More jobs would boost our mood
A three-day weekend is nothing to sneeze at, but this year's Labor Day could be better.
Labor Day, first celebrated in 1882 and a federal holiday since 1894, is a great American holiday, an official celebration of the American labor movement and an unofficial acknowledgement of the end of summer.
In this great country, there is much to celebrate — freedom, democracy, family and friends. But there also is a dark cloud hanging over Labor Day 2011 — an insufficiency of jobs for those who want and need to work.
The U.S. economy, under the gun since the housing bubble burst in 2008, remains in the doldrums, a problem best reflected in the unemployment numbers.
They are a far cry from the Great Depression when President Franklin Roosevelt spoke movingly of seeing one-third of a nation ill-housed, ill-clad and ill-fed. But by modern standards, they are grim nonetheless and, most disappointingly, show little sign of improvement.
Indeed, the economy is showing signs of getting worse.
The national unemployment rate is 9.1 percent, a figure that represents millions of individuals and families struggling to get by. Broken down by worker groups, they tell a more disturbing story of unemployment — 25 percent for teens, 16.7 percent for blacks, 11.3 for Hispanics, 8.9 percent for white males and 8 percent for white females. Faring best in this litany of despair are Asians, who have unemployment rate of 7.1 percent.
Even more disturbing are the number of long-term unemployed. History has shown that workers who are unemployed one month often get work the next. But the 6 million long-term unemployed (27 weeks or greater) account for more than 42 percent of the total.
In Illinois, Champaign County has a historically high unemployment rate of 7.2 percent. But it's worse elsewhere, 9 percent in Cook County, 11.2 percent in Kankakee County, 11.8 percent in Northern Illinois' Winnebago County and 10.2 percent in southern Illinois' Alexander County.
The U.S. economy still represents an incredible job-producing machine, but it's not producing new jobs fast enough to keep up with a growing labor force of 153.6 million.
The U.S. needs to produce 250,000 jobs a month to bring the unemployment rate down. Instead, the private sector added just 17,000 jobs in August compared with 156,000 in July and 75,000 in June. In other words, the unemployment problem is growing worse, not better.
President Obama plans to speak to the nation Thursday about the lagging economy. News reports indicate he will propose tax cuts, more stimulus spending and a slow-down in federal regulations identified as disincentives to job creation.
But his nearly $800 billion stimulus package of 2009 did not have the promised effect. He's already tried temporary Social Security cuts for American workers.
Meanwhile, when he's not urging tax cuts, either through Social Security or extension of the Bush-era reductions, he's proposing tax increases, a highly dangerous move in a slow economy.
President Obama faces a terrible dilemma. He's fired many arrows, but now his quiver looks to be empty. Clearly, his stimulus-based spending has not kept the unemployment rate under 8 percent, as was predicted, while Obamacare, his massive expansion of the government into the health care business, has spread so much uncertainty among potential entrepreneurs and employers that they're keeping their money on the sidelines.
That's why our future prospects are so grim. The Obama administration said last week the unemployment rate will remain substantially as it is now well into 2012. Private forecasters are even more pessimistic, suggesting the slow-growing economy may fall back into recession.
America always has managed to find its way back to prosperity, and it will do so again. But there's considerably less cause for celebration this year and rough seas dead ahead.
Well gee whiz.... Let's elect Rick Perry, or Sarah Palin, or .........? The current President inherited two wars, and a failed economy from George, the II. He has been in office three years now. He has been fought tooth, and nail by the Right Wing. One small group of house representatives have spun the economy into more of a decline. Does anyone listen to the national, and international economists? The idea of changing Presidents in a time of crisis is akin to T.V. ratings. Oh, let's get a new leader!!! Let's not compromise, and work together on the problems. Let's refuse to compromise so we can get a new leader!! Who in their right mind would want to be President right now; and why would they want to do it? Gee, it must be patriotic service.... ; or maybe short term financial reward. Just ask George, the II; and Darth Cheney. We have a huge disaster coming our way. Now is not the time to be divisive. We need to compromise, develop a united plan, and accomplish it as we have before.
Sid - thanks for you last comment on my post - I appreciated it..
Yes, Obama did inherit two wars and a struggling economy. However, he had two years of a filibuster proof senate and Pelosi-controlled house to pass whatever he wanted. He chose to keep us in Iraq and Afghanistan, he chose to expand the war(s) in the middle east and take the fight into Pakistan and Libya, he chose to keep Gitmo open, and he chose NOT to raise the debt ceiling when he had the chance. What Obama policies can we point to that have helped create jobs in our economy?
