Lisa Simpson
Jun 15,2010
In: Foreclosure

The Deep Hole of Unemployment

The primary problem America is facing today is unemployment. The reports coming through are grim. It led to the tanking of the Stock Market. In May the private sector generated 41,000 jobs – something quite dismal. The government engaged 411,000 workers to assist in the census programme – all temporary jobs that will evaporate within few months.

Families are crushed by unemployment and the young are demoralized. But referring to the May figures the President said, “This report is a sign that our economy is getting stronger by the day.” Strange talk!

The economy is ailing and any measure that does not come face to face with the reality of unemployment is doomed to fail. The meagre improvement in the private sector numbers were all temporary assignments. Lawrence Mishel of Economic Policy Institute said, “These new data do not present a picture of a healthy private sector and offer nothing even closely resembling the job growth we need to dig out of a very deep hole.”

The figure is staggering – over 15 million are jobless and half of them have been so for six months or may be longer. Those newly graduating are finding it challenging to get employments while many are opting for jobs that do not require high degrees. Teachers are one of the worst affected. Entire neighbourhoods are sinking. For instance in Memphis, where the majority is black, the wealth of the Blacks has been destroyed by the financial and foreclosure crisis. The median earnings of Black owners of residential houses have gone down to below the levels of 1990.

The threat that this unemployment poses to the general welfare of America defies description. Who is going to spend? Those without jobs, houses and hope? Without the spending the economy cannot take off. The federal deficits cannot be handled unless millions return to work.

Some localities in inner cities have become isolated in their despair. Communities in the rural regions and the cities in the rust belt are going through their own brand of economic horror stories.

So far no proper plan has been formulated. If government decided to cut down on spending the crisis would become worse. But with no other alternative the state together with the local governments are slicing off jobs. Those who make policies are behaving like ostriches – pretending that the problem does not exist. They are just indulging in wishful thinking that by some magic the jobless nightmare will just vanish.

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