Where are we going?
It seems strange that government and banking officials would even utter the words "jobless recovery" when we have become a domestic consumer based economy dependent on jobs tp function.
It would be one thing if we were an export economy and produced stuff to sell to others, like Japan...we used to be, but we are not anymore , we are an economy almost exclusively dependent on our citizens and government to consume. We can only consume if we have jobs.
If Americans don't consume, America has basically no economy and the world has serious issues.
BAE Systems to Cut 1100 U.K. Jobs
JAL to Cut 14% of Work Force
Chrysler sales are expected to fall sharply in September
Volvo Aug. truck deliveries down 52%
The above are merely a sample of headlines in today's news. Based on recent headlines, it appears the job cuts are accellerating...not just in America, but around the world. The declining tax receipts seem to support this thesis.
The more jobs that are cut, the fewer that can spend...and with many who own homes, pay property taxes and health insurance, own autos etc...the minimum monthly expenses in America can be burdensome with no employment and little prospect for income.
We are seeing mortgage defaults growing rapidly, this does not only distress the home with the defaulting mortgage, but impacts all the homes in the neighborhood.
Something just seems strange, we are constantly told things are getting better while the evidence directs that conditions are getting worse. Not only that, as fewer are working, the tax receipts to government are continuing to decline as the expenses for government are government are growing.
Unless we lower the expense level of America for Americans...it seems like fewer and fewer will be able to make ends meet as more and more lose their jobs....any thoughts as the banks hoard money and interest rates are increasing for tens of millions of families? The banks that we taxpayers bailed out and allowed to mark assets to myth.
Whatever you want to believe, it is getting clearer that as economic conditions deteriorate, stress and anger is rising. It is important to be aware if this as sometimes less than rational behavior can result.
Again, this is not the end of the world...simply the end of the consumption economy and how do we deal with it? Bail out Wall Street and let the people starve?