Posted on 06/04/2010 8:26:50 AM PDT by blam
IT'S OFFICIAL: We're Falling Into A Double-Dip Recession
Robert Reich
Jun. 4, 2010, 10:52 AM
We’re falling into a double-dip recession.
The Labor Department reports this morning that the private sector added a measly 41,000 net new jobs in May. (The vast bulk of new jobs in May were temporary government Census workers.) But at least 100,000 new jobs are needed every month just to keep up with population growth.
In other words, the labor market continues to deteriorate.
The average length of unemployment continues to rise – now up to 34.4 weeks (up from 33 weeks in April). That’s another record.
More Americans are too discouraged to look for a job than last year at this time (1.1 million in May, an increase of 291,000 from a year earlier.)
Of the small number of jobs created by the private sector in May, many came from temporary help services.
Which is one reason why the median wage continues to drop.
Why are we having such a hard time getting free of the Great Recession? Because consumers, who constitute 70 percent of the economy, don’t have the dough. They can’t any longer treat their homes as ATMs, as they did before the Great Recession.
Businesses won’t rehire if there’s not enough demand for their goods and services.
The only reason the economy isn’t in a double-dip recession already is because of three temporary boosts: the federal stimulus (of which 75 percent has been spent), near-zero interest rates (which can’t continue much longer without igniting speculative bubbles), and replacements (consumers have had to replace worn-out cars and appliances, and businesses had to replace worn-down inventories). Oh, and, yes, all those Census workers (who will be out on their ears in a month or so).
[snip]
(Excerpt) Read more at businessinsider.com ...
Unexpected....I assume?
Those loose red hairs always screw the hairdo up!
The other thing I worry about is if the global economy recovers, the price of oil will begin to increase again, making our recovery even more difficult. Of course, given what's going on in Europe right now, a global recovery doesn't seem all that likely either.
“The only reason the economy isn’t in a double-dip recession already is because of three temporary boosts”....
And until the double-dip in the White House is boosted....nothing will get better.
Wait, why don't you climb on Daschle's shoulders?
Stopped Clock. Who'da guessed.
that is basically the definition of a deflationary spiral. In response, they will create more money and throw it at the wrong people and the taxpayers will foot the bill. again. My opinion, gold is probably not overpriced.
Thge disaster known as Obama. The sheep who watch TV empoweer him.
President Barack Obama says the addition of 431,000 new jobs in May shows “the economy is getting stronger by the day.”
Speaking at a trucking company outside Washington, Obama embraced the Labor Department’s new employment snapshot, released Friday morning. A burst of census hiring lifted payrolls last month, and the unemployment rate dipped to 9.7 percent.
Rose colored glasses....
So the answer is to provide middle class welfare in the form of Earned Income Tax Credits and then higher taxes to punish small business owners?
It's so easy being a liberal. The answer to every problem is higher taxes and more welfare.
Mr Reich is short and to the point.
A positive scenario right now would be for the economy to go teats up again, prompting the expected republican slaughter of the left in November, resulting in some real opposition to the commiebammie, and then we might see a recovery with some spine, AFTER next winter. Course, they’s lots can go wrong out’chare.
For all the jobs “added” we sure seem to stay around 450,000 weekly unemployment claims. I’d like to see IRS figures on just how many people have W-2/1099 wages reported every month. I have no doubt it continues to decline every month.
The ‘government employee’ bubble has to burst soon, and will make the subprime bubble look like mouse knuckles. Federal, State, and local governments are upside down because of declining tax receipts, high payrolls and union pensions.
...half thru the trading day and the DOW is down 240 @10013...we’ll see if it breaks below 10000 for the day...the 3-4 pm hour could be very interesting.
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