I hate to be a "gloom n doomer" but many of those jobs probably are gone forever (at least for workers in this country). Thanks to globalization, corporations have been able to "auction" all kinds of jobs to the lowest bidders all around the world. There is always someone out there a little hungrier, a little more desperate, who will be willing to willing to work a little more cheaply, if it means they can put some food on their table. For those of you who have read "The Grapes of Wrath" I see a parallel to that story vs the mega-corporations of today. There is no need to deal with unions or stricter U.S. labor laws when you can build factories in third world countries and find plenty of people eager to work in conditions that probably mirror those of the U.S. during the industrial revolution.
I'm sorry...but wouldn't "it's different this time" mean that no new job creation happens again? So how "is it different this time"?
I am still dumbfounded how many people have not yet figured out that this âgreat recessionâ is not your typical run of the mill recession. In the run of the mill recessions we experienced in the last 7 decades since the great depression we have not had the central banking system come this close to complete and total collapse. Not just in the U.S. but throughout the world. The thrifts had their problems a few years ago but money center banks were never totally under water like they are today since the 1930s. I read somewhere (seeking alpha I believe) in early 2009 that banking collapses historically take 3 years to recover from and one this size would knock 10% permanently off the GDP because companies are going to have to run on cash flow because finance for expansion is just not going to be available to them. This is why a large segment of those unemployed are not going to find new jobs. No amount of government prodding is going to force banks to lend. These banks need time to recover from the excess number of foreclosures and rebuild their reserve and capital base. Neither can government buy new permanent jobs in industry. I agree with the article when it said ââ¦Unless there is a huge shift in government policy to cutting spending, we will not get back to 5% unemployment anytime in the foreseeable future,â¦â and that is not going to happen any time soon.
Just to absorb the new labor force 115k-135k new jobs have to be created each month. The stimulus plan being put through to create "jobs" will only be temporary, yea the economy will add jobs as this stimulus trickles through but once the stimulus is done and all projects finished, hundreds of thousands of jobs will be lost once again.
Foonote : One intellectual hero at J.P Morgan was responsible for GE's 5 % surge claiming "property values" "MAY" have bottomed relating to commercial real estate. Question : How many imbeciles are working on Wall Street ? Unemployment rate over 10 %, succesful outsourcing of America's industrial base to mainland China and some people still don't get it !
"7 million lost jobs: Gone forever?" Yes but billions of jobs have been saved! Whatever a "saved job" is?
seems like a couple of years ago, they were saying how great things would be for workers, because of all those Baby Boomers who would be retiring over the next few years. of course, prior to 9/11 we had a budget surplus, and they canned the 30 year Tbond, because we would not be needing to borrow money anymore...