Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts

November 04, 2010

MUST READ: Juan Cole on what we must learn post election

I'd love to see this get lots and lots of tweets and shares .. ;-)
Yes, I am asking YOU.


1942 Midterms: Republicans win Popular Vote, Pick up 47 Seats in House; Roosevelt on Ropes; Pacific War Uncertain, Economy Slowly Improving

Posted: 03 Nov 2010 12:54 AM PDT

It was November, 1942. A year earlier the Japanese Empire had struck at Pearl Harbor and President Franklin Delano Roosevelt had finally entered World War II. Although in May of 1942 the US was kicked out of the Philippines by the Japanese, with Gen. MacArthur retreating to Australia, in June of 1942 the US wins a major battle against the Japanese at Midway. Still, in fall of 1942 the long, bloody battle for Guadalcanal in The South Pacific had not been decided. The economy had finally begun improving after the long years of Depression. The unemployment rate was reduced from 14.6 percent in 1940 to only 4.7 percent in 1942. Roosevelt faced midterm elections.

Would you really choose that moment to more or less return to power the party that had caused the Great Depression?

We might look back on these years of the “Greatest Generation” as heroic, and Roosevelt as unbeatable. But you know what? His Democrats lost the popular vote, losing big in the House of Representatives, and Republicans picked up 47 seats. Because of the way things were then districted, the Democrats did hold on to the House by a slim margin. But they were deprived of a comfortable majority (left with just a 13 seat margin). As the Los Angeles Times noted the day after the election, Roosevelt was left without a real majority, because he always faced defections on any vote. The paper breathlessly noted the dramatic fall of Democratic dominance from the party’s commanding position in 1936.

Remember, this is almost a year into World War II, troops are fighting and dying in the Pacific, and the economy is looking up. Roosevelt and his party should have benefited from his being a war president, and should have gotten some credit for having saved the country from the worst economic crisis of all time. Instead, the voters punished him.

Timothy Y. C. Cotton explains in his article, “War and American Democracy: Electoral Costs of the Last Five Wars,” The Journal of Conflict Resolution, Vol. 30, No. 4 (Dec., 1986), pp. 616-635:

‘ The attack on Pearl Harbor in December of 1941 brought home to Americans the sure knowledge that the aggressively expanding totalitarian powers on either side of them presented a real threat. At the time of the midterm election of 1942, the war effort was not going well. Voters seemed to turn from the Democrats, who were still enjoying the benefits of the recovery of the economy from the Depression. Despite strong economic growth in 1942, the GOP was able to cut substantially into the Democratic majority in Congress.

The lack of progress in battle was one reason the GOP fared better in 1942. Another was the imposition of wartime controls on the domestic economy. “During 1942 the Office of Price Administration instituted ten major rationing programs, while shortages in still exempt goods
drove their prices up, encouraged hoarding and forebode further rationing to come” (Blum, 1976: 227). Economic growth was being funneled into the war effort rather than consumer goods as part of the effort to build up the nation’s military strength. Labor unions were
obliged to lessen their demands and not to strike, given the critical need for maintaining the supply of the tools of war. Workers became resentful, however, thinking that they were being taken advantage of by management. These factors conspired to turn the voters against the
Democrats in 1942.’

Of course, the dynamics were very different than today, with the Afghanistan War even chancier than the then Pacific one, and with government intervening in the economy in different ways (bank bailouts, briefly taking over an auto company, stubbornly high unemployment closest to that of 1940 than that of 1942, health care reform).

An even more interesting story could be told about the 1946 midterms, when Democratic President Harry Truman, who had, like won World War II, saw the Republicans pick up an astonishing 55 seats and take control of the House. People were tired of long years of war and sacrifice and the Republicans promised prosperity through unleashing the free market.

But that’s American politics. Presidents often lose big in midterms, and especially when the public is nervous about foreign wars and domestic economic uncertainty. In a two party system and a corporate-dominated society, what else can one expect but a continual see-saw?


June 29, 2008

Massive Government and Private Sector Job Cuts Coming : Mish Shedlock

* Massive Government and Private Sector Job Cuts Coming -

http://feeds.feedburner.com/~r/MishsGlobalEconomicTrendAnalysis/~3/322336730/massive-government-and-private-sector.html

CNN Money is reporting State, city layoffs: 45,000 and counting.

With falling revenue from sales and income taxes, and property-tax declines looming, states, cities and towns have already laid off tens of thousands of government employees. The American Federation of State, County and Municipal Employees, a public employees union, says about 45,000 government layoffs have been announced this year.

There are 29 states, including California, Florida and Ohio, facing a combined budget shortfall of at least $48 billion in the fiscal year that starts July 1, according to the Center on Budget and Policy Priorities (CBPP), a liberal think tank.

