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Economy
In reply to the discussion: STOCK MARKET WATCH -- Friday, 1 June 2012 [View all]Demeter
(85,373 posts)98. The price of a do-nothing Congress: Government layoffs, budget cuts making matters worse
http://www.marketwatch.com/story/the-price-of-a-do-nothing-congress-2012-06-01?siteid=YAHOOB
The latest employment data indicate that the U.S. job market is in a holding pattern the price we pay for a do-nothing Congress focused more on austerity than job creation.
Our economy added 69,000 new jobs in May, for an average of 96,000 over the past three months, with a downward revision of 49,000 for March and Aprils data. While this pace of job creation is fast enough to keep unemployment from rising, it remains well below that necessary to bring our economy back to full employment anytime in the near future.
Look no further than Congress for the reasons why this is the case. Last year, Congress refused to put in place the American Jobs Act, which would have helped to reduce unemployment and create jobs. By not acting Congress and the states are instead cutting off the long-term unemployed from any additional benefits and shrinking government spending. While the private sector has been adding jobs for 27 months, for a total of 4.3 million jobs since February 2010, state and local governments have been shedding workers in most months since the fall of 2008, for a total loss 660,000 jobs. These layoffs are pro-cyclical, meaning that they are dragging down economic growth.
While important steps were taken several years ago to boost government spending as the U.S. economy spiraled into the Great Recession of 2007-2009, including the American Recovery and Reinvestment Act of 2009, in recent years cut-backs at the state and local level have cut spending so sharply that overall, government spending has grown very little. In the first quarter of this year, government spending fell by at an annual rate of 3.9%. This is happening even as those who are unemployed are having an exceptionally challenging time getting back into jobs. The share of the unemployed who are long-term unemployed, that is, out of work and searching for a job for six months or more, was 42.8% in May. This is the 30th month where that share has been at or above 40%. Prior to 2010, the share of the unemployed who were long-term unemployed had never risen above 26%, a high hit when the unemployment rate was just over 10% in mid-1983...MORE
The latest employment data indicate that the U.S. job market is in a holding pattern the price we pay for a do-nothing Congress focused more on austerity than job creation.
Our economy added 69,000 new jobs in May, for an average of 96,000 over the past three months, with a downward revision of 49,000 for March and Aprils data. While this pace of job creation is fast enough to keep unemployment from rising, it remains well below that necessary to bring our economy back to full employment anytime in the near future.
Look no further than Congress for the reasons why this is the case. Last year, Congress refused to put in place the American Jobs Act, which would have helped to reduce unemployment and create jobs. By not acting Congress and the states are instead cutting off the long-term unemployed from any additional benefits and shrinking government spending. While the private sector has been adding jobs for 27 months, for a total of 4.3 million jobs since February 2010, state and local governments have been shedding workers in most months since the fall of 2008, for a total loss 660,000 jobs. These layoffs are pro-cyclical, meaning that they are dragging down economic growth.
While important steps were taken several years ago to boost government spending as the U.S. economy spiraled into the Great Recession of 2007-2009, including the American Recovery and Reinvestment Act of 2009, in recent years cut-backs at the state and local level have cut spending so sharply that overall, government spending has grown very little. In the first quarter of this year, government spending fell by at an annual rate of 3.9%. This is happening even as those who are unemployed are having an exceptionally challenging time getting back into jobs. The share of the unemployed who are long-term unemployed, that is, out of work and searching for a job for six months or more, was 42.8% in May. This is the 30th month where that share has been at or above 40%. Prior to 2010, the share of the unemployed who were long-term unemployed had never risen above 26%, a high hit when the unemployment rate was just over 10% in mid-1983...MORE
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Barney Frank: Obama Rejected Bush Administration Concession to Write Down Mortgages
Demeter
May 2012
#5
Missed the greatest opportunity this nation has seen in almost a century.
Egalitarian Thug
Jun 2012
#90
You'd think they'd learn how to make better tasting jelly after all these years.
Fuddnik
Jun 2012
#44
Retirement: Where Corporate Executives Make the Real Big Bucks by: California Labor Federation
Demeter
Jun 2012
#16
Anyone willing to bet that the US markets finish in the black today, though? esp. after Europe close
Roland99
Jun 2012
#39
U.S. adds 69,000 jobs in May; jobless rate 8.2% (March and April *both* revised down)
Roland99
Jun 2012
#34
JOBS REPORT DISASTER: JUST 69K NEW JOBS CREATED, UNEMPLOYMENT RISES, DOW PLUNGES 2.2%
xchrom
Jun 2012
#43
Good Gawd! It got worse there! It's like arguing with a Republican 10 years ago over WMDs!
Roland99
Jun 2012
#105
The price of a do-nothing Congress: Government layoffs, budget cuts making matters worse
Demeter
Jun 2012
#98
17 min. left for the rescue and still languishing just a bit above the daily lows.
Roland99
Jun 2012
#117
It's one of those "well, I really know better but couldn't resist" kinda things
Roland99
Jun 2012
#116