tagged w/ economic depression
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An economic nightmare is descending on Europe. With each passing month, the economic numbers across Europe get even worse. At this point it is becoming extremely difficult for anyone to deny that Europe is plunging into a full-blown economic depression. In fact, some parts of Europe are already there. In Spain the overall unemployment rate is over 22 percent, and in Greece one out of every five retail establishments has already been closed down. All over Europe, economic activity is rapidly slowing down, unemployment is skyrocketing and bad debts are unraveling. It isn't even going to take a default by a nation such as Greece or a collapse of the euro to push Europe into an economic depression. All Europe has to do is to stay on the exact path that it is on right now and it will get there. Normally, European governments would respond to an economic slowdown by increasing government spending. But this time most of them are already drowning in debt. Instead of increasing government spending, most governments in Europe are actually cutting back. All over Europe, national governments are being encouraged to implement even more tax increases and even more budget cuts. The hope is that all of this austerity will help solve the nightmarish sovereign debt crisis that Europe is facing. But unfortunately, all of these tax increases and budget cuts are also going to involve a tremendous amount of economic pain.An economic nightmare is descending on Europe. With each passing month, the economic... more
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The Blood and Sweat Behind Labor Day
By Kenneth Davis, Special to CNN
updated 10:56 AM EST, Fri September 2, 2011
PHOTO:
Scores of boys worked at the Breaker Pennsylvania Co. coal mine before child labor was finally outlawed in 1938.
STORY HIGHLIGHTS
Ken Davis: Today, labor under fire. But war for workers' rights was long, deadly struggle
There was child labor, 12-hour days, 6-day weeks, low wages, no sick days, holidays
Soldiers, militias, private armies used deadly force to break 19th-century strikes
Labor Day born in 1894, he says, but reform didn't come till FDR's fair labor laws
Editor's note: Kenneth C. Davis is the author of "Don't Know Much About History: Anniversary Edition" and "A Nation Rising." His website is www.dontknowmuch.com.
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(CNN) -- A small boy, perched on an open catwalk in a candy factory, falls to his death. No, it is not a macabre moment out of "Willy Wonka and the Chocolate Factory." It is a true story told by social reformer Jane Addams, who founded Chicago's Hull House in 1889.
Addams also described little girls who refused sweets as Christmas gifts that year. "They could not bear the sight of it," Addams wrote. "We discovered that that they had worked from 7 in the morning until 9 at night, and they were exhausted."
These Dickensian scenes lasted in America from the late 19th century until 1938, when child labor was outlawed under the Fair Labor Standards Act. They are a sobering reminder of why the nation marks Labor Day.
To most Americans, the first Monday in September means a three-day weekend and the last hurrah of summer, a final outing at the shore before school begins, a family picnic.
But Labor Day was born in a time when work was no picnic. As America was moving from farms to factories in the Industrial Age, there was a long, violent, often-deadly struggle for fundamental workers' rights, a struggle that in many ways was America's "other civil war."
It was a war fought when 12-hour days and six-day weeks were routine. Wages were low; there were no sick days, pensions or holidays. There was certainly no unemployment insurance. Any attempts at organizing were met by the combined wrath of business and government. The business of America was business.
That conflict, a period in which thousands of workers died in America's unsafe and unsanitary factories and mines, and hundreds more died in riots and pitched battles over workers' rights, is the little-noted history behind this holiday.
The first American Labor Day is dated to a parade organized by unions in New York on September 5, 1882, as a celebration of "the strength and spirit of the American worker." Their goals were simple: decent wages, an eight-hour workday and the right to organize. The September date was selected to provide a respite for workers and their families midway between July Fourth and Thanksgiving Day. By all accounts, the first Labor Day was a peaceful affair that drew tens of thousands of workers and their families to the city's Union Square Park.
But the path to a national Labor Day holiday was no walk in the park. The federal Labor Day was created 12 years later, signed into law by President Grover Cleveland during his second term in 1894. It's not that Cleveland was a great friend of labor. In fact, he had just sent out troops to break a strike.
During the economic depression known as the Panic of 1893, workers for the Pullman Car Co., one of the country's largest manufacturers, walked off their jobs when Pullman tried to cut wages, fire workers and evict them from their company-owned homes. They were joined by hundreds of thousands of workers in a nationwide walkout. Facing a strike that would shut down America's railroads, Cleveland dispatched 12,000 federal troops on the premise that the strike interfered with the U.S. Mail. In the ensuing violence, at least 13 strikers were killed.
