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Steve Clemons

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Labor Day Good News?

Posted: 09/05/11 03:21 PM ET

unemployment_395.jpgBleak views of the U.S. economy abound.  Real unemployment for August -- which, according to a monthly newsletter report prepared by Leo Hindery, includes discouraged workers (3.9 million), part-time of-necessity workers (8.8 million) and marginally attached workers (2.6 million) -- is up to 29.3 million workers, or 18.2 percent, compared with the still-bleak official unemployment rate of 9.1 percent.

EJ Dionne has today penned one of the most depressingly accurate homages to labor I've read, suggesting that we change the name of "Labor Day" to "Capital Day," arguing that we have "given up on honoring workers as the real creators of wealth and their honest toil ... as worthy of genuine respect."

But I've always had respect for contrarian views -- and I found one in my inbox a few days ago from the insightful research operation of the ISI Group.

The preamble to the report opened: "We are not trying to look at economic releases through 'rose colored' glasses, but the distinctly negative climate in the U.S. three weeks ago has since brightened."

Something to consider on this rather gloomy Labor Day are the ISI Group's observations:

1.     Monster online employment index continues to trend up.
2.     Consumer confidence is generally rebounding.
3.     Chain-store sales were solid in August.
4.     Motor vehicle sales were solid in August.
5.     Mfg PMI was better than expected (even after adjusting for the quality of the indicators, most notably inventories).
6.     Household employment jumped.
7.     Temp employment is up two months in a row.
8.     Unemployment claims are trending lower.
9.     Verizon workers returned to work, which should add about 45,000 to September's gain.
10.   Historically, September-to-November job growth is above the long-term average gain.
So, while today is cloudy, there is some hope that America's no-job-growth economy may be tilting slightly up for workers in coming months. 

Let's hope the ISI Group's view holds.

Steve Clemons is Washington Editor at Large at The Atlantic Clemons is also publisher of the popular political blog, The Washington Note.

This post first appeared at The Atlantic.

 

Follow Steve Clemons on Twitter: www.twitter.com/SCClemons

 
 
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PRONESE
Somewhat Opinionated Curmudgeon
05:52 AM on 09/07/2011
Comment Redacted.
More Coffee...
R/ PRONESE
04:40 PM on 09/06/2011
John Durso president of the Long Island Federation of Labor, AFL-CIO and president of Local 338 of the RWDSU/UFCW was right on when he said"The only way America will pull out of the current fiscally challenging environment is by rolling up its sleeves and collectively getting to work. That means for the first time in decades, management will need to make some serious sacrifices rather than asking workers to shoulder the whole burden. It's the way we built this great nation and is the only way that struggling companies and our country will thrive again."

Read more: http://www.nydailynews.com/opinions/2011/09/05/2011-09-05_dark_days_for_working_people.html#ixzz1XCqX7FU3
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rootytoot
06:02 AM on 09/06/2011
The world needs dreamers I guess.
03:22 AM on 09/06/2011
This Happy Talk is just intended to keep the opening market drop from exceeding the amount the robotraders can handle.
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William1950
everything I say could be wrong
12:25 AM on 09/06/2011
Just what if... jobs never come back. What if we are only starting to see the results of technology induced unemployment? What if unemployment levels of 50% or more are permanent? How will we keep civil order and a market based economy? And why do the economists and politicians refuse to consider this?
It seems clear that with every new technology and improvment in manufacturing and productivity that human labor is impacted.. they need fewer labor hours to get better results.
It also seems clear that a Basic Income Model will be necessary if we don't want to see the massive slums of the third world in our cities.
03:23 AM on 09/06/2011
I agree with your views. I just don't see the wealthy going along with a Basic Income Model because they don't believe in anyone being subsidized but themselves.
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Tom Hendricks
see wikipedia
12:03 AM on 09/06/2011
Jobs could be a month away - that's time enough to set up a National Hiring Day.
There is a solution to the jobs problem and it could quickly put hundreds of thousands of people back to work. It is not pro left or right. It is not from any corporation, it's outside the government control, it's totally voluntary, works in about one week, and helps all with little sacrifice from anyone.

