Posted on 11/06/2009 3:15:22 AM PST by Son House
"You need explosive growth to take the unemployment rate down," said Dan Greenhaus, chief economic strategist for New York-based investment firm Miller Tabak & Co.
Greenhaus said the economy soared by nearly 8 percent in 1983 after a steep recession, lowering the jobless rate by 2.5 percentage points that year.
But the economy is unlikely to improve that fast this time, as consumers remain cautious and tight credit hinders businesses. In fact, many analysts expect economic growth to moderate early next year, as the impact of various government stimulus programs fades.
Economists cite several reasons why job growth is increasingly lagging recoveries. To begin with, layoffs are more likely to be permanent, compared with temporary furloughs by manufacturers in earlier downturns. And globalization has made it easier for companies to hire overseas when rebounds begin.
Many companies also are squeezing more production from their existing work forces.
Productivity, the amount of output per hour worked, jumped 9.5 percent in the third quarter, the Labor Department said Thursday.
That's the sharpest increase in six years and followed a 6.6 percent rise in the second quarter.
Economists closely watch initial claims, which are considered a gauge of the pace of layoffs and an indication of employers' willingness to hire new workers. Claims remain well above the roughly 400,000 that economists say will signal job creation.
The Federal Reserve, meanwhile, said Wednesday that it will keep a key interest rate at a record low level of nearly zero for an "extended period" in order to support the economy.
The central bank said economic activity has "continued to pick up," but Fed Chairman Ben Bernanke and his colleagues warned that rising joblessness and tight credit could restrain the rebound in the months ahead.
(Excerpt) Read more at foxnews.com ...
Where does running Business and the folks who create the Jobs out of town get us? Detroit used to be the Auto Capitol of the world, and there's plenty of new cars around, yet taxes and excessive regulation helped run Detroit out of businesses.
A Tour Of Detroit's Ghetto
http://www.youtube.com/watch?v=T6WKMNmFsxM
A Tour Of Detroit's Ghetto: Part 2 (Dec. 2006)
http://www.youtube.com/watch?v=BfhsS-KMFL4
A Tour Of Detroit's Ghetto: Part 3 (Dec 2007)
http://www.youtube.com/watch?v=pHhUDKfiggY&feature=related
Where are all those Stimulus bill Jobs Jobs Jobs if Unemployment is still rising?
“as consumers remain cautious”
Gee, I wonder why consumers remain cautious???
It’s The Obama Recession (tm) tell everybody !!!
No can do. Too much pollution. So sorry.
Found another series dated April 17, 2009;
Detroit Ground Zero for Economic Collapse Part 1
http://www.youtube.com/watch?v=UBFDiPgkEUc&feature=related
Detroit Ground Zero for Economic Collapse Part 2
http://www.youtube.com/watch?v=fA_tIvb8CI4&feature=related
Detroit Financial Collapse Part 3 of 4
http://www.youtube.com/watch?v=pJKWeKNvIG0
Detroit Ground Zero for Economic Collapse Pt 4
http://www.youtube.com/watch?v=pBd2_s7vzbM&feature=related
^
I’ve only watch part 4 so far, it was amazing in that the new construction houses were even seemingly being abandon
Consumers are remaining cautious because everyone is losing their jobs...
I have a new friend from Detroit who left after getting robbed, he said things did get better under Bush, specifically 2005 was the best year for the auto sales
http://www.usnews.com/money/blogs/flowchart/2009/11/05/15-cars-fueling-the-auto-recovery-3
Annual car sales in 2009 are likely to end up at the lowest level in years, down more than 40 percent from their peak in 2005.
That is really only supporting the carry trade where dollars are borrowed, put in "guaranteed" CDs in Asia and Australia, and loaned from those banks into all sorts of bubbles there (mainly real estate). Those bubbles will pop and crash the world economy again. The people who speculate on a lower dollar and higher foreign currencies for their guaranteed profits will get their comeuppance. Unfortunately they then default on their loans and create other havoc in our economy.
The second problem from carry trade stimulation is that it raises the price of resources which strangles the economy here and makes sustainable recovery impossible. The down swing from the resource price bubbles causes even more havoc. There were two main contributors to the recession last year, first was the bank failures and credit seizure. Second was the resource/commodity bubble that peaked in July08.
A third problem is the stimulus which takes resources from the economy, uses them to build "hot lanes" or other nonsense, and strangles legitimate businesses that need those resources. There is overlap of course, and some stimulus money props up businesses that would otherwise fail. But the economic payback of the politically selected stimulus projects is questionable and in many cases negative. Around here the "hot lanes" project merely screws up traffic so that, at some distant future time, there will be an extra lane for politically correct drivers.
They can start by using real unemployment figures.
10% my you know what. I bet it’s much much higher.
Such crap. Unemployment is already over 10%. These numbers don’t reflect the people whose unemployment benefits have already run out. Also doesn’t reflect the numbers of out of work people who have exhausted their job search because of longtime unemployment.
What about the effects of government anti-stimulus packages?
BS, building the wrong products and over pricing them ran them out of business. No to mention the half ass engineering that has gone on at places like government motor's. They have long been convinced they could replace quality with slick marketing.
That is what you have going on today, calling an auto that has a modified fuel delivery system, so it has the ability to burn ethanol better, a hybrid is nothing but fraud.
The numbers also don’t reflect all the self employed people like real estate agents, many mortgage brokers, home inspectors, insurance salesmen, car salesmen, insurance agents, painters, plumbers, business consultants, etc. etc. etc. who don’t qualify for unemployment.The best barometer will be tax revenues, what percentage are they down? I’ve heard over 25%!
1) There is NO recovery
2) We are in a depression
3) Our gooberment is corrupt and lies about everything
4) The media is part of the gooberment
LLS
I stand corrected. You bring up excellent information.
We’re in worse shape than most would have us believe....
I would politely argue they did build auto’s people wanted, trucks and SUV’s. GM had a great V8, Chrysler had a good one too. Your should give better evidence that higher cooperate taxes, the EPA, and not drilling our own oil is not making the auto business more difficult
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