Unemployment will be at 7% by the end of the year.
Next year the jobless rate will be 10%.
Count on it!
Hard times ahead.
Batten down the hatches.
Economic hardship will hit every American and which will then become
a Global Depression. : (
Folks listen up. just read the jobless report for the US. We need to let our repersentives know that November is coming and unless they do something about this mess they signed us up for they too will be looking for a job. World greed put us in this jam and leading the pack are our elected officals If you let him/her keep their jobs and you loose your and do nothing about it, them you should loose yours.
Corporate should be nervous.
1. all good manufactureing jobs went overseas.Can’t make money can’t spend money.
2.Wall street got greedy, They demand 10 % over last years net returns. Its call growth, and the bubble just burst.
3.corporate income has always been a fight of either paying workers or paying wall street. Thats been solved by hireing illagle workers,or makeing stuff overseas, less for workes more for for wall street,no money for the worker to spend, because no good paying jobs any more.
4.When was the last time you saw a sign at Wall Mart that says MADE IN THE USA?
Would you like to see it get worse ? Vote for a Democrat for president in 2008. By the end of 2010, millions more will lose their jobs. Why would a business want to fork over more to the FED ? And if the Bush tax cuts expire ? When is the last time a poor person making 30 K a year gave you a good job with benefits ? WOW ! We need to wake up in the US, NOW ! DRILL HERE, DRILL NOW, SAVE MORE
I would like nothing more than to see Wall-Streeter’s lose jobs, money and homes. It is quite likely the only thing that would motivate any of them to acknowledge what the rest of the nation has known for the past two years.
What people don’t understand is that it’s the dependency of oil that is about to bring this economy to it’s knees. Everything we touch is dependent on the use of oil. All it will take is one terrorist attack on a depot and the oil prices will sky rocket forcing American companies to lay off thousands because we can’t afford the price of the goods anymore. The politicians worry about national security when the real threat to our country is our dependency on crude.
People are questioning how a loss of 48,000 jobs results in an increase in the unemployment rate of .5%
This is for two reasons. 1) The work force gets bigger every month. Some say by 150,000. So if total jobs remained constant, unemployment rates would rise.
2) The numbers are calculated in different unrelated ways. So depending on sampling, they might not agree with each other on any given report.
Just for the record though, I also believe the numbers are massaged way too much to reflect the reality of an average American. News flash: The government lies.
Mr. LaMonica is correct: it *is* good for individuals’ wages and salaries to at least keep pace with inflation. But the profits to pay wages and salaries have to be created *before* they can be paid out. So the more fundamental issues are a) the cause of profits – productivity, and b) the destroyer of profits – our government’s policy mix (Fed, Treasury, tax, and regulatory).
Thanks to the virtues of so many Americans – from janitors to CEOs – productivity gains continue – in many cases, superbly well.
But what’s sad is that our government-school-induced mass ignorance of economics continues to lead us like lambs to the slaughter. During the Greenspan Fed’s 18 years, 47% of the dollar’s value (your and my savings) was destroyed. Fed-created credit has always been phony credit – resulting from whims – not real sustainable production. Likewise, the Fed’s claims of “raising rates to fight inflation” are a false smokescreen – their rate increases *cause* price levels to rise (see the stats since 1913).
For nearly the entire 19th century under *free* banking, the value of our money objectively mirrored our real, true gains in productivity – resulting in a one-hundred year trend of falling price levels, rising profits, and rising real wages.
Central banking must be abolished so that the value of our money can again be objective, healthy and stable – set by millions of un-coerced buyers and sellers each day.
Until the Fed is abolished, the value or our money remains barbarically subjective – set by the ever-shifting whims of 12 thieves who meet behind closed Fed doors eight times per year.
CEO’s are stessesd. HA!
Just read the other CNN “pizza Economy” story. I was currious to see how much the CEO of Dominos made. His SALARY is $750K (like that isn’t enough) but his total 2007 compensation was $14,000,000. Is that freaking nuts or what?!?! A pizza company for craps sake. He’s not inventing a cure for cancer. He’s busy whiping on pizza franchises who aren’t productive enough because thier raw material csts are skyrocketing.
PLUS he’s on the boards of like 6 other companies. Where does the man find time! (tongue in cheek) What a “good ole boy” RACKET.
