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Layoffs, Layoffs, Everywhere You Look There Are Layoffs

ilene's picture




 

Corporations are laying people off which will increase their profits and decrease the general growth of the economy. At the end of the last article I posted by Russ Winter, several seem to argue that corporations should not be paying taxes, and that might help them increase profits and spend their money more productively. Keep in mind that American companies that are moving operations overseas and getting out of paying taxes, do business in the U.S. and get considerable benefits from this country.

Here's a portion of a list provided by JW n FL (thanks):

3) General Electric made $26 billion in profits in the United States over the past five years and, thanks to clever use of loopholes, paid no taxes...

4) Chevron received a $19 million refund from the IRS last year after it made $10 billion in profits in 2009. (Source: See 2009 Chevron annual report here. Note 15 on page FS-46 of this report shows a U.S. federal income tax liability of $128 million, but that it was able to defer $147 million for a U.S. federal income tax liability of negative $19 million.)

7) Goldman Sachs in 2008 only paid 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion and received an almost $800 billion from the Federal Reserve and U.S. Treasury Department...

8) Citigroup last year made more than $4 billion in profits but paid no federal income taxes. It received a $2.5 trillion bailout from the Federal Reserve and U.S. Treasury...

9) ConocoPhillips, the fifth largest oil company in the United States, made $16 billion in profits from 2006 through 2009, but received $451 million in tax breaks through the oil and gas manufacturing deduction...

 

Layoffs, Layoffs Everywhere You Look There Are Layoffs

Courtesy of Michael Snyder of Economic Collapse 

The competition for jobs in the United States is absolutely brutal right now, and it is about to get worse. A new wave of layoffs is sweeping across America.  During tough economic times, Wall Street favors companies that are able to cut costs, and the fastest way to "cut costs" is to eliminate employees. 

After a period of relative stability, the employment picture in the U.S. is starting to get bleaker again.  New applications for unemployment benefits have now been above 400,000 for 15 straight weeks.  Finding a good job is kind of like winning the lottery in this economy. Our federal government and the state governments have made it incredibly complicated and extremely expensive to have employees on the payroll.  It is getting harder and harder to get a large enough return to justify the time and expense that hiring employees requires.  So many firms now find themselves trying to do more with the employees that they already have.  Other companies are turning to temp agencies as a way to reduce costs and increase workplace flexibility. A lot of the big corporations are sending as much work as they can overseas where the wages are far lower and where the regulatory environment is much simpler. All of this is really bad news for American workers that just want good jobs that will enable them to provide for their families.

When we first started seeing huge numbers of layoffs a few years ago, I encouraged people to look into government jobs because I thought that they would be a lot more stable in this economic environment.

But today that is no longer true.  In fact, state and local governments all over the United States are responding to massive budget problems by slashing payrolls in an unprecedented fashion.

Sadly, the reality is that the number of "secure jobs" is rapidly declining in America.  If you have a "job" ("just over broke") right now, you might not have it for long.  That is one reason why everyone should be trying to become more independent of the system.

Once upon a time the U.S. economy produced a seemingly endless supply of good jobs.  This helped us develop the largest and most vibrant middle class in modern world history.

But now employees are regarded as "costly liabilities", and businesses and governments alike are trying to reduce those "liabilities" as much as they can.

This summer the pace of layoffs seems to be accelerating all over the nation.  Just check out what has been happening over the past few weeks....

-Lockheed Martin has made "voluntary layoff offers" to 6,500 employees.

-Detroit is losing even more jobs. American Axle & Manufacturing Holdings has told the remaining 300 workers at its manufacturing facility in Detroit that their jobs will be ending in early 2012.

-Layoff notices have been sent to 519 employees of Milwaukee Public Schools, and more than 400 open positions are going to go unfilled.

-The Gap has announced that up to 200 stores will be closed over the next two years.

-Cisco has announced plans to lay off 9 percent of their total workforce.

-Chicago Mayor Rahm Emanuel says that 625 city employees will be losing their jobs as a result of cutbacks.

-Pharmaceutical giant Merck recently dumped 51 workers from an office in Raleigh, North Carolina.

-Perkins has revealed that they will be closing 58 restaurants.

-This week, Goldman Sachs announced that they will be eliminating 1,000 jobs.

-Cracker Barrel is rapidly reducing staff at its headquarters.

-Telecommunications and web marketing firm Crexendo has announced that it will be laying off about 30 percent of its workforce.

-Borders has announced that they will be shutting down their remaining 399 stores and that 10,700 employees will lose their jobs.

-Now that the space shuttle program has ended, thousands of NASA employees will be losing their jobs.

