imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

America's Sick Economy

by Stephen Lendman Thursday, Sep. 08, 2011 at 4:58 AM
lendmanstephen@sbcglobal.net

economy

America's Sick Economy - by Stephen Lendman

Sooner or later the usual pundits and "experts" showing up on tout TV will buckle and admit what honest analysts have been saying all along:

America's economy is sick and getting sicker. Since 2008, working households have struggled through the early stages of a protracted global depression, getting worse.

While corporate profits recovered, workers experienced growing poverty, homelessness, hunger, and high unemployment.

At the same time, barely more than crumbs were offered for help. Now ended, austerity cuts are coming, not vitally needed stimulus, including an effective job creation program. More on that below.

In times of trouble, alcohol consumption increases. In fact, Bloomberg News said it's soaring. So are lottery ticket sales, according to USA Today and firearms purchases at a time more people either feel scared or very uneasy.

The latest consumer confidence survey shows why. The Economist called it "dreadful with the headline figure falling to a two-year low." It's similar to a late August EU measure, showing sentiment "experiencing its biggest fall since December 2008."

The dismal jobs picture explains. Economist David Rosenberg called August report "horrible." So did economist and regular Progressive Radio News Hour contributor Jack Rasmus in his latest article headlined, "August Jobs Report - Worse Than Zero," saying:

Monthly, the Labor Department releases two reports:

-- the headline Establishment Report Survey (Current Employment Statistics - CES), "over-represented by large businesses," and

-- "the more accurate Current Population Survey (CPS)", also called the Household Survey.

CPS "covers small business much better than the CES," so presents a more accurate jobs picture in its details, beyond the headline number that fluctuates up and down. In most recent months, it's mostly pointed south, showing job destruction, not gains.

Until recently, large companies created modest numbers of jobs. However, "smaller businesses (are) the source of more than half of (all) created or lost."

The latest headline CES number "showed no jobs created for the month of August. Zero," confirming the dire state of America's economy on track minimally for "relapse" or considerably worse because policy measures have done more harm than good.

CPS numbers best reflect the dire picture. They includes discouraged workers who've stopped looking and others "converted from full (to) involuntary part time jobs."

Its more comprehensive picture also "shows the duration of the long-term unemployed." In August, it revealed "an alarming additional 430,000 workers....hired as involuntary part timers, bringing their total to more than 8.8 million."

Several points are relevant. Employers are shifting growing numbers of workers from full to part-time status. It reflects the first step "many companies take before reverting to direct layoffs in greater numbers," as occurred in 2008.

As a result, Rasmus calls "(l)ast month's major rise in part-time employment (perhaps) the canary in the mineshaft indicating mass layoffs to come in a few more months," and continuing in 2012.

Moreover, the 430,000 rise in part-timers "represents an actual reduction of up to 215,000 jobs, as hundreds of thousands of workers are converted from" full to part-time status involuntarily.

Another dangerous trend was the "significant rise in the number of discouraged and marginally attached workers" in the past three months, a trend likely to continue.

Since June, 266,000 workers dropped out, as well as the 430,000 converted to part-time status - clear signs of a deteriorating labor market heading south.

Data for employed non-supervisory workers also "shows their average hourly wage and average weekly pay both declined" in absolute terms - before inflation impacted them further, especially for food, energy, medical and transportation costs, among others.

Obama will shortly announce his fourth job creation plan. After three previous tries, he struck out. Expect more of the same now, including tax cuts for businesses already sitting on trillion they won't spend at a time they're beginning to shed, not add jobs.

In fact, added handouts may up executive pay and bonuses, but won't create a single job.

Other Obama schemes may include corporate tax breaks for infrastructure development, cutting regulations that do more harm than good, job destructive trade deals even more counterproductive, and perhaps other ways to enrich America's aristocracy at the expense of ignored working households.

As a result, expect the dire state of working America to get more dismal ahead, especially because of a bipartisan commitment for austerity at the worst possible time.