This was not the first time troops had been used against American workers. Federal soldiers, state militias and private armies, often from the Pinkerton Detective Agency, had used deadly force to break many 19th-century strikes. Some of these strikes had become pitched battles, like the Homestead strike of 1892 in Pennsylvania. There, men on both sides armed with rifles and cannons died fighting over keeping a union at a steel mill, a union that owner Andrew Carnegie and manager Henry Frick were determined to break.
After crushing the Pullman strike, Cleveland thought that granting workers a Labor Day holiday was a sop that would appease them as he sought a third term. (It didn't work; he was denied the Democratic nomination in 1896.) Politicians and labor leaders were content to keep the holiday in September, far from the growing popularity of May Day as a commemoration of the "Martyrs of Haymarket Square," a group of union leaders executed -- unjustly, it was later proved -- after Chicago's deadly Haymarket Square Riots in May 1884.
For unions, Labor Day proved a hollow victory. Most of the reforms they sought did not come about for nearly half a century. The Depression-era fair labor laws that were passed under Franklin D. Roosevelt finally set standards like the eight-hour day and an end to child labor.
This history is worth remembering on Labor Day. But at a moment when American workers are battered by high unemployment, the Great Recession, a technology revolution in the workplace and globalization, there seems to be little to celebrate.
And these economic forces are only part of the relentless pressures faced by America's work force. There is also a renewed war over labor in this country. It is being fought in battleground states including, most notably, Wisconsin, Ohio, New Jersey and Florida, where mostly Republican governors are wrangling with public employees over pay, pensions and more fundamental issues including the right of collective bargaining.
Their sharp anti-union rhetoric has increasingly found receptive listeners who have been convinced that "spoiled" unions and public employees -- the people who fight our fires, teach our children and pick up our garbage -- are at fault for our budgetary woes and the sorry state of the economy. The fight has been vitriolic but well short of the violence of America's "other civil war."
With that in mind, it is worth recalling President Abraham Lincoln's words during the dark early days of the real Civil War. "Capital is only the fruit of labor, and could never have existed if labor had not first existed," he told Congress in December 1861. "Labor is the superior of capital and deserves much the higher consideration,"
Today, the first Republican president's words would count as heresy in the GOP. But they are a sharp reminder that working men and women built this country and fought its wars. And their labors are worth more than a Monday holiday or the mean-spirited contempt they now face. They deserve, as Lincoln said, "the higher consideration."
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The opinions expressed in this commentary are solely those of Kenneth Davis.
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The Blood and Sweat Behind Labor Day
By Kenneth Davis, Special to... more
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So, David Broder has concerns! The economic situation in America is presenting a "daunting situation" that could prevent President Barack Obama from "storm[ing] back to win a second term in 2012." (It also presents a "daunting situation" for millions of Americans who aren't the president, but just go with David here.)
How can Obama "harness the forces that might spur new growth?" Sure, there is "the power of the business cycle," but "economists struggle to analyze this," so Broder's not going to linger too long on whatever might be done in that arena. Instead, has anyone considered maybe -- I don't know -- bombing the daylights out of Iran?So, David Broder has concerns! The economic situation in America is presenting a... more
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An eerie calm has descended upon world financial markets as they await perhaps the two most important financial events of the year this week. On Tuesday, investors will be eagerly awaiting the results of one of the most anticipated midterm elections in U.S. history. On Wednesday, the Federal Reserve is expected to end months of speculation by formally announcing the details of a new round of quantitative easing. If either the election or the meeting of the Federal Reserve open market committee delivers a highly unexpected result, it could have a dramatic impact on world financial markets. In fact, many are looking at this week as a potential turning point for the U.S. economy. The decisions that are made or not made this week could set us down a road from which the U.S. economy may never recover.An eerie calm has descended upon world financial markets as they await perhaps the two... more
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Only a few days after the U.S. government reported that the economy expanded 2% in the third quarter on consumer spending, where they claimed that, "Household purchases, about 70 percent of the economy, rose at a 2.6 percent pace, the best quarter of the recovery that began in June 2009," a new conflicting report says otherwise.
http://globalpoliticalawakening.blogspot.com/2010/11/incomes-fall-consumer-spending-weakest.htmlOnly a few days after the U.S. government reported that the economy expanded 2% in the... more
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he job market is improving, but one statistic presents a stark reminder of the challenges that remain: Nearly half of the unemployed—45.9%—have been out of work longer than six months, more than at any time since the Labor Department began keeping track in 1948.
