11.10.9...No Jobs No Recovery
10.2% U3 Unemployment Rate
17.5% U6 Unemployment Rate
22.0% J. Williams Adjusted Unemployment Rate
30-40% Alstrynomic Functional Welfare Adjusted Unemployment Rate
We are at over 20% unemployment rate and we still have not contemplated the 16,000 job losses at Merck, the 8000 job losses at J&J, the 7,000 job losses at Nokia.....plus
September and October Tax receipts are coming in much lower than expected forcing cities, counties, and states to take drastic actions to reduce costs in including massive job cuts.
In America, our economy is driven by domestic consumer consumption.......and there is no Bigger consumer than our government.....and with revevnues to our government evaporating....any potential for recovery is IMPOSSIBLE SINCE GOVERNMENT SPEND IS 50% OF GDP!!!!!!.
Where the BIG PROBLEM sets it is we are losing massive numbers of jobs despite running a $2 TRILLION DOLLAR deficit....approaching 20% of our contracting GDP. With $2 Trillion dollars sloshing around, we should be growing at unprecedented rates. Deficit spending is why health care and education is maintaining relatively better than other areas of the economy.
Our private economy used to drive revenues to our government which in turn spent back into the economy. But now, the largest components of our private economy are in the depths of an unprecedented DEPRESSION.
Auto Sales DOWN 50%.
New Home Construction DOWN 75%
Commericial RE Sales DOWN 50%.
Commerical Construction Grinding to a HALT after 11.10.9.........
Architects facing 60% unemployment
Travel DOWN 25% and deteriorating.....
Production in our nation was focused on the above industries. The above were HUGE drivers of revenue to government that ONLY NOW are really being felt by MASSIVE government cut backs at every level. An issue going forward will be the massive debt burdening our cities, counties, states, schools and hospitals....as revenues decline decisions between servicing that debt and paying employees will be central.
In America, an economy that is no longer production based and producing very little based on its GDP...as a service economy....our economy is jobs, primarily jobs, and really jobs is what drives income, spending and tax receipts.
I am not sure how job growth can be a lagging indicator when jobs are the source of revenues in a service economy. Now that we are about to lose millions of government jobs due to evaporating tax receipts....any outlook for growth seems illusory under the current structure.