Price of Crude Jobless Rate
130 5.5%
140 6.5%
150 7.5%
160 8.5%
170 10.0%
180 and above 20% and above
The chickens are coming home to roost. What with $4+ per gallon gasoline, the corporate offshoring of jobs, and the finance industry fleecing the average American, this should come as no surprise. At long last we possess the political will to make changes. Vote No to a third Bush term. The Republicans claim to be experts on both the Economy and National Defense but have made a complete hash of both.
So, the greedy CEO’s are the ones causing the problem. Let’s see. I just looked – a CEO of a fairly sizable company makes $1.8M/year. The company he runs is about 10,000 people. Let’s say he agress to work for free anf give his salary to his employees – $1.8M/10,000=$180/year, before taxes, FICA and such. Let’s say all the upper management decides they had enough of this BS – you can have our salaries, and you can run the company as you want. Each of the employees will get an extra $1K/year, the company wil get out of business in a few months (they don’t pay CEO’s for nothing, you know), and everyone will be happy.
its gonna get worse before it gets better. The Gov’t is to blame for most of this mess. BUT…. These big shots in corporate America, who send jobs over seas, should take some of the blame. CEO’s do not share the same stress as the rest us of. Their bank accounts are bigger than anyone reading this story. Then again, their is a group of people who have it worse than any of us; they are the 911 workers. We show know by now that the Gov’t does not stand beside its people. they only stand beside the rich and the one’s who hold the power in this country (insurance org, hedge fund mgrs, and the chinese). How fast did it take for the United States to kneel down to so few people.
Does not matter who runs this country next, the lobyists will tell the PRESIDENT and GOVERNMENT what to do and how fast to do it.
To Paul LaMonica
Would you please write about the Long Term Unemployed who have become helpless victims of America’s Exported Economy. America has been in a Recession since the Market Crash of 2000 and is on the fast track to a Depression. The millions of Long Term Unemployed are NOT included in government statistics. Please do a survey!
America is on the path to 1929.
The long and the short of it is that the US economy is dependent upon consumer spending. Make no mistake, the last 6 months of steadily increasing gasoline prices were absorbed to a large extent by consumers “temporarily” adjusting household budgets. The longer term however is much different in my view. IF, as many predict, our gasoline costs maintain at $4 per gallon or increase further, we will see precipitous fall-off in consumer spending. At that point, when combined with the disastrous housing market, tough credit conditions and huge government and individual debt burdens, the economy will sag much faster and further. I continue to believe that we are on the FRONT END of a very serious and long lasting recession, not at the mid point of a shallow correction.
It’s all about the debt. The debt at all levels (government, business, and consumer) is at record levels. The debt is largely due to an irresponsible Federal Reserve which allowed two back-to-back economic bubbles. The end result will be a major economic depression.
Well what do these big corporations expect to happen to the economy when the prices of their products are far above what anyone can afford because they aren’t being paid enough money to buy them? Pay the workers what they deserve and everybody stays happy. But when you deprive your workers, your businss is hurt in the long-term. Some companies don’t think these issues will affect them directly but it’s now evident that it does. But no one will listen. The price of gas is well over $4.00 and all a McDonald’s worker can get is $7.15 an hour when the CEOs at top make millions and billions of dollars a year. Hmph. No wonder this nation is suffering. The people who make these rules are practically depriving these people of life.
Besides that, no matter who is in office, the President of the US doesn’t control inflation rates or the distribution of money. Blame the Federal Reserve for the bulk of this mess.
President Obama will inherit a failed war in Iraq, a deficit which will involve selling off all America’s assets and a depression…the alternative: McBush, who insists the Iraq war is fine, the economy is not in trouble which is good because he says “he knows nothing about the economy”…I am REALLY glad gas prices,jobs,and health care aren’t an issue for mcbush…he really has his pulse on the American citizen….. McBush ‘08
Corporate Am is getting nervious because they have not been taking care of Business fundimentals – they have been taking care of their personnal fundimental$$. The spending and expansions are occurring “outside” the US; not a good foundation for jobs.
The proposal to heavily tax exporting of jobs and greatly reduce the tax for retension of jobs is a step is the correct direction; the Gov’t isn’t dictating where one desires to expand, but if it’s not here then pay up.
Not many companies will move their entire organization to another Country regardless of the noise they make about because honestly the CEO will loose his position as well. Seems other countries have stricter rules on how companies are run – go figure.
CEO’s also need a Lux. Tax applied to encourage better financial stratagies – say an additional 35% to 50% of gross including options, plane rides, etc. for income above the 10x’s the average earner in that organization. The rest of the world finds leaders that survive on the 10x’s the average – ever hear of Toyota or Honda?