There are hundreds of more examples of recent layoffs and job losses. One website that tracks these layoffs daily is Daily Job Cuts.  It is pretty sad when there are entire websites that are devoted to chronicling how fast our economy is bleeding jobs.

What is worse is that it looks like the pace of layoffs is going to keep increasing.

One report that was recently released found that the number of job cuts being planned by U.S. employers increased by 11.6% in June.

That is not good news.

Things don't look good for employees of state and local governments either.

State and local governments have eliminated approximately 142,000 jobs so far this year.

That is bad, but this is just the beginning.

UBS Investment Research is projecting that state and local governments in the U.S. will combine to slash a whopping 450,000 jobs by the end of next year. Ouch.

Barack Obama and Ben Bernanke keep trying to tell us that the economy is improving, but that simply is not the case.  Yes, some of the largest corporations have announced big earnings, but that is not translating into lots of jobs for American workers.

Today, most large corporations only want to have as many U.S. workers as absolutely necessary.  In a world where labor has been globalized, it just doesn't make sense for corporations to shell out massive amounts of money to American workers when they can legally get away with paying slave labor wages to workers on the other side of the globe.

So if it seems like it is far harder to get a good job in America today than it used to be, the truth is that you are not imagining things.

Our entire system discourages job creation inside the United States.  Every single year, even more ridiculous job-killing regulations are being passed on the federal and state levels.  It has become extremely expensive and ridiculously complicated to hire people.

So how are American families surviving?  Those that still do have jobs are finding that wages are not going up but the cost of living rapidly is.  Many American families are making up the difference by using their credit cards more.

In June, credit card purchases in the U.S. increased by 10.7 percent compared to the same month a year ago.

It looks like a whole lot of people have not learned their lessons about how bad credit card debt is.

Millions of other American families have fallen out of the middle class completely.  Today, one out of every six Americans is enrolled in at least one government anti-poverty program.  The level of economic suffering in this country continues to soar.

In fact, the number of Americans that are now sleeping in their cars or living in tent cities remains at staggering levels.

What we are witnessing in this country is not just a "recession" or an "economic downturn".  What we are witnessing are fundamental economic changes.

Until there are fundamental policy changes in the United States, there will continue to be huge waves of layoffs and millions of jobs will continue to be shipped out of the country.

In the old days, one could go to college, get a good job with one company for 30 years and retire with a big, fat pension.

Now, that way of doing things is completely and totally dead. Today, there is virtually no loyalty out there. It doesn't matter how long you have been working at a particular job. When it becomes financially expedient to get rid of you, that is exactly what is going to happen.

It is a cold, cruel world out there right now.  Don't assume that you will always have a good job. The world is rapidly changing.

Don't get caught in the trap of believing that the way that things were is the way that things are always going to be in the future. 

 

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Sun, 07/24/2011 - 11:39 | 1487226 prophet_banker
prophet_banker's picture

Jim Morrison when asked if he was going to lead the masses in a revolution of change said, "Are you kidding, No, the people cling to the chains that bind them, those chains are their security."  Paul McCartney said, "The people have the power, they just don't know it so the people give away their power freely."  Call this uninformed consent.

The logistics of this meaning is that we the people don't have to use FRN Federal Reserve Notes, as Legal Tender is only required in payment for taxes.  100s of alternate currencies are already being used in America, social currency.  The Liberty Dollar, the only one that got convicted of conterfeit did so because the used the word "dollar".  We have been contracted into this corner and the solution is in contracting our way out; end fractional reserve lending debt slavery.

 

Bankers would have us believe it is their sole right to conjure into existence our money supply, and they tell government that it should not be in the banking business, and that money creation is best left to banks.  

 

Government should tell the bankers that money creation is the greatest sovereign authority of government, and banks should get out the government business of money creation.   This should be a policy referendum to be voted on.  Long live the State Bank of North Dakota, and the others that are soon to follow.

 

Sun, 07/24/2011 - 21:27 | 1489337 New_Meat
New_Meat's picture

Actually, that's why they are "hours" in upstate: e.g.

http://en.wikipedia.org/wiki/Ithaca_Dollars

although, well I provide you with a vision of Bawney Fwank doing the

"government business of money creation."

eeewwww,

- Ned

Sun, 07/24/2011 - 14:20 | 1487794 Kayman
Kayman's picture

The best move for this country is to fire the banking and corporate Welfare class that contibutes nothing to the country.

The big 5 banks would be a start, then we could go on to GE...

Ask not what Goldman can do for you, ask what you can do for Goldman....