Even in the worst months of the early 1980s, when the jobless rate topped 10% for months on end, only about one in four of the unemployed was out of work for more than six months.
Overall, seven million Americans have been looking for work for 27 weeks or more, and most of them—4.7 million—have been out of work for a year or more.
Long-term unemployment has reached nearly every segment of the population, but some have been particularly hard-hit. The typical long-term unemployed worker is a white man with a high-school education or less. Older unemployed workers also tend to be out of work longer. Those between ages 65 and 69 who still wish to work have typically been jobless for 49.8 weeks.
The effects of long-term unemployment are likely to linger when the overall jobless rate falls toward normal, threatening to create a pool of nearly permanently unemployed workers, a condition once more common in Europe than in the U.S.
"The consequences are worse for those who can't find a job quickly," said Till Marco von Wachter, a Columbia University economist. They extend from atrophying skills to a higher likelihood of unhappiness and anxiety. Workers out of work for a long time tend to find it more difficult to find a job, and "the longer people are unemployed the more likely they are to eventually give up searching and thereby drop out of the labor force," Mr. von Wachter said.
The typical unemployed worker, regardless of occupation, had been unemployed for a seasonally adjusted 21.6 weeks as of April. Because of the deep recession, Congress extended jobless benefits to a maximum of 99 weeks in states with high unemployment. Those extended benefits will expire if Congress doesn't act; the Labor Department estimates that 19,000 jobless workers could start losing benefits in the first week of June. The House has voted to extend the benefits; the Senate hasn't yet.
While blue-collar and construction workers have been battered by the recession, they aren't the only ones hit. Unemployed production workers, including toolmakers, woodworkers and food processors, have been out of work for a median of 38.1 weeks. Unemployed workers whose most recent job was in management, business and financial operations have typically been out of work for 32.3 weeks.
Richard Moran of Ortonville, Mich., the state with the highest U.S. unemployment rate, hasn't had a job for two-and-a-half years. The 57-year-old, who was laid off from a testing and design job for Chrysler Group LLC, suspects his age is working against him.
Mr. Moran has attended two free training programs. The first, to become a corrections officer, ended at roughly the same time that Michigan was closing prisons amid tightening budgets. He recently finished an auto-parts design course to refresh his skills. "The certificates are piling up," said Mr. Moran, who also has a four-year college degree in mass communications.
While education is helpful, college graduates have also fallen into the ranks of the long-term unemployed. They represent 15.9% of the long-term jobless, compared with 14.9% of all unemployed workers. Those with high school degrees who haven't been to college comprise 40.7% of long-term unemployed, compared with 37.8% of all unemployed workers.
Mr. Moran's wife earns a good salary at Baker College so the couple has been able to keep up on the mortgage and other bills, but they have cut back on extras. Meanwhile, their 19-year-old daughter snagged two jobs at a nearby mall. "It's very depressing when your daughter's got two jobs, your wife's got a good job, and you can't find anything," he said.
Mr. Moran said he feared the shame and anxiety of long-term unemployment would overwhelm him. He grew depressed and withdrawn before discovering free therapy sessions at a nearby college, which he now attends in addition to taking antianxiety medication. "It seems like no matter what I do, it fizzles," he said. "But there's always a hope."he job market is improving, but one statistic presents a stark reminder of the... more
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~y2010m3d2-Great-Depression-20-on-the-way Great Depression
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The more complex an economy is, the more fragile it is, and the more cataclysmic its disintegration can be. Our economy is, of course, in a different league of complexity to that of Roman Britain. Our pottery and metal goods are likely to have been made, not many miles away, but on the other side of the globe, while our main medium of exchange is electronic, and sometimes based on smoke and mirrors. If our economy ever truly collapses, the consequences will make fifth-century Britain seem like a picnic.
http://www.ft.com/cms/s/0/4b44d88e-ef39-11de-86c4-00144feab49a.htmlThe more complex an economy is, the more fragile it is, and the more cataclysmic its... more
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Here’s the difference between a recession and a depression as defined by Bloomberg Business News:
A recession occurs when a nation’s living standards drop and prices increase. This downturn in economic activity is widely defined as a decline in a country’s gross domestic product for at least two quarters.
