Skip to comments.IT'S OFFICIAL: We're Falling Into A Double-Dip Recession
Posted on 06/04/2010 8:26:50 AM PDT by blam
IT'S OFFICIAL: We're Falling Into A Double-Dip Recession
Jun. 4, 2010, 10:52 AM
Were 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). Thats 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, dont have the dough. They cant any longer treat their homes as ATMs, as they did before the Great Recession.
Businesses wont rehire if theres not enough demand for their goods and services.
The only reason the economy isnt 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 cant 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).
(Excerpt) Read more at businessinsider.com ...
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 isnt 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.
The urban blue zones are failing. Meanwhile out here in flyover country the corner has been turned. There is new construction both residential and commercial. Several, but not all stalled projects are restarted. Houses are selling albeit not at former rates but prices are above ‘08 levels.
Oh, I think I see what you're saying. So, I don't have enough money or confidence to buy anything more than the bare minimum I need to keep going. Moreover, some debts have gone sour because I MUST get some money in the bank for emergencies. This creates the deflationary pressure. The government then prints a bunch of money and gives it to the unions, Wall Street bankers, and State Governments. This is inflationary. But *I* still don't have any money, and now my taxes and fees are pushing up. This is how we get stagflation - or something new. Inflation and deflation at the same time.
mmmm.... mmmmm.... mmmmm...
Double dip recession my royal backside, we are heading into the Obama DEPRESSION!
I’m actually looking forward to the collapse of the government. We’ll be able to peacfully pick up the pieces.
Wow, Robert Reich said this? I wonder what Obama did to piss him off.
Robert Reich is a CLINTON Man ... just consider this a “targeting shot” by Bill and Hilliary ... getting her ready for a the 2012 run ...
Congress and the administration made a major economic policy error when they passed the health care “reform” bill. That bill created huge uncertainty about future health care costs for business, which has essentially caused a hiring freeze in all but the biggest and most profitable corporations. The democrats couldn’t have written a more economically destructive piece of legislation and then passed it at the worst possible time, just as the economy is struggling to emerge from a recession.
I heard an interview with a Fortune 500 CEO who had lunch with Obama and told him that the health care bill was going to damage our economy. The CEO said Obama’s reaction was essentially to tell the CEO that he was lying about the economic impact of this legislation. That response from Obama shows that the White House and democrat congressional leaders have no understanding of how government regulations and taxation affect the private sector. They think the private sector just keeps rolling along and hiring lots of people regardless of government policies, and that is just not true. Government policy has a big impact on private sector hiring and economic growth. Government policy is the main reason why socialist Europe is in such a mess right now and why we’re having a real struggle to get out of this recession.
We’re approaching a turning point soon where the economy is either going to continue to grow slowly or it’s going to fall back into a double-dip recession. Economic indicators are mixed and inconclusive lately, but a strong recovery is looking increasingly unlikely.
That is what I said too...Hillary takes the first of many knives out...this one is going to send waves...be sure to add to the current and share this with everyone.
I doubt that Reich is out to get Obama. He’s trying to prevent bigger economic problems for the dems by calling for more deficit spending in the short term and deficit reduction in the long run.
I think the best thing congress could do for our economy is to admit that they made a big mistake and just repeal the entire health care “reform” bill immediately. That would remove a huge cloud of uncertainty over the private sector about future tax increases and health care costs.
Job prosperity wont return until the jobs and factories exported by both parties are restored. Tax cuts and green jobs are placebos. If American companies want to invest throughout the world to take advantage of cheaper labor and environmental standards, we have to reduce our standard of living to meet the lowest competition or tax the hell out of foreign imports so as to make them uneconomical. Yes it will raise prices. So what - people will make the money to afford. Lower prices and lower jobs is no solution.
Has the collapse of any government ever resulted in people "peacefully" picking up the pieces ?
that’s basically it. as I see it anyways. There are deflationary forces intrinsic to the free market that will not be reversed by increases in the monetary supply, especially not the way they’re injecting the money into the system. This “bailout” was a robbery, not a bailout and now they’re going to try to do it again. BOHICA
Even if it doesn’t actually decline the effect is the same, we have more young people every month looking for their first job and not finding it. There are more unemployed college graduates now than unemployed high school dropouts.
Temporary census jobs accounted for 411,000 of the May increase in payrolls. What happens when all these 'temporary' jobs stop, do they all go on unemployment? - - which gets extended, and extended... Government jobs have accounted for the majority of job increase.
Very true. I think there is about 4 million high school grads, or 18 year olds, each year, so, unless 4 million die each year we had better gain 4 million jobs.
You beat me to it.
Shorty wrote this? Wow.
Census jobs and stim jobs.
Both will fade in the summer heat.....
Also with Obamacare costs, cap & trade energy costs, local & state taxes going up, the Bush tax cuts expiring...there is certainly no reason/way to hire new people. Also, the motivation to start a business, with all those things looming, is gone.
I don't know. Probably not. All that aside, I think people would actually live thier lives with more intensity without the entrapments of our current society. Gee, without electricity the video games and televisions would go dead. They'd have to join real life. They'd literally have to fight for a living. Sounds nice, except that I'm too old.
Whoops, probably no ‘unemployment’ benefits for temp workers....
Is that Obama’s
“TAR BABY” top scoop up there?
Lol, you keep thinking about tar babies.
I was thinking of double, triple, etc, dips.
Val coming soon
The new “BARACKY ROAD”
“BARACK HOLE” once worked a few days in his youth in an ice cream shop -
Better get snacks ready!
No snacks, just had dinner
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