Invest Intelligence When It Realy Matters
The Real Reason Why Unemployment Will Remain High
It took quite a long time for Washington to finally concede something that was apparent; the nation’s excessively high unemployment rate would remain elevated for several years. But their admission has come with a twist.
Instead of pointing to the true reason for this demoralizing reality, establishment economists have offered some ridiculous excuses to account for America’s persistently high unemployment rate. The purpose of this propaganda campaign is to place blame on unemployed workers, rather than address the misguided economic policies established by America’s fascist government.
Why is it important to properly identify the source of persistently high unemployment?
Only by properly identifying the real reasons for the elevated and chronic level of unemployment will adequate solutions be possible. It follows that if the true reasons accounting for this worrisome trend are not identified and acknowledged, America stands a good chance to lose much more than a decade. We are talking about the continued and permanent decline in living standards for the middle- and working-class.
Let’s look at some facts.
• There have been between 5 and 6 unemployed Americans for every job opening since mid-2009, suggesting a shortage of jobs. This ratio is roughly double what it was in the last recession and reflects, in large part, that job openings are one-fourth lower now than they were in the last recovery.
• In the first 12 months of this recovery there were 32.0 million job openings, 10.0 million fewer than the first 12 months of the prior recovery, one known for being a jobless recovery.
• The shortfall of job openings in this recovery compared to the last one is pervasive: it is evident in nearly every sector including labor intensive service industries such as hospitality, entertainment, and accommodation. Construction is responsible for just 6% of the overall shortfall in openings in this recovery compared to the last one.
• Layoffs during the early stages of this recovery are comparable to those in the prior recovery, and cannot explain high unemployment.
In attempt to identify the cause of the persistently high unemployment rate, two arguments being debated by America’s highly controlled and delusional opinion-makers, otherwise referred to as establishment economists.
Let’s take a look at each of these misguided viewpoints. Establishment economists working for the left-wing contingency of America’s fascist government claim that the high unemployment rate is merely a consequence of cyclical unemployment, which is related to changes in demand that occur through business and economic cycles. During the first two years of the Obama presidency, the cyclical unemployment argument was unanimously accepted.
In contrast, establishment economists working for the right-wing contingency of America’s fascist government claim that the persistently high unemployment rate seen in the U.S. is due to structural factors. Thus, according to these hacks, the lack of growth is due to what is known as structural unemployment. More recently, the structural unemployment argument has been disseminated for the sole purpose of increasing the momentum of the Republican Party going into the 2012 elections.
As you will see, both arguments are wrong. Each argument has been offered as the only explanation to account for the persistently high unemployment rate in order to distract Americans from the real cause. Without surprise, it turns out that both arguments support the long-term trend of boosting corporate profits at the expense of working-class livelihoods. Thus, both arguments are supportive of America’s fascist government, whether we are talking about democrats or republicans. [1]
The table below represents the official data compiled by economists at the IMF (as well as a large contingency of establishment economists in the U.S.). They have used this data to conclude that most industries are facing unemployment due to structural issues. As you can see, they have concluded that most job losses have been due to structural factors.