How does one come to the conclusion that a small group of house or representatives helped spin the economy into more decline? Was it not lack of fiscal responsibility that ultimate caused the downgrade?
Last, I agree with you that an ineffective president does not wield as much power as the congress, who control the purse strings to the federal budget. However, the president does have the ability to constrain the economy, which he is currently doing by, among other things, holding back the reigns on the pipeline from Canada to our refineries in Louisiana; by stopping drilling in the Gulf of Mexico; by passing health care legislation that will effectively mean the end of the private health insurance industry; by backing the NLRB who has is keeping the new Boeing plant in Charleston, SC inoperable while they sue to close it; by using the Fish and Wildlife Service to close down manufacturing at Gibson Guitar Company and seize their property, for importing wood that allegedly broke export laws in India and Madagascar, instead of using the power of the federal government to help these companies succeed and keep jobs here in the U.S; and the list goes on.
I believe compromise is exactly what got us into the current situation we find ourselves in now, which is a no growth economy. Compromising loan standards, and compromising the integrity of the vehicles that they were bundled and sold in gave us the housing bubble, the bubble burst and is still rippling. Republicans and independents, now is not the time to compromise. Now is the time to work hard to defeat democrats in state and federal government who have spent Illinois and the federal government into bankruptcy, and have created a business climate that chases jobs from our state, and from our country.
During the deregulation depression of fall 2008, I witnessed many jobs eliminated. These jobs will never come back. The deregulation depression of 2008 hit quick and hard. Banks making ‘pick a payment’ loans, commission greedy bankers hawking home equity loans and robo-signing of non-reviewed loan applications got us here. The various freak shows…tea party, faux news, ron paul all want more deregulation. A view of the results of the requested deregulation can be seen in Somalia. The US needs to enact a tax of $10,000 per year per job exported. The inducement of tax cuts to create jobs has been an abject failure; all we got out of that is a vast increase in the concentration of wealth.
During the election of 2012, the feudalism seeking billionaires will seek to deceive the voter. Any ad sponsored by freedomworks or Americans for prosperity is a lie. In addition, said billionaires will have their puppets, the tea party, out in force. The tea party has given America a credit down grade, crashed the stock market and pushed America back into recession.
Thanks for your comments. Both of you make valid points. The point of view from each of you demonstrates the concern, and divisiveness that separates the Congress. Sadly, I see no change in the lack of compromise whether President Obama, or Rick Perry wins. At some point in time; there has to be compromise in Congress, or the situation will worsen. The media, spin doctors, professional politicians, and stubborn people will maintain this divisiveness for profit, and pride. The people who are hurting from this economic disaster will only accept so much. One riot in a food line, or job fair line could be the spark. One insensitive corporation, or C.E.O. comment could spark it also. When people feel that their basic needs will not be met, their children's future will be worse than their past, their politicians are corrupt, and their savings have been stolen; they will react out of the need to survive. "No compromise" will cause it. Our people have always compromised with each other except for those times we fought each other.
The end of uninsurable, pre existing conditions and rescission are exactly why I voted for and shall vote again for President Obama, who also got Osama. All the republicans can think to do is to give even more budget busting tax cuts to the wealthy, of course they have to pay their financers, and help increase the wealth divide. In addition, the republicans want to pump the US dry to provide short term cheap gasoline for appalling gas guzzlers. The current economy would be far worse under complete republican rule. Unemployment would be at 80%, the Midwest would be a ruined radioactive desert due to unregulated nukes melting down, and all coasts would be black with spill here, spill now. Any protections for workers would be gone, no minimum wage, no overtime pay, no specified paydays. The stock market would be at -5,000, with a clawback provision for small investors to make the poor billionaires whole again. Social security would be turned over to high load funds for a clipfest. Medicare would be by private insurance companies with anyone sick or over 40 uninsurable.
Now we have the puppets of the billionaires, the tea party, advocating feudalism with the said billionaires as the crown. Others want to limit the right to vote to the wealthy.
Ha! Republican apologists spout this line like Catholics say "Amen." As if Barney Frank was the guy making a couple hundred million dollars a year while telling his legion of traders to give government-backed money to part-time workers with no assets.
Let's wait until the US suits against the Wall Street banks are done, shall we? In the meantime, back to finance class!
Not only that, but they would pass laws requiring you to surrender your first born child to the government and would require that all puppies be immediately shot upon birth.
Almost all of the Republican candidates are jokes whose policies would make our already awful situation even worse, but c'mon man.
P.S. Don't fool yourself into thinking that Obama is ultimately fundamentally different from them, or even if he was that he would actually have the power to put an end to what is really destroying our economy. That's what happens when you allow big business to become more powerful and influential than the government itself.
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