250,000 Jobs Will Still be Lost Monthly

Arnold Schwarzenegger terminated 10,000 people yesterday in a state-wide layoff that threatens to double today. "The governor, facing a $42 billion deficit, was prompted to move on the layoff notices after lawmakers missed a Monday night deadline to reach a budget deal, McLear told CNN late Monday."

Kansas Governor, Kathleen Sebelius, signed a budget-cutting bill on Tuesday to ensure that state employees received their paychecks on Friday. The bill also released state income tax returns.

Toyota has had to reduce the workweek until it starts seeing more sales. Toyota has managed to keep it's 1,900 workers in San Antonio employed, nonetheless.

Despite President Obama's signing of the $787 Billion recovery plan, Mark Zandi, chief economist at Moody's Economy.com argued that 250,000 jobs will still be lost monthly.

Hence you may want to start updating your resume and memorizing answers to difficult interview questions.

For updates on this developing story follow me on Twitter and view my responses on Lachamba.

Comments

[DuganS1]

The stimulus package will have limited effectiveness in the short term because it will take too long to get money out into the economy via the tax cuts and infrastructure projects, and the rest of the money is just an AMT patch which adds no new money to the economy and transfer payments to the states which is merely a transfer of debt from the states to the federal govt. Some of the money will also be detrimental to the economy in the longer term as it will permanently increase the size of govt, which will be an added burden to tax payers in the future and siphon more money from the private wealth-producing economy. Last, Obama never said the stimulus package was supposed to create 2.5 million jobs. He said it will either create OR SAVE 2.5 millions jobs.

[ConservativeTim]

Obama's original staement regarding HIS stimulus, was that it would CREATE 3.5 - 4 million jobs. He has changed his statement (after it was passed) to read "It will create or SAVE 2.5 million jobs."

[MajorKong]

It's telling that you use the term "The private wealth-producing economy". It may be creating wealth but it sure isn't creating jobs. And it hasn't been creating much wealth for the average American over the last few years.

[americaforme]

Business as usual, Berneke offered his answer to the question of why the Feds. charge 1% interest and the banks charge up to 30% for credit cards, the new sweeping deal as he explained it, was more transparency, like making the small print easier to understand, and removing the slippery time dates to over charges. He didn't answer the question, he hedged. Unless someone goes to bat for the average guy, we will not recover. I didn't hear anyone all day question why he hedged on the question. Credit Card defaults= Massive layoffs. The housing problem is real, but debt ridden Americans holds the keys to jobs lost The have nots are bank slaves now..

[KarenT]

Considering we are losing an average of 600,000 jobs per month, that would be a great downturn to start losing 250,000 jobs per month. I doubt that will happen right away but is a good goal.

[phrancine]

More unemployment, really??? Instead of spending "bailout" money like a drunken sailor on leave (no offense to any drunken sailors) can't we start some kind of CCC program. My father used to talk about how it helped keep him employed when times were tough. Money is scarce, moral is low and it seems like this would be a good time to offer a hand-up instead of a hand-out. The people losing their jobs are obviously "workers" and the CCC programs provided dignity and jobs to people willing and able to work.

Maybe this suggestion is simplistic, but I know that it is hard to keep your head held up, when you don't have a job.

[DuganS1]

Hiring the unemployed into CCC like programs will not not fix the underlying problems of the economy. It also would create any new wealth. It will merely result in siphoning money from the wealth-producing private sector and reallocating to folks on the dole. This is a terrible strategy IMO.

[rascalov]

That's absurd. Programs like the CCC and WPA left behind wonderful projects that are still in use today. Create wealth? What about creating dignity that comes with providing worthwhile work projects for those you call "on the dole"? What about creating common-good projects and honing new skills in the unemployed in the process?

[WorkingClass]

My father served in the CCC. He said he got "three hots and a cot" and he sent his pay home. It was the only money his parents had after losing the farm. He worked in the Black Hills of South Dakota, building roads and parks and fighting forest fires. My father was not trying to fix the underlying problems of the economy. He was trying to see that he and his family ate regular and lived indoors. Thats what public works programs are for.

[MajorKong]

How's the private sector going to create wealth when nobody can afford to buy their products?

There's no demand right now. Nobody's going to build a factory when we're overcapacity and shutting down the ones we have. Nobody's going to open a retail outlet when they're closing up left and right.