Michael Blim
Heard enough about those “little green shoots” of economic recovery? Not finding them in your backyard garden? Not popping up in between the cement slabs on your stoop?
Perhaps this is because the only place the green is sprouting is on Wall Street and on the balance sheets of several mega-banks. The Dow Jones has hit 9,000 again. Goldman Sachs and JP Morgan reported hefty profits. Seems like old times.
But these are new and perhaps even better times for the masters of the money universe. They now operate with a full and explicit federal guarantee against failure, and many have made back their government loans at little or no expense. Even though the banks and big financial firms working through them laid us low, the Obama Administration seems to have passed out “get out of jail cards” to their operators. Unless Andrew Cuomo decides to play spoiler, the miscreants who triggered the world financial crisis will be back living large in no time. This is also because the proposed Obama financial regulation regime is so weak that it is even described as toothless by that paragon of 18th Century classical liberalism, the Economist.
Walk off Wall Street and you hit upon another world. Never mine no green shoots. There is instead massive die-off, as if the economic eco-zone had been ripped up by a financial Katrina and been left to molder.
The rot and decay of a near-dead economy lie all around us. There is universal acknowledgement that we will reach 10% unemployment in the fall. Every occupational category has been hit thus far, with rates of unemployment doubling since 2008 in computing, architecture, engineering, community and social services, health care technical services, construction, maintenance, repair, manufacturing, mining and transport. Already in double digits are food services, buildings and grounds maintenance, construction, farming, fishing, forestry, construction, mining, manufacturing and transport. In addition, state and local governments are laying off workers at unprecedented rates.
The unemployed are running out of benefits – an estimated 600,000 have run out of benefits since the recession began, and the rate at which workers will lose their benefits is growing exponentially as the stimulus package extension of benefits runs out.
I also counted 9 states and Puerto Rico as having forced furloughs of varying lengths on their workers thus far.
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