A depression is defined as an economic condition caused by a massive decrease in business activity, falling prices, reduced purchasing power, excess of supply over demand, and rising unemployment.
If this isn’t the beginning of a depression, it sure feels like one. Just check the daily headlines. On Monday, the Financial Times informed readers that “Gloom deepens as 75,000 global jobs go.” Among the companies laying off people were Caterpillar, General Motors, Sprint Nextel, Home Depot, Pfizer, and Texas Instruments. My guess is the General Motors declares bankruptcy by March.Here’s the difference between a recession and a depression as defined by... more
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San Francisco: The US economy has a 50 per cent chance of falling into a depression during the next three years, said Roger Farmer, a member of the National Bureau of Economic Research's economic fluctuations and growth programme.
"There's a significant probability things will get worse," Farmer, 53, said during a phone interview Friday. "We're certainly not at the end of the recession and things are getting worse."San Francisco: The US economy has a 50 per cent chance of falling into a depression... more
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The current economic downturn has been an absolutely unavoidable topic of conversation since September. The conversations range from the bleak and somewhat morbid, much like Husayns post on the future, to complete and utter denial. You can’t escape people making their own uninformed hypotheticals or predictions based on their paltry knowledge on the topic of economics.
“Oh really? Is that how the markets trending? I’m glad you’ve been keeping up with it, but if you wouldn’t mind pouring my coffee, I can be on my way.”
The truth is, as much as I’m hoping we somehow perform a little economic “coitus interuptus”, I think there are still things we can look forward too if we don’t manage to pull out. Maybe it’s just my hopeless optimism, but here are the top 5 things you can look forward to in an economic depression...
(The list continues at the Link)The current economic downturn has been an absolutely unavoidable topic of conversation... more
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(CNN) -- Memories of salvaging and stealing to avoid going hungry are part of the legacy of the Great Depression. Some iReporters say they can't help but look at the current economy and feel the past holds lessons for the present.
Pam Van Hylckama Vlieg says her grandfather tried to steal chickens after being laid off from coal mining.
Donna LeBlanc of Waxia, Louisiana, says she carries no credit to this day as a result of the frugality and self-reliance instilled in her by her family. Her husband keeps the couple's credit card and maintains a zero balance.
The Great Depression meant scary times for many households as a period of economic downturn spread throughout the world. Historians trace its start to the "Black Tuesday" stock crash on October 29, 1929, and argue that the resulting global desperation set the stage for World War II.
LeBlanc said her grandparents were fortunate that they didn't have investments and could grow -- or catch -- their own food during the Depression years.
Her grandfather Lester was a "Cajun cowboy" often seen wearing a cowboy hat, and her grandmother Ida was a resourceful woman who spent much of the 1930s working as a store clerk. LeBlanc, always told never to keep credit card debt, heard frightful stories from Ida. iReport.com: See a photo of the happy couple together after all these years
"She remembered vividly the barrels of flour, the bolts of cloth and the hunger in the faces of people as they begged for store credit," LeBlanc said. "The store must have been at least marginally successful, because my grandmother was able to purchase, a piece at a time, a complete six-person setting of Gorham Chantilly silverware for her trousseau, linens and even a Lane cedar chest to house her treasures."
The couple would catch wild hogs, feed them corn for a year and eat them once the wild taste was out of the scavenging animals. They also took advantage of available squirrel meat, a common food in the South at that time.
"It was a uniquely disgusting thing ... to see my grandfather take a stewed, skinned squirrel's head, smack the skull's dome with a heavy silver tablespoon, and dine on the brains," LeBlanc said.
Years after the Depression, LeBlanc's grandparents were well off once again. Ida became a packrat and couldn't help saving what she could. When the family opened up the old cedar chest after she died, they found a decades-old treasure trove of sewing materials and other keepsakes. iReport.com: "My dad used to cry when he spoke of that Great Depression"
The Great Depression turned many Americans into packrats who couldn't bear to part with anything of potential value. They couldn't always afford to buy what they needed....(CNN) -- Memories of salvaging and stealing to avoid going hungry are part of the... more
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