Wednesday, February 10, 2010

Why Unemployment Is So Stubborn

Have you heard any of our fellow patriots bitching about the fact that Obama has not solved the recession problem in his first year in office?

The surprise awaiting you is that this nice American you've over heard is possibly a secret billionaire!  One of MeanMesa's favorite quotes is from Senator Bernie Sanders (I-Vermont).  He told us two years ago "Not everyone is having a bad time under the Bush (W) economy.  The richest 400 hundred Americans have seen their personal wealth increase by $630 billion in the last eight years."

For the overly casual MeanMesa reader, that is a $630 billion dollar INCREASE, not a $630 billion dollar net worth.  The economy was thoroughly looted by the criminal elements in the W's autocracy, and the train wreck which is left is so grave that the full impact of the damage is just now manifesting here on Main Street.

MeanMesa has carefully "cut and pasted" some direct information from two interesting internet sources.  Anyone finding this suspiciously manipulative, aside from possibly having too much time of their hands, can follow the links to see the full content.

The Huffington Post
February 10, 2010

'No Labor Market Recession For America's Affluent,' Low-Wage Workers Hit Hardest: STUDY

It's truly been a tale of two unemployment crises.

Though the national unemployment rate dipped slightly in January to 9.7 percent, a new study suggests that not only have low-income workers been the hardest hit by the jobs crisis -- but, shockingly, there has been "no labor market recession for America's affluent."

The study from Andrew Sum, Ishwar Khatiwada and Sheila Palma at Northeastern University's Center for Labor Market Studies suggests that the unemployment problem is largely a problem for low-wage workers (hat tip to the Curious Capitalist). 

At the New York Times, Bob Herbert delved into the study and noted, "The point here is that those in the lower-income groups are in a much, much deeper hole than the general commentary on the recession would lead people to believe."
According to the study, approximately 50 percent of households in the bottom decile of American income distribution are underemployed; in the second lowest decile, 37 percent of households can't find enough work. The authors write: "These extraordinarily high rates of labor underutilization among these two income groups would have to be classified as symbolic of a True Great Depression."

and, from the Curious Capitalist which is cited as the source for the  Huffington Post article:

Commentary on the economy, the markets, and business

Rich people still have jobs, poor people don't

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