

Jobs figures

Gloomy days in America

More dismal jobs figures

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DrDavis, job protectionism has failed time and again to help set straight any country's economic woes. The only time protectionism has ever helped a country grow economically is when a developing country protects a nascent industry while focusing on a export generated growth strategy (targeting some viable market niche). That set of circumstances certainly doesn't apply to the United States. The United States benefits FAR more from participation in the global economy than it suffers, and protecting domestic jobs would simply mean the a vastly contracted economy and precipitous erosion of our international economic competitiveness. Organized labor is simply wrong in its protectionist demands, and should be told so by Democratic candidates in no-uncertain-terms. Unfortunately, that would be political suicide, and those prone to such gestures never make it to the national arena in the first place.

On the other hand, the displacement of workers due to a dynamic world economy poses a real challenge to the welfare of those displaced, and is a problem to be addressed. Theoretically, the logical solution is to redistribute gains incurred from market shifts to offset the losses, probably in the form of transitioning programs into new and growing industries, programs that should adapt and modify current skills to serve emerging needs. The biggest problem with such programs are the transaction costs involved, but that should not prevent us from seeking viable solutions.


The failed policies in the last seven to eight years have made a long standing problem show its ugly truth. The continued deficit we're running means foreigners have to pitch in to create a balance, meaning we keep borrowing and borrowing. There are two problems we need to deal with: Oil and China. These are main culprits of our trade deficits. We need to reinvent manufacturing in the homeland and come up with some protection measures to revive the good paying jobs we lost to other countries. The US dollar keeps depreciating causing the oil price around the world to skyrocket. Cutting interest rates is a temprary fix that helps banks only, but on the other hand encourages careless financing, which got us to this point to start with. Many European countries have protectionist measures and subsidies helping out the local, and there's no reason why I should work hard to create jobs and future prosperity for the Chinese.
Since the early 1900's, fossil fuel technologies have barely seen any improvements. Once wonders why the heck not?


"Reason"99"What a bunch of yahoos. It's scary that this propoganda is out there. It looks like this is a ecological climate site. If they think the standard of living is lower, the poor are poorer and people are generally worse off than the 70s they must be smoking crack."In relative terms of course they are, THIS IS AN UNDENIABLE FACT! Firstly, employment has become much more precarious in that time, secondly more and more people are working minimum wage jobs with little to no job security, benefits, etc. In a sense, technological development has alleviated the strain of lowering incomes, the temporary deflationary pressures of Chinese manufacturing (which is now being reversed), and easy access to foreign credit enabling the type of asset booms and enabling the American consumer to spend well beyond his means while his wages are not high enough to sustain his consumption. Not to mention that real wages are down from that period of time for minimum wage workers. Oh yes "these yahoos" who use FACTS, and don't resort to the tired old market fundamentalism that less and less people are buying. Stop living in the 90s already! "Think back to how your own family lived in the 70s."Can't I wasn't even born!"How much leisure time did they have, how many cars, how much education, how much had they saved for retirement."Let me ask you, which family are you talking about? You talk about families as if we are all the same, this is again the fallacy of neoclassical thinking, we are not equal, autonomous atoms in this wonderful "market". So again, you refuse to address the issue of "who". "There are so many legitimate studies that blow this study to shame it's not even funny."Of course, and there are alternative studies that show otherwise. It is foolish to think that knowledge production is devoid of ideology and bias. Again...lets get real.   "And yes most of the world is going toward the free market. The economic freedom index is very good."Then why has it been trending downwards at an aggregate? See there is a difference between talking and knowing. "If you want to see the perfect example of how a controlled government style economy works look no further than Venezuela."That's why most of the economy is still in private hands? "This country should be swimming in petro dollars but they are a mess."If I am not mistaken Norwegian government consumes more of its GDP than Venezuela...explain the difference? "Look at countries like Ireland, Australia, Colombia, Mexico, Thailand, Estonia, Peru, Chile. These countries have gone toward the free market and their economies are doing well. "For foreign investors, and domestic capitalist certainly...for the working populations...well since neoliberal reforms in the 1980s and 90s working class people are worse off now than they were back then (refer to GINI index). This is assuming you realize that people who work for a living exist and are not a number on an excel sheet.


Debra: Actually, when the market is operating optimally, the goal of business corporations is, in a sense, "to just break even," since they are competing against other similar organizations offering similar goods and services. The one that cover its costs (including salaries of upper-management) and can offer the highest quality good or service at the lowest price keeps growing at the expense of others, capturing an ever-increasing share of the market. Investors' returns are then in the form of increasing value on their investment, since companies with larger market shares are worth more.

