Troubling thoughts about unemployment

Troubling - Think about the following for a minute. Manufacturing employment is at its lowest level since April 1941. Jobs in education and health care remain less affected. Our administration is proposing funding expanded education and health care spending yet manufacturing employment is at it's lowest level. Where is the money to come from to fund these expansions? If people aren't working to make something then there is simply no chance to generate the tax revenues to fund expansions. Jobs in education and health care will eventually have to suffer too! Can't anyone see this or am I missing something?

In my opinion it was wrong to have spent the stimulus money as we did and it's even more wrong to continue on this path of expanded spending without having figured out a clear and supportable path out of this mess. Everyone is rushing around screaming "crisis" and "urgent action is required" yet no one has proven they're capable of taking an extra moment to really think through any of these actions and the long and short term impacts. How many time are we going to flunk history!?

Consider how long it's going to take to integrate the unemployed back into the workforce. Consider how many are going to become addicted to unemployment compensation and then welfare. Living with their girlfriend and using her welfare, which they'll expand by having more children. No evidence this would be the case (sarcasm)!

"...A full 65% of all companies are still in the process of slashing their headcounts. The adult male unemployment rate has expanded to 10% as male-centric jobs in construction and manufacturing are slashed while sectors traditionally dominated by women, including education and health care, remain less affected. Manufacturing employment, which is showing some signs of stabilization, cut 63,000 jobs and now has its lowest level of employment since April 1941.

And there is also the problem of the rising ranks of long-term unemployed as more job losses are permanent rather than temporary layoffs. A full 54% of the unemployed are not temporarily laid off, while 33% have been looking for a job for six months or more.

The longer people are out of work, the more skills are lost and the harder it is to reintegrate into the work force. Not only is this socially damaging; but it reduces the potential growth rate of the economy. This is the effective speed limit at which the economy can grow without causing inflation."...


http://www.moneymorning.com/2009/09/08/bull-market-stocks/