If the CEO’s balk, I hear India and China have some very good and COST EFFECTIVE tallent for their positions as well – one head reduction saves $50M +; what are the boards thinking? There are 500 people (Fortune 500) Plus another say 2 – 3x’s that directly affected by this vs a few million who do not share in those rewards; yet some how the few million seem to continually loose out.
People talk about change, well there are some suggestions that get to the root of the problem. The problem is the change won’t occur because 98% of the AM population is afraid that the 2% who “Hold the Wealth” will make matters worse – can they really make it worse?
We Need to Wake Up and become involved in our dear Gov’t who only responds to pressure!
The economy’s slow, but it’s probably bottoming right now, so it shouldn’t get much worse, if at all. We’ll have a very slow, bumpy recovery over the next 3 to 5 years.
Since the end of March, we’ve noticed a slowdown in customer activity, as they now have trouble getting development financing for projects. Even though there is demand for our and their products and services, if they can’t finance it, we all wait. In this situation, that’s the right decision.
The root of the problem is that many billions (or trillions) of $$$ were squandered in real estate development from 2001 – 2006, and much of that property is rapidly being abandoned, left empty, as the borrowers and lenders just walk away. We need that money for productive investment now, but it’s gone. Taking of all of these write-downs and fixing this will take time.
I’ve been unemployed since Jan 2nd in the central va area as a bookkeeper. Between Jan-Mar, I have one job interview and questioned the interviewer who had 300 applicants. Since then I’ve had 5 more interview but have not been able to land a job. It’s the worse I’ve seen it in my lifetime. I usually can work in any type of business and usually it doesn’t take me long to get a job. I own a house and don’t want to become a statistic. I’m spending my 401k money to keep my head above water. Unemployment will end in July and I’m terrified. I’m a single parent who doesn’t want to become homeless with a child
lol just did the math a loss of 49,000 jobs causes a 0.5 increase in the unemployment rate this means the entire labor force is only 9,800,000 which means of the 154,000,000 Americans old enough to work only 6 percent are working. This means unemployment is at 94 percent.
LOL the government people give us these silly numbers that have no meaning as they know they never taught us how to analysis numbers in school.
As long as the US government allows the shipping of our jobs to the Chinese at slave labor wages, the US is doomed. What do the idiot CEO’s think? They cut wages, close factories and ship jobs to communist China, all in the name of increasing their greed driven corporate quarterly profits so they can receive bigger bonuses, we as a nation are done. Done in by greed and immorality. And by the way, make sure we the people all continue to support our states politicians who continue to sell us down the river to big business. When is enough enough? Most CEO’s are anti-patriotic, greed driven loosers who care nothing about the state of our country. It should always have been America first! Now it may be to late.
It won’t get worse at all! Thankfully I’ve read your previous posts about now’s the time to invest and every cloud has a palladium lining! (Better return than silver) Coming up roses!
Why would CEO’s be stressed?!?!?! At the small, 40 person manufacturing company I work for I had my pay cut 25% 1-1/2 years ago and the 4 partners JUST got back from a week long golf outting at Pebble Beach!!!!!!!!! One of the partners bought a desk lamp made from a car crankshaft for $500!!!!!!! Thats groceries for my family of 5 for a MONTH! Oh, and he just started wearing his new Rolex Millgauss to Monday morning meetings. Almost knocks the freaking wind outta me everytime I see it.
Again I ask, why would CEO’s feel stressed. Just cut some more jobs or wages to pay for the new Land Rover. Whats the problem?
Posted By James, Detroit MI : June 6, 2008 11:12 am
ANSWER : They are stressed as they do not have anymore jobs but their own to send over to China or India. The next cut in the work force will be them.
After all does it make any sense to keep a CEO who is ownly making 150,000,000 a year because he sent 50,000 America jobs overseas? If you get rid of him to and out source his job for $20,000 a year the company can make another $149,980,000 dollars a year more.
This time it’s their jobs on the cutting block.
t’s a common urban legend that only those who are looking for work or getting unemployment benefits are counted. If that were the case the official rate would look a lot lower than it really is, and that’s exactly why the Bureau of Labor Statistics doesn’t do it that way.
See
http://www.factcheck.org/askfactcheck/does_the_official_jobless_rate_fail_to.html
Poor, overstreesed CEOs……the poor babies!! I guess they will just have to pack up their multi-million buck retirement packages and head for the hills
The fact that the multitude of problems our so-called “economy” has are only NOW hitting their radar screens, makes you want to laugh and cry at the same time…….
