13.9 million Unemployed

[clover]

Why Washington Isn’t Doing Squat About Jobs and Wages


SATURDAY, JUNE 4, 2011
by Robert Reich

The silence is deafening. While the rest of the nation is heading back toward a double dip, Washington continues to obsess about future budget deficits. Why?

Republicans don’t want to do anything about jobs and wages. They’re so intent on unseating Obama they’d like the economy to remain in the dumps through Election Day. They also see the lousy economy as an opportunity to sell Americans their big lie that government spending is the culprit — and jobs will return if spending is cut and government shrinks.

Democrats, meanwhile, don’t want to admit the recovery has stalled.  They worry such talk will further undermine consumer confidence or spook the bond market. They don’t want to head into the election year sounding downbeat. And they don’t think they have the votes for anything that will have much effect before Election Day anyway.

But there’s a third reason for Washington’s inaction. It’s not being talked about — which is itself evidence of the problem.

The unemployed are politically invisible. They don’t make major campaign donations. They don’t lobby Congress. There’s no National Association of Unemployed People.

Their ranks are filled with women who had been public employees, single mothers, minorities, young people trying to enter the labor force, and middle-aged men who have been out of work for longer than six months. You couldn’t find a collection of people with less political clout.

Women who had been teachers, public health professionals and social workers have been hit hard. These jobs continue to be slashed by state and local governments. Public schools alone accounted for nearly 40% of the nation’s total public sector job losses in the last year. From March 2010 to March 2011, women lost 214,000 public sector jobs, compared with a loss of 115,000 public jobs by men.

Unmarried mothers are having a particularly difficult time getting back jobs because their work was heavily concentrated in the retail, restaurant and hotel sectors. Many of these jobs disappeared when consumers reduced their discretionary spending, and they won’t come back in force until consumers start spending more again.

According to a new report by the California Budget Project, the recession erased more than half the jobs single mothers in California had gained from 1992 to 2002. The result has been a drop in the share of unmarried mothers in jobs, from 69.2% in 2007 to 58.8% in 2010. Unmarried mothers who still have jobs are working fewer hours per week than before.

Blacks also continue to be hard hit. Their unemployment rate here in California reached 20% this past March, up 5% from a year ago. That’s more than double their rate before the downturn. Some of this is because of the comparatively low education levels of many blacks, and their weak connections to the labor market. Some is due to employer discrimination. Blacks were among the last hired before the recession and therefore among the first to be let go in the downturn. That means they’ll be among the last hired as the economy recovers.

Many young people who have never been in the job market are unable to land a first job. Employers with a pick of applicants see no reason to hire someone without a track record, particularly those without much education. Unemployment among high school dropouts is hovering around 30%. Even recent college graduates are having a much harder time than usual finding a job. Many are settling for jobs that don’t ordinarily require college degrees, which pushes those with less education even further back in the line.

Older workers who have lost their jobs are at the greatest risk of continued unemployment. Employers assume they aren’t as qualified or reliable as those who are younger and have been working more recently. According to research by the Urban Institute, once you’re laid off, your chance of finding another job within a year is 36% if you’re under the age of 34. But your odds drop the older you get. If you’re jobless and in your 50s, your chance of landing another job within the year is only 24%. Over 62, you’ve got only an 18% chance.

What do these jobless have in common? They lack the political connections and organizations to get the ears of politicians, and demand policies to spur job growth.

[clover]

In the next two years Hackett Group predicts that technology and consultancy companies will take 350,000 jobs off shore.

Linda Levine of the Congressional Research Service says that the chances of of as many as 3.4 million service sector jobs will be moved off shore by 2015.

Between 2007-08 more than 800,000 additional american households found themselves trying to make do on under $25,000 a year....bringing the total to 29 million.

Between 2000 and 2008 the poverty rates in the suburbs of the largest metro areas in the US grew by 25% making the suburbs the most rapidly expanding segment of the poor.

Prior to 2008 consumer spending made up 60% of the US GDP.  With consumers unemployed GDP will drop and the spiral will begin.

If you're thinking of moving to China for a job, think again.

According to the Financial Times, Lew Frankfort, Coach’s chief executive, said that over the next five years the company would cut its China production to 40-50 per cent of its total from 85 per cent at present by opening factories in lower-wage economies including India, Vietnam and the Philippines.  Coach is a brand name accessories manufacturer.

[ragman]

Mike, what are you saying.....OTO's plan is not working?

I'm trying to enjoy my vacation down here  in Nashville, drink a little beer and listen to some Country Music but you are getting me depressed.    

There is some hope if we kick this guy out in 2012.  Did I read yesterday that Mitt was in a tie with him if the election was held today? There is one reason for hope although I'm not a big fan of Mitt. (I'm thinking pull the lever on anyone but OTO) We all know that there is going to be a lot of pain to pay the bills of the last 10 years but if some thing isn't done soon there will be anarchy in the streets.  Even OTO's men are starting to talk about this.  Maybe they are laying the ground work for a take over of democracy? 

Try smiling today even if everything is going to shit at the moment.

[clover]

Jim,
I don't think changing Presidents is going to change a thing.  We've had tax cuts for 8 years and it obviously hasn't worked. We tried the stimulus bill and that didn't work either.  Those two methods pretty much cover the Dem and GOP strategies. 
I think the telling tale is  when a major US company taking advantage of cheap chink labor decides to move to the PI where they can get even cheaper labor!
The only other thing I worry about is 13.9 million unemployed with guns!!!!