National Hiring Day - This is a day that corporations are encouraged to hire new employees. Corporations are called on to put patriotism first and help their country in
hard times. Those corporations that cannot hire, are asked to stop firing for that month.
http://wp.me/p5S9X-nv

Republicans should love this because it's outside the government and voluntary. Democrats should love this because it helps those needing jobs. Independents should love it because it helps all with little sacrifice from any one corporation, group, or person. Corporations should love this because with just a hire or two they become part of a collective country wide jump start of the economy.

There has never been a time In American History where hiring people would hurt corporations less, and help the country more.
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William1950
everything I say could be wrong
12:27 AM on 09/06/2011
Demand creates jobs... Consumers drive the engine.. they won't hire if they don't have the demand.. what you think they will hire people just cause it's the right thing to do? I think not.
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Tom Hendricks
see wikipedia
10:42 AM on 09/06/2011
This is a new situation where consumers are out of work and the government is at a stalemate. That's why taking a wish list to this congress doesn't make sense to me. Nor does waiting for consumers to get jobs to help corporations to hire make sense to me.

1. If companies can send thousands of jobs overseas, they can hire one American on National Hiring Day.
2. If companies can get millions in tax breaks and subsidies from the government, they can help it in return by hiring one American on National Hiring Day.
3. With companies sitting on all time high profits, they can hire one person on National Hiring Day - which by the way, would help them in return.
4. McDonalds hired 60,000 last May in their own National Hiring Day, surely other companies can hire one person on a nationwide National Hiring Day.

This is not that big a deal for any corporation. It's even voluntary. Corporations need the incentive of patriotism - they've been given plenty, now its time to give back and by doing it, it will break the impasse and get the economy moving for people with jobs, the companies that hire, and maybe even give some direction to congress on how to get people jobs.
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rootytoot
06:05 AM on 09/06/2011
WHEN will the left figure out that business does not hire out of altruistic reasons. The only reason you hire someone is because you stand to PROFIT, yes that dirty word, PROFIT, more than the employee cost you.
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Corvid
07:04 AM on 09/06/2011
WHEN will the right figure out that their profits are possible only because WORKERS are willing to do the work and CONSUMERS (same as workers) are willing to buy. Without those two and in isolation, any so-called genius billionaire/CEO/banker is just a helpless blob of whiny and worthless humanity. It's because others do the work that these leeches can survive.
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11:38 PM on 09/05/2011
None of that stuff changes the fact that under a capitalist system wealth is transferred from workers to owners. Well, the workers don't have any more - so the capitalist system is the author of its own collapse.

Until capitalism is replaced by a system that cares for the people none of the financial statistics really matter.
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LoneTree
Just another 2nd Amendment liberal.
02:09 AM on 09/06/2011
I hate basketball. I was never any good at basketball. Basketball is a stupid game.
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Tena
09:50 PM on 09/05/2011
Number 5 - the mfg PMI - that's big for me. That tells me a lot - I consider that one a deep indicator.
07:15 PM on 09/05/2011
What is so badly missing today is the "real" celebration of the workers having their day. In 1894, President Cleveland's administration declare this holiday. Celebrating the hard working American and contributions made by these people for the benefit of country and the business world, it is now being attacked by the Republican Party breaking apart and destroying the very unions that made this day possible. Workers rights and safety are now being dismantled and thrown away. The rights for millions of workers demanding fair wages and a voice in negotiations of those wages are now being trampled upon and declared unfair by the behemoths that benefited the most. The Republicans are systematically erasing our middle class society and creating billions upon billions for the top 2%. Can we really allow big business and the super wealthy to continue this eradication of the middle class? We all need to wake up before there is no return.
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bettybp
we're old too soon & wise too late
08:21 PM on 09/05/2011
thanks michigan joe, would fan you again for that one. There was very little mention of Labor Day in the newspapers, TV, or even the internet.
DUSAA-1775
never moon a werewolf
05:50 AM on 09/06/2011
...' The Republican­s are systematic­ally erasing our middle class society and creating billions upon billions for the top 2%. ...
The US economy is a complicated and very large engine. I am not surprised that ignorant people must make up boogeymen such as the scary '2%' monster that hides under the bed or in the closet.

