As We Celebrate the Death of Bin Laden…HOW BAD IS THE ECONOMY?

Figure 1 (Above)

 Figure 2 (Above)

Figure 3 (Above)

Figure 4 (Above)

 Figure 5 (Above)

 

As We Celebrate the Death of Bin Laden…HOW BAD IS THE ECONOMY?

·       

•  Overall Unemployment
  
•     13 million American remain unemployed (see Figure 1 )
•     Unemployment rate is 3 points higher than postwar average (See Figure 2) 
•     Job market continues to bw bad / Unemployment-Insurance claims remai high (See Figure 3)

• Long-Term Unemployment

•     Nearly ½  of unemployed are long-term unemployed(>26 wks) (See Figure 4)
•    Long term unemployment rate today  higher than in any post WWII recession
•    Average length of long term unemployment: nearly a year
•   Average length of long term unemployment has not improved since 2010
•   The longer a person is unemployed, the more their job skills erode and become
     irrelevant, and the harder it is to find a new job
•   Long term unemployment harms an individual's personal confidence and outlook
•   Long term unemployment can leasd to "new normal" of a permanent unemployment rate   
    of 8-9%. (This  occurred in Europe in the 1980’s)
   
  
• Economic Recovery
  
•    We are now in the 3d year of Economic Recovery
•     But for many Americans there has been NO economic recovery (See Figure 5)
  

• As We Celebrate the Death of Bin Laden…CONSIDER the HURT & SUFFERING THAT UNEMPLOYMENT BRINGS…
  
• Financial
•     Poverty
•     Living in a condition of being in arrears on paying off bills & debts
   
• Health
  
•     Workers Die At Higher Rate Than Average Within 1 Year of Losing Their Jobs
•      Long term unemployment rate today  higher than in any post WWII recession
•      Lifetime Earnings Permanently Reduced After Being Unemployed
•      Even 20 Years Later, Unemployed Die At Higer Rate Than Average
   
• Impact On the Country
  
•     Consumer Demand Falls Precipitously
•     “Structural Unemployment” Means People Remain Unemployed Even After End Of
       Recessions, i. e., the Jobs Never Come Back (Go Overseas or to Mexico)

As We Celebrate the Death of Bin Laden…WHERE CAN WE LOOK TO FOR HELP ON THE ECONOMY?

• MAYBE THERE IS NO HELP TO BE HAD (PIMCO)?
•     This is the “NEW NORMAL”
•     Get used to it & learn to love 8-9% unemployment
   
• CONGRESS?
•     Create and Subsidize  Job-Sharing programs to reduce unemployment (This was
      successfully done in Germany)
•     However this approach entails more government spending (which is unlikely to pass
      Congress)
•     This approach will add to inflation
       So:  Expect No Help From Congress
  
  
• THE FEDERAL RESERVE?
•    More QE (Quantitative Easing, i. e., Print Money)
•           But QE is likely to cause inflation

          Ben Bernanke is a clever guy and probably will try other tricks, similar to "Operation
          Twist" and other conundrums.
   So: Expect No Help From The Federal Reserve


THE POLICIES OF MITT ROMNEY? (IF HE IS ELECTED PRESIDENT ON NOV. 6, 2012)

Maybe We Can Expect Help from ABO (Anybody But Obama), Why?

•      Consider what the policies of Obama,  that have got us here, have foisted on the nation:
•      Increased  the National Debt by $5 Trillion in 3 ½ years (More than the combined debt
       accumulated by all previous Presidents in American history (!)
•      Has reduce drilling permits on federal lands by 30%. Has Retarded drilling, fracking,
       coal Production, and energy production in the United States
•      Has wasted enormous taxpayer funds on Wind, Solar, Algea, and other green
       technologies which have not worked, such as Solyndra and others
•      Has added billions of dollars of regulatory burden on Amercan businesses via Dodd-Frank, EPA,
       SEC, and more.

                And much much more…