Debra Moniter

You're right, it doesn't make any sense that large companies are trying to make extra profits. What they should do is try to make just enough to break even. I'm sure there would be plenty of upper level management motivated to work for a company where profits aren't really a big deal. But then, if the company's goal is not to profit, why even have management? Why hire anyone? The point is, businesses exist simply because there is incentive to do so. Take away that incentive and no one would be willing to accept the risk of running a company.


The U.S. is a failed state, just like Afghanistan's of the world.

Americans enjoy high standard of living despite their third-world skill levels and education, all because the USD has been the world's reserve currency: print dollars and receive anything in return, without producing anything.

Soon the dollar may not be worth the paper it's printed on, that's the day U.S. will turn into an Africa-like poor country.


DAZIE---->Supply and Demand does dictate a few variables as it relates to the cost of oil, however. The price of oil per barrel is manipulated in order to manipulate the demand for oil when there isn't enough supply. Also note, the bloody oil companies just came out with making $143 billion in PROFIT...what does that say about your supply and demand model as it realates to the greedy oil companies.

Call me paranoid, I beleive that the war was started in Iraq to benefit the crude industry within the USA. I beleive that the price of gas before the war was at, what, $0.92. In order for the Oil industry to increase the price as to where they wanted to my guess is over $5.00 a gallon. Bush decided to start a war. Afterall, how could have he increased prices of oil (his family is involved heavily in the crude industry) along with the rest of the goons without Americans raising a stink. The best way is the create a situation so that it can give them reason (the oil industry in itself co-spiring with each other) and blame it on the war. Okay, if it was the war that is driving costs up as it relates to the price of gas than why did the oil indusry make a profit of $143 BILLION!! If the war caused the rise in gas prices than why the profit?!? And when the Oil industry idiots face congress and then ask for a $1.23 billion pardon on paying tax they say they may face hard times and you don't know. ISN'T THE WAR HARD TIMES? I guess not!


It has made no sense in its most simplest form that the American economy continues to suffer and big business continues to manufacture goods in China, regardless. I do realize that everything isn't as clear cut as merely pulling out of China. I also understand that many Americans are not willing to pay more for their goods and as a result to keep costs low companies manufacture abroad. What I do NOT care for is that the American economy suffers and big business profit margins increase exponentially and they continue to cut wages and outright complain that it isn't enough. The Americans that work within these companies are depleted of their human dignity to some degree and are called upon to do more for less, however. The Good-ole-boy, continues to pad hands, make tons of money in bonus and live the good life. What the H_LL is going on in this world.








It wasn't the Republicans fault per se, but it was partly their responsibility to cut spending (this they failed miserably) and protect consumers from 'fraudulent' lending practices. And what about that dependence on oil that Bush always brings up and that is contributing to inflation? What have the republicans done about that?


So according to some the Republicans caused the recession. Hmmm. How did they do this, I'm curious.

It seems that a credit crunch and real estate crash has more to with it. Both of these were caused by over excuberence which is a natural human emotion but maybe the evil repulicans were conspiring to wreck the economy so the rich would get richer. We went to war because wars always cause recessions????


Wow, there are some nut jobs posting here. During recessions the top 5% lose more wealth during the recession. They own assets that go down in value like real estate, stocks etc. Granted as long as they hold on to them those values will come back. Recessions aren't built into the system but they are natural. Think about if you had to run a mile at top speed, you couldn't you would slow down (i.e. recession) until you caught your breath and then would take off again. The real estate boom we just went through has happened many times, technology bubble, gold rushes etc. When people see there is money to be made they pour in trying to catch the wave driving prices higher and higher but at the same time increasing supplies and as I'm sure you really good economist on this site know is that high supplies cause low prices or a bubble burst.


Inflation and recessions are ONLY a fact of life, because people find in depth study of economics boring, and confusing, and mostly believe that we have a good system, if we only did it right.Inflation and recessions are partly the result of built-in mechanisms in the system itself, compounded by monetary mismanagement, encouraged by the system itself. At the end of each of these inflation-recession cycles, another 2 to 5% of the wealth will have transfered from 90% of the population to the top 5%.The patterns are so visible that I'm surprised the Economist hasn't presented anything coming close to an in-depth analysis of the underlying system, and uncovering that what most people believe to be normal, and expected, is so, only because it is so created.


Job cuts are just a signal of the deepening economic crisis as well as political predicament in the U.S.Things were just bound to go in this way ever since the Republican came to power and led the nation into a series of endless stratigic and global wars.Young people shed blood for the nation, and now more peole get sacked from their jobs.Then who has benefited from the enduring game?
Government indeed reacted frantically with no delay, interest rates cut round after round, which all just helps the government to duck out of its main duty for the whole mess.They are acting rather than reacting sensibly to the thorny situation. Maybe the U.S needs a balance, and something of a retreat from its worldwide stratigy to shift its generous care to people within its territoy , to take their interest into account and stop using militia and politics to wrap up, as it's always preferred ,the economic problems that prop up unnoticeably to warn.


