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Posts Tagged ‘economy’

Employment News Grim

In Uncategorized on June 10, 2011 at 8:01 am

Corporate profits are at record highs. The economy is producing as much as before the downturn. Yet business spending goes more to equipment purchases than hiring employees. Consider the following:

• Equipment purchases are up twenty-six per cent, aided by tax incentives.
• Most of the equipment is manufactured overseas.
• Equipment costs have dropped by two per cent since the recovery,

Yet news for workers remains bleak. There are seven million fewer jobs in 2011 than at the start of the recovery. Hiring by businesses is up only two per cent since 2009, the start date for the recovery. Labor costs have risen over six per cent during the period, mostly due to health care increases.

This is devastating news for working people.

The Long Slow Recovery

In Uncategorized on October 13, 2010 at 8:10 am

Recent economic news provided two important statistics. At the current rate of job creation, it will take nine years to get back the number of jobs lost during the recession. The unemployment numbers could get worse in the months ahead.

Median house prices have declined 20 percent since 2005. The outlook is that it will take thirteen years for housing to recover its value. That explains why so many people own houses worth less than their mortgages.

Commerical real estate vacancy rates are high. So high, it may take a decade for them to get back to where the rates were.

It looks like a long road to recovery.

The Recession May Be Over But Where Is The Recovery?

In Uncategorized on September 23, 2010 at 9:37 am

The recssion of 2007-2009 is officially over. It was the longest recession in 50 years. The economy lost more jobs during this recession than during any other recession since the depression. Unemployment is at its highest level since World War II, if you include people working part-time who wish to work full-time and those who have given up looking for work.

But for many people the recovery has not started. The enconomy has lost more jobs than it has added since June 2009 when the recovery began. And the outlook for job creation remains bleak. Many economists estimate that job growth seems likely to stagnate or grow worse in the near future.

People’s need for protection from creditors has never been greater. Loss of income remains the biggest reason for people to file for bankruptcy protection.

Thoughts On An Economic Recovery

In Uncategorized on September 15, 2010 at 3:02 pm

Is the economy going to recover anytime soon? Don’t look to the middle class to help. In a word, people are tapped out. Consider the following: since the 1970’s, income for the average worker has not kept up with inflation. That means sons are earning less than their fathers. Meanwhile, he costs for necessities like health care, energy, and education continue to rise. If you are struggling to keep your head above water, this is probably the reason.

The growth in earnings went mainly to those at the top. In the 70’s, the top 1% of earners had an 8% share of the nations income. Today 23% of the nation’s income goes to the top 1%.

So don’t look to the middle class for increased spending to fuel an economic recovery. They have their hands full just paying the bills.