Posted on 10/03/2009 5:50:20 AM PDT by TigerLikesRooster
The Ugly Job Loss Chart Keeps Getting Uglier
John Carney|Oct. 2, 2009, 5:10 PM | 1,538 |9
Catherine Rampell at Economix has updated this miserable chart, showing job losses in this recession compared to recent ones (expressed as a percentage of peak employment).
The dark blue line that just keeps heading down represents current recession. Since the official start of the recession in December 2007, the economy has had a net loss of about 5.2 percent of its nonfarm payroll jobs.
The horizontal axis measures the number of months since the recession started. The vertical axis measures the share of pre-recession jobs that still exist.
(Excerpt) Read more at businessinsider.com ...
Someone please explain to me how this is different than a depression.
Gee that’s a bad trajectory.
Good thing we had the Porkulus.
What would make sense is a $1000 tax credit to business who hire new employees to cover training and hiring costs. Add to that a renewal of the Bush tax cuts to provide business with long term incentives to invest and spend and the economy will get moving again.
What all this govt intervention is doing is causing business, and capital, to hunker down in a bunker mentality wondering what new Govt boondoggle they are going to be told to pay for.
The problem is lack of jobs, the solution is to incentives the 10s of thousands of businesses around the country to hire a few people.
That is a long term solution that also provides immediate short term gains.
Lucky for Obama that the MSM has lost it’s ability to read a chart...
In the spirit of ‘getting with the program’, I’m thinking about starting to believe Obama/Bernanke/Punditry instead of my lying eyes...
“THE RECESSION IS OVER!!!!”
/completely gratuitous ‘sarc’ tag...
Wait till the cuts from the failed Saturn deal start showing up. A couple thousand actual Saturn workers and 3 or 4 times as many related industry workers will be out of work.
Look folks, until 0bummerCare, Cap and Tax, forced unionization, Porkulus continuation, money supply blowout, and other Tax Increases are defeated, get the hell out of U.S. Investments.
We have possibly the worst investment climate this side of Zimbabwe.
Until 0bummer is soundly defeated, capital should flee, nobody should hire, and we should all grow vegetables.
Who is going to hire in that climate?
Well, that’s darned frightening, isn’t it?
I’d like to see a similar chart of the Great Depression for comparison.
bookmark
The problem is, if the Dems are successful at Health Care reform, cap and trade, and tax increases, then that $1,000 is a pittance.
Your idea would be sound in an earlier age. But as long as the Dems are hard at work trying to kill the American economy as we know it, I just can't see any company hiring other than to replace key departures - no real job growth.
Good point.
It’s interesting to see how quickly the curves reverse when a real recovery starts.
more like “used to” I guess.
And many of the kahunas in the Republican Party who find Sarah Palin far more threatening than 10% unemployment.
What's going on is that the Chicago crowd running things DO NOT KNOW HOW TO RUN THINGS.
It's not that they wouldn't like to run things, or that they want everybody to be poor and downtrodden ~ their problem is they just don't know how to do it.
Nor are they capable of learning.
Do you know if this graph takes into account the changes in methodology of counting the unemployed over the time period?
I read somewhere that if unemployment was measured the same way as back in the 1930’s we’d be over 20%. Not as bad as the depression era, but getting close.
YES, BUT DOES THIS TAKE INTO ACCOUNT THE ELEVENTY QUINTRILLION JOBS THAT HAVE BEEN “SAVED”?
Well, does it????
Notice how the socialist countries of Europe, unemployment seems to sit at about 10-12% forever ... They bottom out and stay.
Which is because simply spending money is not the same thing as productive economic activity.
I think this might be different because many of the jobs being lost were never real jobs to begin with. The non-jobs really began in the Dot.Bomb bubble:
Get capital, start a business.
Hire someone to do the work.
That someone hires a staff to do the work.
Those people hire employees to do the work.
Consider Amway-like operations.
One person makes soap. Fifty levels of people sell it.
A "Service Economy" became a trendy buzzword, but it did not change the fact that someone had to make something sometime.
Now add the this the fake jobs in the Mortgage business in the '80's bubble, wherein everyone became a broker or salesman, and the fake jobs trading fake securities recently, and it begins to appear we had a large number of people employed in imaginary industries, doing jobs that were themselves imaginary.
