Unemployment Benes

[tw]

Originally Posted by freshnesschronic

I'm not expert on government, on anything really...I just hope those guys in the big offices create jobs for the college graduates ...

You know what to expect. This recession - the worst of three types - is created by overt and grotesque economic mismanagement. On schedule, the recession ended earlier this year. And jobs continue to be lost for another 18 months.

Government cannot create jobs. It can temporarily save jobs. Only innovation creates jobs. And that happens mostly in industry. History says it takes about 18 months after the recession ends for jobs to be created. Expect things to continue to be bad until maybe next spring.

Again, this is a recession created by economic mismanagement at the highest levels in the 2000s. We have it in America. Also ongoing in Greece, Ireland, and elsewhere. Classic examples of how money games by the corrupt and protected (tax cuts without spending cuts, bond market fiascos, Wall Street types doing what they do best - lying, Enron accounting, etc) years previously means everyone must be severely punished now. Same thing happens when Nixon lied about Vietnam in 68 and 70. No jobs throughout the second half of the 70s.

That concept should be taught in Economics. And is not. Appreciate why things will be so tough. Its not you. It is extremist politics that still say tax cuts create jobs. An obvious lie that could may prolong job losses. Jobs are only created after fiscal responsibility starts paying the bills - ie for Misson Accomplished. And are not created by the richest people who get all those tax cuts. Remember where you were when our leaders in 2003 were mortgaging your job prospects. And when these disasters were being predicted by some here in the Cellar in 2003.

Expect the job market to be bad until at least next Spring. A lesson from history and economic analysis of this type of recession. Companies that lead with new jobs will be ones that innovate.

[Lamplighter]

Expect the job market to be bad until at least next Spring. A lesson from history and economic analysis of this type of recession. Companies that lead with new jobs will be ones that innovate.

Then expect inflation to kick in as a result of the QE2 program of the Federal Reserve Bank.
Oh joy

[tw]

Originally Posted by Lamplighter

Then expect inflation to kick in as a result of the QE2 program of the Federal Reserve Bank.

The irony of this recession. Because so much wealth was created by inventing assets. By converting paper (ie mortgage backed securities) into assets. By inventing higher housing prices using money games. Therefore massive liquidity has simply disappeared. The average citizen was financially raped. Even with stimulus (ie $700 billion TARP), the amount of liquidity has diminished. Nobody realized how massive our fiscal corruption was. Bernie Madoff only an example of what was acceptable.

As a result, we are not suffering inflation. A fear (using Japan as a learning tool) is of deflation.

Unfortunately, too many economists believe money games can fix an economy. It did not work in Japan for 20 years. It never works. And still some economists are calling for 'healthy inflation'. Or something similar. Price increases. As usual, some economists that can see history also refuse to learn from it.

2000s is when all Americans were extremely wealthy (while the average American saw his income drop 2%). Wealth because tax cuts 'improved' the economy. Our political extremists told us so – even citing the Kennedy tax cut. Now learn from history and Kennedy’s tax cut. Money spent in 2000s means economics must take greater revenge in 2010s.

Massive government debts (ie tax cuts for the rich) meant everyone was wealthy (how good was it for you?). George Jr called that returning wealth to the people. Economics now takes a predicted revenge. All Americans must suffer today for tax cuts and other money games in the 2000s. Since this recession was created by financial games stealing from the public, deflation also exists.

We could start paying the bills and fix things. But wacko extremists want the richest Americans to only pay 16% while all others (including those who create most jobs) pay 22% or higher.

That is where your jobs have gone. Money games because "Reagan proved that deficits don't matter". If you do not know who said that, then you must be an ostrich. Deflation – not inflation – is another symptom of massive wealth squandered by the richest 5% Americans. So they need more welfare - more tax cuts - so that economics will take more revenge in 2020.