Although the signs were obvious in the Fall of 2008, I have long argued that the crash – this “Great Recession” which is really a government-induced panic and crash – really a depression in so many ways – really hit its stride in 2009. Thus I have used this expression “Crash of 2009” to make that point since then. This week, new official figures are used to lie – as usual – about how things are getting better. They aren’t.
The following stories from CNSNews.com show the truth of the matter: the economy of the formerly united States is still in the toilet and conditions are not getting all that much better. My comments on each of these follow:
60 Straight Months of Unemployment at 7% or Higher
Nathan: This is only the official rate: the unofficial rate (measured in the old ways, and not playing games about how people quit looking for work and the ‘underemployed’) seems to be about 4-5 times higher: 28-30% nationwide, with many areas in the 40% range. This is insane, and rests squarely at the feet of idiots who make decisions and waste money in ways that harm the economy locally and nationally. Meanwhile, as the next story reminds us, the so-called signs of recovery are NOT.
338,000 Added to Gov’t Payrolls in November; 41% of Net Additional Jobs
Nathan: Actually, additions to government payrolls are a double-whammy on the economy. More tax money (or borrowing) is sucked out of the economy to pay for these people, further reducing the money available for investment – REAL investment – to create new jobs. The government becoming a bigger and bigger part of the economy is NOT ending the crash, it is extending it. And may trigger another big dropoff in economic activity.
CBO: Top 40% Paid 106.2% of Income Taxes; Bottom 40% Paid -9.1%
Nathan: This is an interesting way of recalculating it, but it makes sense. As “libertarians” propose guaranteed annual basic incomes, in an insane twist, we see that a form of that already exists: more and more subsidies for the “bottom” two-fifths of the income chart mean that people aren’t paying income taxes (although they are paying social security, medicare, medicaid, sales and excise taxes, we must remember). So the top two-fifths, and especially the top 10% pay more and more. Even while many of the “elite” (in that top ten percent) scream about making the wealthy pay “their fair share” (and work carefully to ensure that they personally are not made to pay it.
31.9%: U.S.-Mexico Border City Leads Nation in Unemployment
Nathan: Yuma, Arizona, home of a USMC base and on a major east-west Interstate highway, shows how badly damaged the economy is: this is the OFFICIAL rate – based on many other locations, the unofficial and real rate is probably 60 percent or more: reaching levels achieved during the Great Depression (before the military buildup leading to WW2 US involvement) and that found on Indian Reservations. This is a sick economy. Very sick.
1.7%: Metro Areas Near Canada Have Nation’s Lowest Unemployment
Nathan: Literally on the other side of the nation: this is in large part due to the fracking boom and the Bakken Play in Montana and North Dakota, supported by larger cities in North Dakota and Minnesota. The headline is misleading, because Detroit and the Rust Belt cities along the Great Lakes are NOT part of this. I don’t know about Vermont – except that maybe the Green Mountain folks are starting to ignore the feds and do their own thing? Point is – ND is the major area and it has as little fedgov involvement as can be found: a couple of military bases and a couple of small national parks and small national grasslands (like national forests but with fewer trees – and employees). But even there, the economy is DAMAGED by federal actions: the Keystone XL pipeline garbage for one. And because tens of thousands of people are trying to flee their own crashed economies for the hope of North Dakota. Especially by young people, as the next story touches on.
Youth Unemployment: 20.8%
Nathan: Again, this is the official: and even the official numbers show black, Hispanic, and AmerInd youth to have incredibly high unemployment, while real numbers are insane: 50%. This is damaging the economy for decades, as these people are not learning to be anything but dependent on government, on family, and on charity.
Nathan: In sum? The economy is a mess in 95% of the nation, stagnant, crippled by stupidity in government and its crony big-business partners, and people are hurting. And nothing says anything but that it will get worse. Government employees at almost every level are a privileged elite who more and more are lording it over the rest. More sectors (like health care) are being trashed as we speak. It WILL get worse. And there is more to come, as the next story warns:
Banking Proposals in United States and Britain Threaten Growth
(Cato Institute via Daily Policy Report (NCPA)) New banking proposals in both the United States and United Kingdom will have adverse effects on credit availability, global capital flows and the world economy as a whole…
Nathan: Is this adding insult to injury? Yes (and the next story shows even MORE insulting behavior by the FedGov). It is as though the intent is to make matters worse. As quickly as possible. You can be sure that this is written to protect the corporations and their big investors – and increase their profits – while still damaging small and mid-size business, their owners, and the economy as a whole.
Abominable Act (ObummerCare) – Congress in Action
Obamacare Reg Treats Congress That Spent $3.5 Trillion as a ‘Small Business’(CNSNews.com)
Nathan: Congress WROTE this – and now they claim that they know nothing about it – but the majority of them (Dem and GOP) are busy signing up for it. Please, even if they didn’t read it (Nancy’s famous quote), they are STILL responsible for it. They are the elite, they are going to reap every possible benefit from it, and stick it to their voters. And laugh secretly about it. Is it any wonder that they are fearful of armed people who are NOT getting paid by them?
Mama’s Note: Meanwhile, Obummercare threatens to destroy volunteer operations at every level, even volunteer fire departments, and is very likely responsible for stories such as the major ambulance services in 6 states that shut down on Friday. Get ready for a terrible cascade of these “unintended consequences” of government “affordable care.”