[deadserious]

The only other thing I worry about is 13.9 million unemployed with guns!!!!

Why?  Dissatisfaction breeds revolution and it's about damn time for another revolution.

[ragman]

cheap chink labor

Mike I'm beginning to worry about you.  Are you OK?   

Well if businesses want to move to another country what would you suggest?  Maybe Castro or Chavez can give you advise?   

For now it is back to beer and country music.     Nice show this afternoon on the General Jackson.  Heading to a honky konk up the road for ribs, beer and cute waitresses.   

[clover]

Please accept my apology Jim, I fell out of character.  As a liberal I'm not supposed to use words like chink, zipper head, slope, gook, dune coon, or camel jockey.

The labor rates are cheap in Venezuela and Cuba....but that nationalization thing deters businessmen

A Vietnamese will work for $1000.00 per year.......that's a little less than we pay here  (the jobs ain't comin' back)

http://en.wikipedia.org/wiki/List_of_minimum_wages_by_country

[rykat]

Robert Reich..........................
Robert Reich.....................
Oh yeah..............
Clintons scty of Labor..........right at home...............UC Berkeley................bastion of conservative thought.
Yeah...........Reich..............teetering  on some edge between Socialist and Communist but as the left points out a "brilliant man". But alas that article only offered the obvious and as usual no solutions.
But what a brilliant man.
UC at Berkeley...........................................yeah man............right at home.
An article by Robert Reich.
(God give me the strength to read this shit).

  .... my ass

[clover]

Oh yeah.....the facts aren't facts unless some red neck nazi told them to you...I forgot......the big question is are there really 13.9 million  unemployed.........

http://www.bls.gov/news.release/empsit.nr0.htm

Oh, I forgot....the solution to unemployment is more tax cuts!!!!  the Right wing solution to lowering unemployment since 2003.......

PS-Nnambi asomugha went to Cal...and he can whip your a**

[rykat]

try again tomorrow when the drunken stupor wears off! 

[clover]

Even if I was drunk (which I'm not) it wouldn't change the facts.  Shooting the messenger is the first sign of being delusional

[rykat]

if you find that article enlightening -I feel sorry for you. High school freshman could have written that drivel. MESSAGE? HAHAHAHAAHAHAHAHAH!

[ragman]

See the problem is that what is needed to raise unemployment is against what his base would like him to do, so we sit here without a plan.  With OTO hoping it turns out OK.  He can keep blaming Bush, he can keep saying there isn't a problem, just a bump in the road, there is a problem and OTO not aggressively addressing it is wearing thin.  He has  surrounded himself with people who think that business is evil, that capitalism is evil that making money is vulgar and this is what happens.  I feel the same way today that I did when Jimmy Carter was President.  We managed to dodge  that bullet by retiring Jimmy.  I just hope that the right person can rise to the top and save us again but....... who knows. 

Put political view aside.  What is his policy to get us moving forward economically?  OK tell me.  He is just reacting to what ever the news of the day is.  He is the President and he should lead.  Mike expects Congress to turn everything around in a few months.  Well the opposition party has had complete control, Congress, Senate and Executive branch for his first two years.  What did this accomplish to help save America from this financial calamity?  I rest my case.  Should we just trust him that it will be different if we elect him for 4 more years?  Where is the evidence that he has a master plan and everything is going to be Honky Dory?  Is it his deficit reduction plan?  Is it his energy policy (or lack of)?  Is it his tax policy?  Where the hell is a definitive plan that will bring the USA  and along with it the world out of this dark time.  Will it be placing blame with the last administration, that will help a lot.  I want to see where we are going and some one who has a plan that makes a little sense. 

http://finance.yahoo.com/blogs/daily-ticker/white-house-view-grind-economy-181301928.html

Yes, we can get through this. Eventually. Probably.

That seems to be the economic slogan coming from the White House these days. Nearly 30 months into President Obama's first-term, the markets and the economy are showing signs of fatigue. High unemployment, high gas prices and moderating growth are taking their toll on the national mood and the president's poll numbers. The response at 1600 Pennsylvania Avenue seems to be one of grudging acceptance: The U.S. economy is methodically plowing its way through the post-bust mess, grinding out economic growth one job, one export order, one modified mortgage at a time. And for political and temperamental reasons, the administration isn't going to freak out and roll out a bunch of initiatives that could radically speed that process anytime soon.

[rykat]

"I feel the same way today that I did when Jimmy Carter was President. "

Dead on, Jim
BUT, I dont think we're going to get out of this one because no one on the scene is showing the balls to do what has to be done. Now we have to HOPE they lie well enough to get elected and do what is right afterwards.
Sad situation.

[clover]

Obama can tell the whole nation what he wants to do, but the harsh fact is that legislation begins in Congress.  Obama can spell bind us with his vision......but the implementation of the vision begins in Congress. 

What the article I posted said was that the unemployed and middle class don't have a union or a lobby.  Congress only listens to those that contribute to their coffers. 

While the Repbulicans in Congress spend their time fighting abortion and gay rights the unemployed have grown in numbers.  While they fight to de-fund Social Security, Medicare and Medicaid, the unemployed run out of benefits.

The jobs that have went off shore aren't coming back.

13.9 million people with guns aren't going to obey the rule of law when their kids are starving.

You can blame Obama....but he can't put a bill on the floor, and the GOP budget is about tax cuts.  Huh?   We'll see what happens next I guess