge yard sale and declaring bankruptcy. At least for the moment, my job is something they can't outsource. Yet.
They preaching theory in a practical world. Useless.
Um yeah I was wondering how people thought the recession is over. I mean when I go out onto the road there are more and more people. I always just assume that they are out of a job like I am, hopefully I am not for long though. Come on job! haha!
Can't spend if you don't work especially if you don't make enough to spend after bills are paid. ~*sigh*~
In the UK, they're saying the country is on the verge of bankruptcy, pensions and child benefits are being cut, and then the next news item is about the billions of pounds in bonuses the bankers will be getting at Christmas. No wonder they don't notice there's a recession, it doesn't affect them.
Many places are understaffed but aren't hiring because they work their current (small) staff to the max, burning them out, and they do it because they can...they know they won't go anywhere because it's not likely they'll find another job right away. It's sad.
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