To add further impact, many of these imaginary jobs were well-compensated.
People need to continuously contact the White House and DEMAND that the president focus on JOBS. Give suggestions as to what needs to be done. ;-)
Agree. Who would want to start a business in this country with its hostile business climate? High taxation, excessive government regulations, thuggish unions, onerous environmental laws, a disappearing work ethic, etc.
1. Renew the Bush tax cuts to encourage businesses to expand.
2. Offer a $1000 per new employee tax credit to business to cover the hiring and training costs.
3. Kill cap and trade, health care reform and all the other boodgoggle anti capitalism bills currently being considered in the Congress. Have 0 vow to veto any legislation that will cost real current US jobs with vague promises about imaginary “Green” job in the future.
4. Pass the Developing America’s Resources act to remove all bottlenecks and obstacles in our Government regulation that is blocking development all US energy resources and end our dependency on imported energy.
What all this govt intervention is doing is causing business, and capital, to hunker down in a bunker mentality wondering what new Govt boondoggle they are going to be told to pay for.
The problem is lack of jobs, the solution is to incentives the 10s of thousands of businesses around the country to hire a few people and create new jobs by eliminating Govt regulations that prevent us from doing things to develop our own energy resources.
These are long term solution that also provides immediate short term gains.
EXACTLY RIGHT. Then add to that the army of people doing "government work", a lot of which is simply process oriented (i.e., pushing paper).
Very good post.
Excellent list!
They also need to end capital gains taxes....to stimulate investment.
I will add that to future lists of things to be done. Thank you
When your neighbor is out of work its a recession. When YOU are out of work its a depression.
Here is a chart that goes back to 1948:
Thank you.
Shows how little I know. I didn’t realize there’d been a recession in 1948.
Still, I think a comparison to the Great Depression would be intruiging and informative. Are we in a recession only, or does the unemployment curve signal something worse?
Oh. Then it's a depression.
The chart shows the 2001 recession ending in 2005. But wasn’t that artificial? In 2005 we were at about the peak of all the irresponsible real estate lending.
If it weren't for chronic welfare and unemployment insurance payments and two earner families, we would be seeing bread lines all over America. A lot of people out of work aren't even counted in these numbers. Our youngest son and his family living with us while desperately looking for work is a personal example.
Everything the fools in Washington are doing to "solve" this problem is making it worse. When the borrowed money inevitably runs out and the runaway inflation kicks in, we will be seeing bread lines, bloody riots, and perhaps massive civil strife.
I agree. If you were a contractor, as my husband was, you don’t get unemployment and thus wasn’t counted as unemployed. Women who lost jobs and found that they broke even with childcare at new pay rates and thus stayed home with kids didn’t count as unemployed.
That's a racist question. Stop it. /s
This shipping chart is a leading indicator, it looks to be forming a 'W'.
Great chart! I saved it to use in a “one-page poster” for TEA party use.
Yeah! Just imagine how bad things would be if we didn't have Porkulus, CFC, the imminent doubling or tripling our energy prices and the communization of health care. Thank God Dear Leader knows how to lead us out of the wilderness. Praise Be Dear Leader.
You’re right — that dot.com bubble was completely worthless. Surviving companies like Google, Amazon, eBay, Yahoo, Skype, et al don’t employ any people and haven’t done anything to remove friction from markets, improve operating efficiency or provide abundance at low cost to all of us. Nope. Nothing accomplished there at all.
5. Make Bush tax cuts permanent
6. Enact a holiday on capital gains taxes
7. Kill public sector unions. Stop the resurgence of other labor unions.
8. Stop chasing elusive "green" energy
Economic Depression
Considered a rare and extreme form of recession, a depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression.
That would make too much sense. The current administration is only interested in taxing us to death.
You know I am not talking about the surviving companies. F****D Company.com chronicalled examples of the majority who failed.
Let's look at how it started...The Netscape IPO. Based on a product that was given away free, and had no sales. Phantom dollars were generated by speculation and it worked so well it created an industry. Of vapor.
"Democrats took control of the House and Senate after 12 years of nearly unbroken Republican rule"
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