5% unemployment is certainly lower than almost anywhere in Europe, so are the figures really that dismal?


Endless economic growth is neither necessarily sustainable nor desirable, though an economic system which can stabilize without growth, and can continue to refine the distribution of and public use of resources is a necessary component.

Frankly, I'd rather see a retreat from consumer gluttony than an endlessly expanding economy, especially when GDP is still measured only in terms of added value, and ignores the intrinsic value of natural resources before they are mined and harvested. What a wonderful world it would be if people stopped pursuing ownership of every new gadget, and started enjoying a life of ample and delicious nourishment, adequate and comfortable shelter, and plenty of stimulation for the mind and imagination!

Paradise is amazingly inexpensive.


Unfortunately the government does get involved more than they don't. Letting a company fail due to being ineffecient or just plain stupid is a good thing. JP Morgan bought Bear Stearns for $2.00 per share, a 98% decrease in their price from a year ago. They essentially failed. This was done to stop a bank risk or what Bernake calls "systemic risk" and he did the right thing. By the way The Federal Reserve Bank is not part of the government they are part of the banking system.

Ohio has a bad economy for many reasons. Farmers and oil men weren't doing too good in the past but look how they are doing now.


"The fundamental questions aren't being asked, good for whom? A recent survey trying to measure the total well-being of the average American proves that the United States has been in a perpetual recession since 1975:"

I went to the website http://www.rprogress.org/sustainability_indicators/genuine_progress_indi... I'll tell you what I had a great laugh. What a bunch of yahoos. It's scary that this propoganda is out there. It looks like this is a ecological climate site. If they think the standard of living is lower, the poor are poorer and people are generally worse off than the 70s they must be smoking crack. Think back to how your own family lived in the 70s. How much leisure time did they have, how many cars, how much education, how much had they saved for retirement. There are so many legitimate studies that blow this study to shame it's not even funny.

And yes most of the world is going toward the free market. The economic freedom index is very good. Russia, India and China don't score well but compared to where they were 20 years ago they are radically different. If you want to see the perfect example of how a controlled government style economy works look no further than Venezuela. This country should be swimming in petro dollars but they are a mess. Shortages due to price controls and they have had a brain drain. Look at countries like Ireland, Australia, Colombia, Mexico, Thailand, Estonia, Peru, Chile. These countries have gone toward the free market and their economies are doing well.

unsinkable titanic

Bernake says he believes in a strong dollar and a quick return to US growth. I believe in the tooth fairy. The admitted deficit for 2008 projected at 500 billion, trade


This is beginning of the end of our dominant position at the top. This should be a clear warning sign to America that the future remains bleak in the long run. Im not saying all is lost, I doubt we'll see another Great Depression unless we run out of oil before its projected. Much improvements in areas such as education and renewable energy can pump new blood into America, lower interest rates are only a band aid (stop the bleeding) not the final solution. I've also heard that the " " is that companies such as Airbus are thinking about opening factories in the U.S. to take advantage of the weak dollar. How long is that going to take to get it up and running? While the recession may not last years, we should not get comfortable. In my opinion, "wealth" like energy is neither created or destroyed. Just look at the "battle" for Antarctica. The U.S had already reached its full potential or maybe a little room to grow, but not much. After all we do have some oil off Alaska/Gulf of Mexico don't we? America has failed to internationalize its citizens for the 21st Century, especially the Midwest. Other countries have yet to reach their full potential(BRIC), thus the correct devaluation of the dollar. But don't worry, in the end, there we will be three main currencies (USD, Euro, CNY). We will still have some power in world economics but not as much. The faster the U.S. builds its coalition in its hemisphere, the better, before the Chinese buy our backyard (Latin America). It's time to reexamine the FTAA, a step closer to the Americas adopting a single currency, hopefully the USD.This is a phenomenon no one here has seen before, probably since the fall of the Roman empire. Let's face it no one can stay to the world's sole superpower forever. We all knew this time would come sooner or later, personally just not so soon. We Americans dug our own graves, spending too much money we take in (A negative savings rate!!!) Saving money is possibly the only way to get out of this mess (forced savings anyone? ie. Singapore). To all those who already have jobs, take the first assignment you can overseas. For those who don't, look for one. Hope to see you in China. America has lost its monopoly on the world economy, let's just hope the rest of the world doesn't forget about us.


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