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Shall we call it a depression now?

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Today's employment report, showing that employers cut 533,000 jobs in November, 320,000 in October, and 403,000 in September - for a total of over 1.2 million over the last three months - begs the question of whether the meltdown we're experiencing should be called a Depression.

We are falling off a cliff. To put these numbers into some perspective, the November losses alone are the worst in 34 years. A significant percentage of Americans are now jobless or underemployed - far higher than the official rate of 6.7 percent. Simply in order to keep up with population growth, employment needs to increase by 125,000 jobs per month.

Note also that the length of the typical workweek dropped to 33.5 hours. That's the shortest number of hours since the Department of Labor began keeping records on hours worked, back in 1964. A significant number of people are working part-time who'd rather be working full time. Coupled with those who are too discouraged even to look for work, I'd estimate that the percentage of Americans who need work right now is approaching 11 percent of the workforce. And that percent is likely to raise.

When FDR took office in 1933, one out of four American workers was jobless. We're not there yet, but we're trending in that direction.

Consumers will tighten their belts even further. Even if they have a full-time job, they're witnessing these job losses or hourly declines all around them and wondering if their job could be next on the chopping block. Their indebtedness is still high, by historic standards. And many are worried as well about their mortgage payments. So consumer spending is also falling off a cliff.

Two things are needed: First, the massive Treasury bailout of the financial industry must be redirected toward Main Street - loans to small businesses, distressed homeowners, and individuals who are still good credit risks. Second, a stimulus package must be enacted right away. It needs to be more than $600 billion - which is 4 percent of the national product. It should be focused on job creation in the United States - infrastructure projects as well as services. Construction jobs are critical but so are elder care, hospital, child care, welfare, and countless other services that are getting clobbered. Service businesses accounted for two-thirds of the job cuts in November, meaning that the weakness in labor markets has shifted from the goods-producing sector of the economy to the far larger services sector.
  • added December 08, 2008
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16 responses // Shall we call it a depression now?

  •  

    Shall we call it Bushession?

    wlwatkins
  •  

    Call it what ever you want to call it, it won't make it TRUE.

    daboz
  •  

    Some say the underemployed percentage is upwards of 18%. Please, check my post today for more info.

    bansheewail
  •  

    I know I'm depressed. Does that make any difference?

    nessie00
  •  

    dubya sure has taken this country to the woodshed.sonofabitch.

    stuburns
  •  

    Call it whatever you want.

    Seems the shepherds as well as the sheeple are all in denial.

    Change is coming, but it's not what everyone had planned.

    Pareo Nullus

    1percent
  •  

    I will recomend to all of you to buy food and store it in your homes , prepare yourself because things in this country are going to turn ugly.The goverment is not telling you the truth.
    Crime rate is going to get high because people wont have money .
    So you better get yourself some protection by a shotgun and bullets, i mean lots of it.
    Police are not going to be able to protect everybody, youll see.

    Tayllerand
    1 response to this
  •  

    I think if you call it a depression it could become a self fulfilling prophesy, if you call it a recession, thus the same result.

    arcticspirit
  •  

    I have been in recession mode for several years now, so the downturn in the economy is something I am somewhat prepared for and as a result, I am still happy with my life and each day regardless of the recession....now, don't get it wrong; I am not rich by any means, but I am blessed....

    BFAM_RVS
  •  

    i dont understand why people dont support a cheaper standard of living.

    Maitereya
  •  

    I call it a Hot Mess with Ass in the middle of Hot and Mess.

    tanyetta
    1 response to this
  •  

    An economic depression is usually defined as at least a 10% annual decline in Gross Domestic Product (GDP). We haven't yet experienced ANY decrease in economic growth, that is we are still growing although at a reduced rate.

    guidedtotarget
  •  

    i call it a sh!+ pickle.

    Nephwrack
  •  

    Well it depresses me!

    Bob Williamson
    Chair Greenhouse Neutral Foundation
    Author of ZERO Greenhouse Emissions - The Day the Lights Went Out - Our Future World
    www.strategicbookpublishing.com/ZEROGreenhouseEmissions.html

    GreenhouseNeutralFoundation

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