Re: Scary signs for jobs

[Guest guest]

This all just proves how worthless most economists are.

What's happening is incredibly simple: because of hard economic times people are spending less money. That translates into lower demand for goods and services. Lower demand means less of these goods and services are delivered and companies fire people. Fired people have less income so they too cut back, and round and round it goes.

Government stimulus and hiring distort the figures. A government worker is a drain on society because they are paid via tax money. To a point this isn't a problem, so long as they bureaucracies aren't overpaid and over staffed. However, it is the case now that that line has been crossed. So while the government hires people to make the unemployment numbers seem lower, they are actually making the economic problems worse because of the greater number of government workers that will have to be paid and provided other benefits.

This cycle is exactly what happened during the Great Depression. Leading up to it the economy was showing the same signs of underlying malaise that the US economy did before 2008. The same fixes were attempted, dumping money into the system to boost stock and other prices and to keep the stock market booming. The same collapse happened. Then people tightened their belts, exactly as now, and the Depression happened. Then government dumped in MORE money to cause inflation trying to force people to spend money and their savings, the same as it is doing now. However, that all runs out very quickly but the inflation keeps going.

Well, that's all I'll say on that. I will reiterate that most economists these days, their credentials couldn't be any less valid that if they had found them in a box of Cracker Jacks.

In a message dated 6/2/2011 1:14:12 P.M. Eastern Daylight Time, no_reply writes:

Scary signs for jobs