In a late August report, Rosenberg presented a disturbing global picture, including:

-- 0% French GDP Q2 growth, combined with a 0.7% consumer spending decline, the largest in 15 years and third steepest drop on record;

-- Australia had its worst employment report in the past eight months;

-- Insolvent banker occupied Greece saw its GDP contract 6.9% at an annual rate;

-- Hong Kong's GDP dropped 0.5%, its first slippage in two years;

-- South Korea, Japan and Britain just downgraded their outlooks;

-- Bernanke did the same for America;

-- China's growth is slowing across the board; and

-- Eurozone industrial output fell 0.7%, the sharpest drop in a year.

He also said America's equity market is no higher now than 12 years ago and employment is stuck at the 2000 level. It's actually much worse including discouraged workers.

These numbers, in fact, suggest worse to come later this year and in 2012. Out in front equity markets signal it, including 25 or more European, Asian and North and South American ones down over 20% and falling.

Detroit - Symbolic of Industrial America's Decline

On July 31, UK Daily Mail writer Peter Hitchens headlined, "From Motown to Ghost town: How the once mighty Detroit is heading down a long, slow road to ruin," saying:

America's earlier industrial hub is in disrepair and dying. "Detroit is not just fading away gracefully, but noisily sick" in its death throes, "expiring as spectacularly as it once" thrived.

Fifty years ago, it was America's fifth largest city with 1.85 million people. Today, it's 11th ranked with about 700,000. Most of its "great buildings are ghosts." So are its neighborhoods in disrepair, decaying and dying.

Detroit is a testimony to America's decline. It's the nation's poorest city with unemployment well over 50%, including discouraged workers. It's where hunger also affects the middle class.

It's an intensifying crisis getting worse because little is done, and nothing so far tried has helped.

In spite of dire conditions nationwide, Obama brazenly addressed a Detroit Labor Day event, suggesting little will be done to deal with America's worst employment crisis since the Great Depression.

Instead of highlighting the dismal state of working America, he focused on saying the "recovery" wasn't "fully" complete. At the same time, he admitted that "times are tough," no thanks to his destructive economic policies for over two and half years.

Instead of saying his September 8 address to Congress will outline significant help coming, he arrogantly claimed credit for "keep(ing) our teachers on the job," despite continuing huge nationwide layoffs and his disdain for organized labor.

He said "(w)e're fighting for health care when you are sick," when, in fact, Obamacare rations it to enrich insurers, drug companies, and large hospital chains. He's also working with Republicans to slash Medicare and Medicaid benefits before taking aim at cutting Social Security later on.

With Detroit in its death throes, he claimed the city "is coming back." He praised his "strong cities" initiative under which mayors like Detroit's David Bing are "downsiz(ing)" by cutting services for thousands of residents.

He claimed he and Republicans are working together "to solve our problems," when, in fact, everything they've exacerbated them.

Overall, he had the audacity to suggest he's helping working Americans when his policies increased poverty, unemployment, hunger, despair and anger about political Washington's indifference to their growing misery.

For the fourth time, Obama's Thursday address to Congress will explain policy measures similar to past failed ones.

As a result, expect harder than ever hard times ahead with working Americans left increasingly on their own, sink or swim because neither Obama or Congress give a damn enough to help them.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

http://www.progressiveradionetwork.com/the-progressive-news-hour/.

Report this post as:

Local News

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A13 12:39AM

lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Creative Destruction Hack Mod Generator S15 3:49AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Propagande de virus, virus de propagande S10 7:34AM

Steer clear of work morality! S09 12:10PM

Sweatshop Lodge Ceremony Continues in US Fed Prisons Led by Inmates S08 6:17PM

Paraphysique de l'origami S08 7:11AM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Du réussissement putréfié S06 10:55AM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Log S06 4:25AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

Paraphysique de contextualité S05 8:29AM

Crisis Regulation in Global Capitalism S03 3:39PM

Ex-voto de réification S03 10:24AM

Please Oppose Warmonger, Execution and Torture Supporting Bush Operative Brett Kavanaugh A31 10:45PM

Paraphysique d'exploitation occultation A31 10:24PM

Ryan Zinke Is Charging Taxpayers For A Trophy Hunters' Council A31 2:10PM

Is the Financial Crash 2.0 Coming? A31 10:07AM

The Shortwave Report 08/31/18 Listen Globally! A30 11:44PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy