Unemployment: Obama Confronts "Permanent Destruction" Of Thousands Of Jobs

bloomberg.com:

Sept. 28 (Bloomberg) -- Full employment ain't what it used to be.

Economists since the mid-1990s have reckoned that full employment was equivalent to about a 5 percent unemployment rate, taking into account the time required to switch jobs. Now Nobel Prize winner Edmund Phelps and Pacific Investment Management Co. Chief Executive Officer Mohamed El-Erian say the fallout from the deepest recession in more than five decades is driving the so-called natural rate higher, perhaps to 7 percent.

Read the whole story: bloomberg.com

Comments

[TruelyFedUp]

This story would not exist in a resource based economy - see www.thevenusproject.com for details.

"A Resource-Based Economy is a system in which all goods and services are available without the use of money, credits, barter or any other system of debt or servitude. All resources become the common heritage of all of the inhabitants, not just a select few.

The premise upon which this system is based is that the Earth is abundant with plentiful resource; our practice of rationing resources through monetary methods is irrelevant and counter productive to our survival. Modern society has access to highly advanced technology and can make available food, clothing, housing and medical care; update our educational system; and develop a limitless supply of renewable, non-contaminating energy. By supplying an efficiently designed economy, everyone can enjoy a very high standard of living with all of the amenities of a high technological society.

A resource-based economy would utilize existing resources from the land and sea, physical equipment, industrial plants, etc. to enhance the lives of the total population. In an economy based on resources rather than money, we could easily produce all of the necessities of life and provide a high standard of living for all. " Jacques Fresco

Truly

[Ventoi]

Obama is not really going to have to learn to live with unemployment...

the people in his country will...

they do not need that...

they do not need to live on the street or in storage spaces

to give some rich guy like Bob Dylan fodder for his songs...

we are not toys.

[JBS]

Obama's got to live with it? Obama's got a job. It's the rest of us having to live with it.

[ronpaul2012]

Exactly!!!

[MeDonut]

Yup, Obama has just got to live with high unemployment for workers and high bonuses for Wall Street executives. Just got to. He has no choice. He just has to live with it.

What's a president to do? It's really hard on Obama. He just has to live with it. High bonuses for Wall street. High unemployment for American workers. Just got to live with it. Can't do anything about it.

OK, I get it. Thank you Bloomberg for explaining the situation. We just got to live with bonuses for Wall Street and high unemployment. No sense blaming Obama. He's just like everyone else. He just has to live with it. No sense blaming Mayor. Bloomberg and the other billionaires. Nothing anyone can do about it.

Don't blame Congress, or NAFTA, or the New York times which every month publishes a new editorial in favor of shipping jobs overseas.

Unemployment in America is like gravity. it's just there. It's a fact of life. We just got to live with it.

[LunaPark]

Stimulus never works for very long if at all. It didn't work in the 1930s. It didn't work in 1990s Japan. Japan really went ape on spending on infrastructure. Japan was building roads and bridges to nowhere, and artificial airport islands that are sinking. None of it helped. Stimulus didn't work in Argentina either, nor Zimbabwe. You'll get a short bump, but that is it. And cost of borrowing (Japan had export savings and didn't need to borrow) makes the problems worse. In order for the economy to start working, you need people to save, and then spend their savings.

[BorseGermany]

The disconnect between the problems facing main street and Washington keep widening. For the past year we've heard nothing but talk of regulation, but zero action. What a joke.

good articles... http://www.iamned.com

meanwhile, the stock market is surging and everyone is too busy to counting their money to show any initiative

[watchTVgetSTUPID]

Obama's trusted economic team are directly responsible for the permanent loss of American jobs. When Obama's car czar demanded GM CEO Waggoner's head for protecting American jobs, he sealed the doom of perhaps a million jobs. Rattner (Obama's Wall Street hit man) took over GM and installed his loyalists as CEO and board of directors. They had their marching orders ... eliminate Saturn, eliminate Pontiac, eliminate 2000 dealerships. Now every time you see a Saturn or Pontiac on the road, remember Obama betrayed these loyal customers of American industry and forced them towards the arms of foreign importers. Millions of loyal customers of Saturn & Pontiac and the 2000 closed dealerships will now buy foreign imports instead.

Rattner/Obama did not just permanently destroy 100,000 jobs at GM and Chrysler. They destroyed another 200,000 jobs from smaller companies that manufactured the car parts assembled by GM and Chrysler. And that is just the beginning of the ripple effect. Blue Cross of Michigan is raising their premiums by over 30% driven by the need to compensate for lost revenue from the auto industry. THe state, cities and counties are cutting jobs because revenue is down. Forclosures are up. A livable house in Flint can be bought for $5,700, no new construction can compete with those prices. Tourism to Florida is drastically down affecting jobs (restaurant business is down as much as 50% in Orlando).

[watchTVgetSTUPID]

And Obama's Wall Street folly gets worse. The decision to brutalize the American auto industry has forced up imports by billions of dollars every month. THis is money that must be borrowed from oversas (China) or printed by the Federal Reserve. When China stops buying toxic TBills, then the dollar will sink and inflation will double the cost of living .... only most people will not have enough money to pay and will cease being the customers that make up 70% of our GDP. Tens of millions will lose their jobs, health care, cars, and homes.

[ILuvBubbles]

Your an idiot to believe Obama has destroyed permanent jobs here in America, this all started during the creation of NAFTA and other trade agreements. China has been a one sided trade "partner" long before Obama got into office. We have outsourcing to India for service jobs and yet you place blame on the new administration that has been in office less than a year?! This has been an attack on the middle class since Reagan. Do some research its all there if you care to know the real cause.

[Stockbroker38]

As a handsome 38-year-old stockbroker, I would just like to get people to focus on the positives about the economy. For one guys like me -- members of the top 1 percent -- are doing better than ever. And the derivatives market that some blame for tanking the economy (LOL!) is bigger than ever.

Google "quadrillion derivatives market for proof."

Has anyone seen my caviar dish? Or my bailout receipt?

[loki]

Im glad with all these people out of jobs, and no hope on the horizon of ever finding decent paying jobs again, Obama has the time to fly off to shill for chicago to get the Olympics. Oh well, it will mean billions for big business, and some temp jobs for the local unemployed. Unless they bring in hb1 visa workers for it.
I just think there are a lot more important things he can be doing than pushing for Chicago to have the Olympics.

[Lahonda]

C'mon people... jobs don't materialize out of thin air! The government has started the ball rolling, but this isn't "Click your heels three times and you're back in Kansas..."

Sometimes I think that America perceives that it elects some sort of dictator with supreme power. Anyone at the front of this debacle has been left with an enormous task to turn the slow.ship.­of.state.a­round.

Keep on pulling and pushing please! the President needs your help, not simply your complaints

[tompoe]

Without corporate media, where would we go for idiotic humor? "natural" unemployment rate?

[billyfitz]

By "Obama May Have To Learn To Live With High Unemployment" don't hey mean WE will have to learn to live with it.

We will also have to learn to live with a shrinking middle class and a broadening economic gap between the top 5% and the rest of us.

[ManwithaParachute]

Banksters beware.

[CommonSenseForChange]

Obama has stated that the off-shoring of jobs will be penalized. Obama needs to step it up on this one. The problem Obama needs to come to terms with is that those receiving the most benefit from offshoring our jobs (Indians), call oout everyone that disagrees with them xenophobic and racist.

Oddly enough, those same people (the India mafia) calling U.S. citizens xenophobic/racists are the very ones violating our EEOC laws by refusing to hire qualified Americans even when the business is in the U.S.! Even more weird is the fact that the U.S. government contracts with the India mafia companies that refuse to hire Americans that are are 90%+ staffed by Indian H1B and L1 visa imports.

You can't put qualified Americans out of work just because India is poor.

[hypnotoad72]

It's easy to fall into the race card trap. And those who use it most are more likely to have ulterior motives. And I've seen that on BOTH sides, but the core issue is still true: Those who play the card - often (but NOT always) - use it for not the best of intentions.

[ILuvBubbles]

While you idiots rant about using the "race" card you miss the point entirely. Companies care about one thing and one thing only, their bottom line. If they could find even cheaper labor than India then that is where the jobs will go period. First it was the manufacturing sector now its the service jobs. Many American corporations are not hiring employees but outsourcing to consultants where they don't have to pay certain taxes (like unemployment) and benefits. (Verizon is a good example). The American dream is dead for many and dying for the rest of us.

[CollegeConservative86]

You can't have a recovery without jobs. It's unsustainable. If people don't have money to spend and invest, how can you have a recovery?

[springbaby]

Trust what you know...you are absolutely right!!

Who do you think made up with the term "jobless recovery"? It doesn't make sense because it doesn't make sense!

They want you to be hopeful for the recovery while you're looking for the turnaround in job employment. Follow your convictions. Don't wait for the government to decide what they want to do for you.

[loki]

Ah, it makes sense now. Jobless recovery was invented during the first Bush failed economy. Something his son out did him on just as he out did him on a war with Iraq.

" The term "jobless recovery" first emerged after the early 1990s recession under President George H.W. Bush. The recession ended in March 1991, but unemployment kept rising up to June 1992 -- a fact that many say was Bush's downfall in the 1992 election. President Barack Obama certainly wants to avoid the same trap, but it may be out of his hands barring a second stimulus plan, which could be politically treacherous."

http://money.cnn.com/2009/08/25/news/economy/recovery_unemployment_jobs.fortune/index.htm?section=magazines_fortune

[iplaw]

Yeah, because that first 900 billion really created a lot of jobs. It was just an excuse to enrich Goldman, Lehman, et al. Maybe if they had spent the money in some kind of incentive to hire people or buy something jobs would have been created.

[efmo]

I hate to say it but I think many economists & wall street/investor class would be satisfied with 7% or higher permanent unemployment because it would keep inflation low. The global economy is a problem (esp. if you don't follow the Chicago school of economics - Friedman), but it's not a problem for the investor class because it enables them to keep unemployment high & wages low at the same time. Perhaps the answer is really to start a global labor movement & insist on higher wages/bene­fits/envir­onmental protections all around the globe so corporations can't run from them from country to country (as they are doing now in the far east - leaving China for Vietnam for ex.). And the US nees to start making things (somehow unique ) that other countries will want more income in order to buy. I don't know how this would really happen unless we had more trustbusting, esp. of the financial industry which is quite happy with the status quo.