Please provide something, anything that is remotely intelligent that supports your nightmare about ....' The Republican­s are systematic­ally erasing our middle class society...'
07:25 AM on 09/06/2011
Please check out both links, especially the second. Distribution of wealth is real, and it isn't going to the middle class!!!

http://www.theatlantic.com/magazine/archive/2011/09/can-the-middle-class-be-saved/8600/

http://www.businessinsider.com/15-charts-about-wealth-and-inequality-in-america-2010-4
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HellBank
Curve: The loveliest distance between two points.
07:10 PM on 09/05/2011
The good news is the rich get richer ever faster. That's the bad news too.
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
06:51 PM on 09/05/2011
The US is only 4% of global population, that's the good news. They've seen what unregulated capitalism does to the US - they've seen what it does to global economy, felt it. They won't buy CDOs from Wall St.

The world knows US capitalism is a failure, and they won't follow it. Canada has full health care, low unemployment, no recession. Nations are emulating Canada, Europe. No nation is trying to become the US. So we 4% of the world will suffer for being the home of Ayn Rand, but we're a tiny minority. Worldwide labor will do increasingly better.

US capitalism is a perfect bad example to the world, and they are learning from it.
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LoneTree
Just another 2nd Amendment liberal.
01:58 AM on 09/06/2011
And Canada is a member of the "Saudi Arabias of the West": Norway, Canada, and Australia. Massive natural resources (can you say "oil sands"?), small and homogeneous populations, strictly enforced citizenship benefits. Canada had 41,000 illegal immigrants last year, the US had 12,000,000. A couple boutique European nations and Singapore will also be fine.

As for the rest of the world following out example, there is no "rest of the world". There is only China and India. And China is pulling ahead of India precisely because they are following our model more enthusiastically than the still quasi-socialist India.

Now, if a whole bunch of other nations can arrange the same vast natural resources, limited and homogeneous population, and strict citizenship enforcement as Saudi Arabia, Canada, Kuwait, Norway, Brunei, and Australia, I'm sure there would be more countries following their example.
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BklynDame
Now on BorderlessNewsandViews
03:28 PM on 09/05/2011
My hope for workers and non-workers alike is that we think about the fact that we are not alone; worldwide there are too many people in the same situation -- dealing with uncertainty through no fault of our own. Leaders have failed. Miserably. For those of us here, on this side of the pond, the more we realise that this economy is not just an American problem and that workers all over the globe are being subjected to unstable and worsening conditions, the better off we'll be as we unite to further our common goals.

http://thebrooklyndame.blogspot.com/2011/09/labor-day-is-here.html
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
06:52 PM on 09/05/2011
US workers have nothing in common with rest of developed world. They have full health care, we do not care. They pay for their health care with taxes based on income. Here workers pay same for health insurance whether they make $50K or $500K a year. The US is the most regressive developed nation on earth. We have more in common with Third World than UK or Europe.
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BklynDame
Now on BorderlessNewsandViews
07:31 PM on 09/05/2011
What US workers have in common with the rest of the world is that they're being screwed by large corporations -- just as folks are in the UK. Private enterprise in the UK provides neither safety nor protection from economic woes. What saves the UK workers, as you rightly mentioned, is the fact that they don't have to worry about losing their entire life savings due to illness despite the imperfections in the healthcare system.

I fully agree with you; this system in the US is entirely regressive. The trouble is here that US workers have to stop buying into the negative stereotypes about 'socialism', etc. so that they can get the protections that they need. Oh, and by the way, some Third World nations already see that full-on capitalism doesn't work so the systems they will build won't be like what we have here.
11:48 PM on 09/05/2011
Gee, you forgot then rich don't buy you your house or food either. The horror.