Talk about a disconnect.
Experts say U.S. economic growth has returned, signaling the end of the longest and deepest recession since the Great Depression.
But the good news for Wall Street — where shares have been running up — is showing no signs of trickling down to Main Street, where unemployment is flirting with 10 percent, foreclosures continue to rise and record numbers of families now depend on government-issued food stamps to make ends meet.
“For every person out of work, for every family facing foreclosure, for every small business facing a credit crunch, the recession remains alive and acute,” U.S. Treasury Secretary Timothy Geithner said in testimony to a congressional committee.
“Many people you might have called middle class or working class before have been ground down toward poverty or even destitution,” said author Barbara Ehrenreich, who has chronicled America’s working poor during her career.
While most Americans either fret about a job loss or deal with the financial devastation of joblessness, the income gap between the super rich in the United States and the average Joe is the largest since the 1920s. Nearly one-sixth of the U.S. population is uninsured. And, contrary to popular belief, Americans are less likely to move to a higher financial status than people who live in “socialist” countries like Germany, Canada, France or Sweden.
Many economists, who warn that the U.S. economy is in for a “jobless recovery,” caution that the turnaround is on fragile ground.
“Sure the economy’s standing up on its own legs again, but for how long once the government stimulus starts to fade? That’s the million dollar question for the nation’s unemployed, all 15.1 million of them sitting idle through no fault of their own,” said Chris Rupkey, an economist with Bank of Tokyo-Mitsubishi in New York.
“We’ve got a long way to go,” U.S. President Barack Obama said.
(Additional reporting by Emily Kaiser; Reuters photo)
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6 comments so far
In my experience as part of the newly destitute American Society, I have resolved a theory in Physics which is being considered by CERN, I have created several business models, all which have been infringed (”PIRATED”) by one unregulated US Corporation.
I do not receive health care, though I suffer from chronic anxiety being involved as a VICTIM of a major SECURITIES FRAUD, I receive no food stamps, I receive no wellfare, child support or Unemployment Benefits. I liquidated 100% of my assets, retirement and child’s college fund to survive the SIX (6) Year ordeal.
If the US Government was WORKING, I would be #197 on the Forbes 400 world’s wealthiest.
Instead, I spend my days complaining and looking for minimum wage work.
America has a reason to be upset with Wall Street and the US Government that has not fullfilled their duties to regulate and the catastrophy this has caused to every American.
It is time to punish them as harshly as they have punished us.
- Posted by James Reginald Harris, JrThe recession isn’t over…come on! It’s just before the holiday shopping season of course the “recession is over” – nice way to try to bust consumer confidence…Expect a lot more stores to close after the holiday season and into the New Year…maybe even a double dip in the economy…expect 12-15% unemployment in the New Year too!
- Posted by EricUnemployment under eight years of Bush less than 5%, unemployment under Obama in nine months plus a few days almost 10% and growing. Now this is a change that only Barrack Hussein Obama can believe in.
- Posted by peanutpeanut
- Posted by peanutbutterShow a little more knowledge of economics before you post. The loss of credit and the financial instruments that sunk our ship were 20 years in the making. Your line of reasoning is not grounded in economic facts. That’s no different than saying Clinton ran a good government because he has a surplus. That too is correct but the causes were many years in the making and he was the guy who got lucky with timing.
JUST A QUICKIE FOR PEANUT:
“…The unemployment rate reached a 26-year high of 9.8 percent in September,UP FROM 7.6 PERCENT from when President Barack Obama took office in January. Economists project the jobless rate will exceed 10 percent by early 2010.
- Posted by danySince the RECESSION BEGAN IN DECEMBER 2007, the U.S. has lost 7.2 million jobs. Payroll cuts peaked at 741,000 in January before falling to 263,000 job losses in September.” (FROM BLOOMBERG)
The recession is not over, as a matter of fact it’s just getting into full swing. This is merely a publicity stunt by the government to attempt to sway public opinion. They are intent on making as many people dependent on the government as possible, thereby creating a government run state. Some call it socialism. The sad thing is that it’s working because too many people continue to do nothing about the run away policies of the current admininstration. It’s simply a matter of not reelecting any current politicians, from the local good old boys, to the congress, and not electing anyone who’s held office in the past. Email your representatives and tell them that you’re fed up with this. It works in other countries. If we don’t get a handle on this, it’s going to be very bad for the people of this country.
- Posted by Frank