Anyone with half a brain cell that actually went out there and looked at what was happening, instead of hanging around the country club could have seen this coming a long time ago.
LOL the situation is very bad the government has been playing games with the numbers for years now. Just how can a drop of only 49,000 jobs move the unemployment rate from 5 percent to 5.5 percent in a work force of 154 million people? That move would take 770,000 jobs being lost in one month more if other jobs were being created.
Plus they are lying about wages going up. Hours worked each week is going done and the average wage for people making less than $80,000 a year is going done so how can they say income rose by 0.3 percent last month when in reality all of the gain was with people making more than $80,000 a year?
It’s time the government counts the people who have fallen out of the unemployment roles as in the work force and admit the unemployment rate is in the range of 8 to 10 percent.
I quess Enron learned to lie from the best the U.S. Government. After all we told the Indians five times we would never take this piece of land from them and each time we made that deal we broke it.
Much Much Worse!
We are spiraling into a full-scale depression that will last a decade. I thank God I have a government job.
The unemployment problem is only going to grow. Were the Department of Labor reporting honest figures, we’d see a real current unemployment rate of between 10% and 13%.
The economy has only started its downward slide. The mortgage and capital crisis has not yet hit bottom and we’ve been hit again with soaring energy prices. This is beginng to pull down every sector.
Consumers, as CNN Money is reporting, are still spending money they don’t have and that is going to come to a grinding halt before the end of summer. They simply will tap out all their reserves. This will precipitate a crisis in the consumer credit industry and another liquidity problem, since investors are doing the same thing with consumer credit as they did with mortgages and the value is appoximately the same.
We can only hope that the Dollar’s slide ends soon. Any further weakening of it will only make the recession deepen and if it falls too low, may trigger a global depression. The U.S. owes foreign governments unbelievable amounts of money. The value of those investments is plummeting, so our access to cash is in jeopardy. If the government cannot borrow money, they can’t spend money either and during a recession, the government must invest heavily in order to stimulate the economy.
So, yeah, everyone should be very nervous right now.
Will the economy be losing jobs? Is this a trick question?
70% of our economy, I believe, is consumer spending. Even the numbers that say consumers are slowing down belie the whole story. Those numbers include the fact that gas and food cost more money for the same thing. Small retail outlets are dropping like flies. Consumers are tapped out. The purchase of non-needed items is slowing very rapidly and people’s view of what they need is changing fast.
70% of our economy. It isn’t just the clerk losing a job when people start to forgo new dress shoes. Its truckers and shippers and importers and dock workers and maybe even a tiny bit of manufacturing.
The 800# gorilla is still sitting in our living room. The American consumer has run out of money.
How much worse? Considerably worse. Numbers are getting harder to assess when you consider discouraged people not looking any more for jobs; under-employed people; grads not yet landing their first job; and, people forced to work 2 or more low-level jobs after losing good ones. But in a nutshell, the job situation will get as bad as the end of the 70’s and early 80’s. I hope it stops there…
After the gov’t lays off 25% of their employees, then the private sector can think about restaffing.
Why would CEO’s be stressed?!?!?! At the small, 40 person manufacturing company I work for I had my pay cut 25% 1-1/2 years ago and the 4 partners JUST got back from a week long golf outting at Pebble Beach!!!!!!!!! One of the partners bought a desk lamp made from a car crankshaft for $500!!!!!!! Thats groceries for my family of 5 for a MONTH! Oh, and he just started wearing his new Rolex Millgauss to Monday morning meetings. Almost knocks the freaking wind outta me everytime I see it.
Again I ask, why would CEO’s feel stressed. Just cut some more jobs or wages to pay for the new Land Rover. Whats the problem?
The underlying causes for our economic performance have not been addressed. These political decisions and the rules/procedures we currently live under are still in place. What we are doing now – doing the same thing but expecting a different result – is a fair definiation of insanity. Until we truly make some fundamental changes, we will continue to experience the same issues we currently have, just on various scales. I personally expect things to get much worse before the pain finally reaches a stage where fundamental change will be acceptable.
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Trace some of our woes to the flagrant squandering of oil. Businesses and consumers are reeling from the high cost of energy, primarily gasoline. When are we going to get serious about sending our money over to the Middle East? If we weren’t sending billions over there we wouldn’t be concerned about Iran. They would be the 90lb weakling. Start taxing gas heavily over a phase in period and rebate taxes based on a average use.