There are nearly 20 million state and local government employees in the country. So a 1% decline in employment at cities, towns, schools and states would result in a job loss of almost 200,000 people, a much larger amount than we've seen from battered sectors such as automakers or home builders in the past two years.The effect of those layoffs will far outweigh any benefit of the economic stimulus package, much of which was already spent. We must use the word benefit loosely because government giving away money it does not have never produces any economic benefit.

Bank of America To Cut 7,500

MarketWatch is reporting Bank of America sees 7,500 job cuts after Countrywide close.

Bank of America Corp. (BAC) said Thursday it expects to make about 7,500 job cuts after acquiring Countrywide Financial Corp. (CFC) . Affected employees will start finding out their fate in the third quarter. "Citigroup to cut 6,500

The TimesOnline is reporting Citigroup and Goldman Sachs cut more staff.

Citigroup, America's largest bank, is expected to cut up to 6,500 investment banking jobs as much as 10 per cent of its roughly 65,000 headcount worldwide. It is believed that entire trading desks in New York, London and other cities will be eliminated. Senior managing directors will not be immune from the layoffs.

In April, Citigroup said that 9,000 jobs would go on top of the 21,000 eliminated in the past year. [This is yet another 6,500 - Mish]175,000 Financial Cuts Coming

Bloomberg is reporting Financial Firms May Make Deeper Cuts, Eliminate 175,000 Jobs.

The world's biggest financial firms may lose as many as 175,000 jobs by this time next year as Citigroup Inc. and other banks shed workers amid slowing revenue and billions in writedowns, executive recruiters say.

"The worst is yet to come," Russ Gerson, head of New York- based recruiting firm Gerson Group, said yesterday in an interview. "We are going to have a major contraction. This is affecting all areas of the investment banking universe and it's affecting all areas globally."

New York-based Bear Stearns Cos. is cutting more than 9,000 jobs, or 66 percent of its workforce, as it was acquired by JPMorgan Chase & Co. Zurich-based UBS AG has announced 7,000 job cuts, and Lehman Brothers Holdings Inc. has trimmed 6,300 employees.

The Independent Budget Office in Manhattan said in a report issued last month that it expects 33,300 finance jobs in the city, or 7.1 percent of the total, to be cut from the peak in 2007. The industry lost 52,500 jobs in New York during the 2000- to-2003 market drop.

About 17 percent of banking and securities jobs in New York were wiped out from 2000 to 2003, the Bureau of Labor Statistics said. The current round of cuts may claim 35 percent to 40 percent of the industry, said Gary Goldstein, chairman of New York-based financial recruitment firm Whitney Group.

"They just keep chopping heads," Goldstein said. "They'll wake up one day and realize that they've cut too deep and now these businesses have come back and they don't have anybody to do them."Goldstein Needs To Wake Up

This is the backside of Peak Credit.

None of the financial engineering jobs that fueled this credit boom will ever be needed again. SIVs, Conduits, Toggle Bonds, Covenant Lite loans are all dead for years, more likely decades to come. Add to that liar loans, Pay Option Arms, insane leverage, and numerous other ridiculous lending arrangements. And if those things are not coming back, we do not need Wall Street shills to securitize that garbage and pitch it to unsuspecting suckers.

More Mergers Coming Up

There are undoubtedly more bank mergers coming up. The strong swallow the weak to the point the strong become weak. And with each merger there will be more job cuts, massive job cuts. Bank of America's announced cutback of 7,500 related to its acquiring Countrywide is just a small down payment of what's coming down the pike.

Unemployment is poised to soar. Few are prepared for it.

Mike "Mish" Shedlock

http://globaleconomicanalysis.blogspot.com

February 10, 2008

Poverty and unemployment - let's start taking a look

It is said, the news stories on umemployment, housing and poverty are sadly lacking.

You've undoubtedly noticed this yourself.

If they can manipulate job statistcs, they'll do that in the business sections of a MSM news source - BUT the story about the real amount of poverty and its symptoms are desperately hard to come by.

This is my attempt to start off a discussion about a most troubling situation - one that as the economic Klusterfuck takes bigger hold, should become much more high profile.

Let's start DIALOGUING! We owe it to our children to look at the troublesome issue rather than ducking and running. Then we'll know how to make real recommendations to policy makers - should we finally kick the neocons out the door (and they come in insidious packages, looking like opponents when they are NOT.)

Veeger


Poverty and unemployment in New York City

Poverty and unemployment in New York City (map/graphic/illustration)

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Poverty and unemployment in New York City. The United States Census Bureau sets the poverty thresholds according to money income before taxes, excluding capital gains and noncash benefits, family size and number of children under 18 years old. These thresholds were developed by the Social Security Administration (SSA) in 1964, then revised by interagency committees (1969, 1981). They are adjusted each year using the annual average Consumer Price Index (CPI). For example, a single person under 65 years old who earns less than US$ 9,214 in 2001 per year is considered living under the poverty line (www.census.gov).











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