Comments on: Rising unemployment gravest threat to U.S. and UK http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: pohlmann http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-8253 Fri, 20 Feb 2009 08:52:57 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-8253 Sleeping and corrupted governments have never helped to find th e right fix.
Why have the house prices not been fixed at the time ? That would have stopped speculation in the housing market right in its tracks.
Why are billions send to the banks that screwed us up in the first place. It would be much better to offer these billions to an independant office that UNBUROCRATICLY hands out a certain amount to people that want to open their won business. Requirement – you have to hire 3 people. The government would pay 80% of the salary for 2 years (that is still better than to pay unemployment and has probably a better chance for the future too). Result from this action would be new jobs right away. Yes sure, some companies would fail but so do banks and their investments. Looking at the GM bailout – my god you can build 2 new car factories in the USA for that amount of money and probably they will manufacture better cars that last longer and are more on the market.

Cheers
Peter

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By: dv http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-8021 Mon, 16 Feb 2009 08:57:29 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-8021 I liked that piece on the service economy. The US gurus used to urge other countries, Japan and Germany in particular, to go its way and deindustrialize. The problem is that rebuilding manufacturing capacity is not easy and will certainly spike inflation, leading to sharp drop in living standards. It is not clear for how long the rest of the world will be prepared to go on exchanging their goods for the US paper currency and the US will tolerate trillions of dollars accumulating in Asia and elsewhere. So far US administrations, especially the Clinton one, have been very successful in depreciating other countries dollar reserves by understating inflation and thus keeping yields on treasuries below inflation. But is it going to last forever?

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By: Guy Littleford http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-7974 Sun, 15 Feb 2009 00:41:29 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-7974 This situation is starting resemble the Great Depression…I suggest we start another war. A big one. After all, it did the trick last time.

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By: norman zelvin http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-7967 Sat, 14 Feb 2009 21:00:33 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-7967 Growing unemployment feeds on itself.It also reduces the opportunity to sell more housing . In fact it is the basement of any structural change to the point that it might be wise to consider the 1933 or 4 programs FDR initiated……the WPA and CCC. Both programs performed useful tasks in all fields and gave employment and pride to many . The The US Army Corps of Enginers as other federal organizations have programs that are ready to go and need financing why not combine the two as in was done back then?

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By: L Marceau http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-7916 Sat, 14 Feb 2009 01:19:17 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-7916 YOU ARE CORRECT….IT’S UNEMPLOYMENT STUPID….Yes the “housing bubble” brought the house of cards tumbling, but now the real catalyst is the increasing jobless rate. I was “laid off” last June. I have to say I wasn’t terribly upset then. I thought “oh great I can start something new”…I like change, but after the first few (really few) opportunities vanished, my enthusiasm for my “new life” started to wane. I have now been jobless for 8 months. I have never in my life not been able to find a job before. Of course, living in Kentucky doesn’t help, but I’ve been applying for jobs all over the country. I’m willing to go anywhere and unfortunately “anywhere” is just as bad as “here”. This is unlike any downturn I’ve ever experienced. I know it’s ‘different” this time and quite frankly I’m scared. Luckily for me I have a pretty good financial cushion, but I can’t help but think of all the people that don’t..and thats a lot of people, on the edge of total poverty. The Obama administration needs to start some kind of direct incentive to companies to KEEP the workers they still have, or as you said…no banking rescue will work…it’s way beyond that now.

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By: dr. o http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-7891 Fri, 13 Feb 2009 19:10:10 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-7891 You and I cannot get out of debt by borrowing more money – neither can the the fed gov…

A service economy only works when the cash flow through the system is always rising… It collapses in an instant when the cash flow starts shrinking – as it now has… The reason is that you and I are simply trading dollars, you wash my car and I fix your lawn mower, it is a zero sum game and neither of us are creating any new dollars… The instant you are a dollar short on paying my bill because some dollars have leaked out of the circle, I instantly refuse to do another lick of business with you…

The only activities that inject new money into that closed circle of service economy dollars are farming, mining, and manufacturing (all wealth creating activities fit into one of the three)

Farming in this country has been hard hit by imported food – which sucks more dollars out of the circle in addition to suppressing wealth creation by our farmers…

Mining is in decline… Looking ahead a generation, other than coal we do not have much in the way of exploitable resources left…

Manufacturing is on a death bed… Between the EPA, the nimbys, the tree huggers, the labor laws, the unions, the courts, and the faceless horde of permitting and taxing bureaucrats (at township, county, state, and federal levels), it is all but impossible to open a manufacturing plant in this country… Don’t believe me – try it…

IF Mr. Obama were to ask my advice it would be succinct… In the short term we have to stop imports of anything we CAN/SHOULD manufacture ourselves – stop the bleeding.. Oh yeah, the other countries are going to scream and foam at the mouth, so what? We cannot trade with them if we go bankrupt, so they are losing nothing in the long run and they will benefit when we can start trading again…

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By: dv http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-7747 Thu, 12 Feb 2009 12:12:22 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-7747 This is rediculous. What seems to be suggested is that America should buble its way out of the crisis with alternative energy buble. Other countries have invested far more heavily in alternative energy like wind, biofuel,hydrogen, solar. But everywhere alternative energy remains exensive and still cover only a tiny portion of energy needs. What America really needs to do is to stop relying on other countries’ savings to boost its own consumption. Do not fool yourself, America is no longer competitve in most sectors. The only way it could have sustained the level of consumption in the recent years is by selling CDOs to the rest of the world. There is this mantra that US financial system is the most robust and innovative in the world. That is really so, but name me a bank or company that has not lost money on US investment. Arabs, Japanese, Cninese all lost money in the US. What this amounts to is taking money and leaving your creditors in the cold. Such economies can be referred to as transactional economies. They do not produce much any more. In the US I heard one investment banker say – we provide a service of supplying reserve currency to the world. It is the most lucrative business, more profitable than weapons trading or drug trafficing, you do not need to do anything, but print money. There is one catch though – at one point you got carried away and people out there start wondering: “Do I really need all that green paper?”

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By: TS http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-7743 Thu, 12 Feb 2009 06:25:44 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-7743 The economy will revive when people are employed, they keep spending. That is the only way corporates can hope to stay in business and pay the people they employ.

The danger with government spending is that it is not market determined and any employment created as a result of that spending is not sustainable. Look at what happened with Japan. The govt undertook massive public works program and built bridges to nowhere. The spending was directed by political expedience.

I think Obama has got it right. Renewable energy is the way out of this crisis. The US can export its green technology and reduce its deficit as well as create jobs and ultimately lead to independence from oil. But that is a long term thing.

Something needs to be done immediately so that jobs are created and purchasing power stays intact, else more corporates will go down and more purchasing power will get eroded, leading to a vicious cycle

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By: ernest http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-7738 Thu, 12 Feb 2009 03:08:21 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-7738 rising unemployment is a concern

how about the rising level of crime, and the negative social issues associated with high levels of unemployment

i would be more worried about the latter esp. if i lived in an urban center with a fair amount of extreme income discrepancy in neighbourhoods(eg notting hill, brooklyn, camden, lower east side..etc)

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By: idle crane http://blogs.reuters.com/great-debate/2009/02/10/rising-unemployment-gravest-threat-to-us-and-uk/#comment-7736 Thu, 12 Feb 2009 02:05:17 +0000 http://blogs.reuters.com/great-debate/?p=1966#comment-7736 even with inflation to “reduce” the debt burden of individual and firms, employment might pick up because firms feel they are a bit rich again, but more significantly, wages to worker’s won’t increase inline with the rate of inflation.

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