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Tuesday, February 28, 2012

"These extraordinarily high rates of labor underutilization is symbolic of a True Great Depression."


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"Every Morning, Every Evening, ain't we got fun"....

"The rich get richer and the poor get poorer"

"We have to make cuts in education...prisons...mental health..."

"No recession for the rich, 

while poor and middle class 

hit depression level underemployment"

 "One in three Americans earns less than they need to pay their bills. One in two low income Americans are underemployed or unemployed."

 "No new taxes...do not tax the rich..."

"85% of the American wealth is in the hands of 10% of the population."

"America's class system is becoming as rigid as any nation in the world, with the bootstraps and every child can grow up to be president increasingly fanticies and fairy tales of the American Mythos." 

"The folks in the upper-income group are not suffering much, if at all, from the profound reversals in employment brought about by the Great Recession. Those in the middle have been hit hard. The job losses there have been severe and long-lasting. But for those in the lower-income groups, the scale of the employment crisis has been mind-boggling.

Excerpt from the Huffington Post   | by  Ryan McCarthy First Posted: 02-10-10 01:00 PM   |   Updated: 02-10-10 01:0

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

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, chart of unemployment by financial status and pdf of study included at this Time-CNN site).
From the study:
At the end of calendar year 2009, as the national economy was recovering from the recession of 2007-2009, workers in different segments of the income distribution clearly found themselves in radically different labor market conditions. A true labor market depression faced those in the bottom two deciles of the income distribution, a deep labor market recession prevailed among those in the middle of the distribution, and close to a full employment environment prevailed at the top. There was no labor market recession for America's affluent.
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." Here's more from Herbert:
The highest group, with household incomes of $150,000 or more, had an unemployment rate during that quarter of 3.2 percent. The next highest, with incomes of $100,000 to 149,999, had an unemployment rate of 4 percent.
Contrast those figures with the unemployment rate of the lowest group, which had annual household incomes of $12,499 or less. The unemployment rate of that group during the fourth quarter of last year was a staggering 30.8 percent. That's more than five points higher than the overall jobless rate at the height of the Depression.
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."

For pdf of actual study contact Communication Prof News and Views, Art Lynch.

Sources: Huffington PostTime-CNN, New York Times, http://www.greatrecession.info/

First Posted 2-9-2010

17 comments:

Jessica Pacheco said...

Sad

Anonymous said...

The unemployment rate nationwide is around 9%, Nevada statewide 14% and most local building trade unions 60 to 70% for the last 2 years. Now that is sad.
John Allen

ANTHONY REED said...

Its time now for people to start owning and operating their own businesses that cater to industry.

ANTHONY REED

Anonymous said...

WOW . . . DAMN IT'S A SHAME HOW EVERYBODY IS BROKE.. WELL EXCEPT FOR THE "RICH/UPPER-CLASS."

-HAVASHA REED
COM 101

Junyi Zhu said...

It is still true till now. But sometimes people cannot just rely on the government, they should work harder. I notice that there are some jobs open but people don't want to do it!

Anonymous said...

These days you gotta work hard if you wanna make it. A lot of people out of work and some people have the nerve to complain about their job. Seems like nowadays if you don't have a degree, your gonna struggle.

Chris Jackson

Georgina Zielinski said...

Wow that is crazy. It's all so true though, especially those quotes at the beginning. Hopefully this can be resolved soon.

Miranda connell said...

The unemployment rate in the country is out of hand. Small businesses cant pay their taxes and people are being let go everyday. This is a time people have to work hard and suck it up. The unemployment rate among people without a bachelors degree or higher is higher then those who have one. An education and some drive are the most important things anyone can have these days. Its up to is, every man for himself. 

Viviana Velasquez Com101 said...

The recession has really hit Las Vegas hard. In my street alone, there are 5 houses that are currently vacated. I know houses that were actually foreclosed with the previous owner still occupying the house.

Vivana Velasquez Com101 said...

I beleive education is trully importnat in todays economy and that's why I decided to go back to school. According the blog, the trend of unemployment is higher in the job sector that requires less education. However, in this economy, even educated individuals are feeling the effects of the recession.

Viviana Velasquez Com101 said...

I think before the recession, Americans in general were spending much more than they could afford. One of my friends who just lost her home explained that she and her husband bought a home that they barely could afford. They both worked 2 jobs to make their monthly payment. Then when their adjustable rate mortage gradually jumped up by 50% within a span of 1 year, they could only sustain the payments for a few more months.

Viviana Velasquez Com101 said...

With the recession hitting so hard, I know some people who have tried to apply for any job possible. They were told that they were over qualified for the position. I know others who I tried to help find a job. It was actually depressing when you drive all over town handing in resume after resume with no luck.

Viviana Velasquez Com101 said...

When I watch CNN, I use listen to Economy experts that advised people to save at least 6 months of salary in case of emergency. That was before the recession. Now they say to have at least a years worth of salary for emergency. How can anyone save during these tough economic times.

Viviana Velasquez Com101 said...

With so many unemployed individuals, everyone is in dispear. Even the ones that are still employed have to be on their top game and show that they are worth keeping. Nothing is scarier than feeling that you could be replaced easily by 100 other candidates looking to fill your position.

Anoshe Abbasi said...

America used to have a high population of middle class,but with all this non sense going on in the world the rich are playing monopoly while the average Joe has to tell his family they are loosing their home.It is very sad what is happening it really is it braks my heart.

Michael J. Jones said...

I believe that education and low income families are directly correlated.
The fact is, there are more under-educated people then there are educated. The educated figure it out and more opportunity to do so.

Anonymous said...

There's a lot of money out there to be made. But who's smart enough to make it? Never a problem, only answers.

-Chynna Greene