Sun, 07/24/2011 - 11:26 | 1487191 prophet_banker
prophet_banker's picture

welcom to the new america

Sun, 07/24/2011 - 10:51 | 1487081 GCT
GCT's picture

Sorry double post

Sun, 07/24/2011 - 10:53 | 1487080 GCT
GCT's picture

Pretty soon everyone will be folding up if there is no one left to produce anything.  Learn a skill you can actually use and produce something.  I am a small business owner and like the post in Igiveup, I am just trying to survive right now.  Oh and next year I get to add a 3.9% medicaid support tax to my business.

By the way hello all my first post and I know you all are some ruthless and brutal folks.  But at least you call it like it is for the most part!  Some of you are down right scary!

Sun, 07/24/2011 - 14:27 | 1487817 Kayman
Kayman's picture

GCT

Welcome to Fight Club. Hope you like the smell of fresh blood in the morning. If you can stomach the trolls and the Jew Baiters, the rest of ZH is informative and challenging.

Sun, 07/24/2011 - 10:36 | 1487059 rsnoble
rsnoble's picture

I got layed off from an 80k job where I was a foreman and told it was because we're out of work.  1 week later the senior forman pulled in his brother who had been out of work for months.  3 years later his brother still works there and can't do half what I do.  And of course they aren't hiring, his brother was the last one hired.  So.....my lifetstyle went to complete shit cause some other bastard seen hard times coming and kicked my ass to the curb to save his fucking brother.  And of course the union officials didn't want to hear anything about it.  I withdrew from the union, I well NEVER work for or support a stupid fucking union again.

Sun, 07/24/2011 - 10:39 | 1487058 dwdollar
dwdollar's picture

It's comical to see the market rise as unemployment rises.  I mean that has to be a sign of a healthy or at least a stabilizing economy.  It just has to.  Right?  Haha...

Sun, 07/24/2011 - 10:00 | 1486980 Igiveup
Igiveup's picture

Posted Previously:

I am a small business man who up until the recession, owned three separate businesses and employed about 45 people between them.  This recession has caused me and thousands like me to modify my business plans to survive.  The new business model I operate under has not only allowed me to survive but prosper.  I sold one of the businesses, an insurance agency, to a competitor who eliminated 2.5 positions out of the 4 that existed before the sale.  He folded my book of business into his and with the help of his computer, believes he can manage the combined book indefinitely without adding people. 

 The second business, a restaurant, I closed.  Those jobs are gone forever, about a dozen.   Two of the three suites in the building sit empty now.  The third is rented to a self employed entrepreneur who has no employees.  The building which cost $430,000 to build in 1996 is on the market for $225,000, has been so for a year and there has been virtually no interest.  I think I’m going to die with it.

 In my remaining business I have reduced payroll expense, through consolidation, subcontracting and outsourcing of job by $200,000 or just under 27%.  Add in the payroll taxes, insurances and employee benefits and you are talking real money for a small business like mine.  This business made as much money in 2010 as it did in 2007 on less sales volume.  This new model allows for substantial growth without adding people.  Sure, the time may come when I have to add personnel or the people I work with have to add personnel but the number of jobs that have been permanently eliminated from my business is substantial and factor this process into the whole economy and, IMHO, the number is staggering.

 Anyone who owns a business today and isn’t on the verge of collapse has done the same thing I have.  There is no other option.  Those who have survived to this point are too smart to be tricked, coerced, enticed or forced, in any fashion, to return to a business model of someone else’s choosing.  If you believe otherwise, you need to get your medication changed.

There is a way out of this mess but it won't come by bitching on this site or waiting for the poiticians to do it. 

Sun, 07/24/2011 - 14:37 | 1487849 Kayman
Kayman's picture

 Igiveup

The 2 examples you gave are service businesses. The problem with this country is we have let politicians and myopic big business "outsource" American manufacturing.

Without a base, service industries falter.

Best of luck to you. 

Sun, 07/24/2011 - 09:34 | 1486928 geno-econ
geno-econ's picture

Its no fair! No mention of CT State layoffs of 6,500

Sun, 07/24/2011 - 08:30 | 1486831 MiningJunkie
MiningJunkie's picture

Imagine being shipwrecked in a desert island with thirty other people for ten years.

You work like a dog to clear land near the island's only river. You work day and night to develop arable land and begin to sow crops and harvest in the fall. You sell the grain for labour and fruit vended by other industrious individuals and amass sufficent resources to construct a mill using the river as a power source.

After five years, those who have toiled day and night to improve their lives have developed an economy which is providing enough to keep people sheltered, fed, and clothed.

Then one morning, a group of the island inhabitants arrive at your doorstep and announce that a new "Governing Council" has been formed to ensure that the inhabitants of the island are properly directed in areas of organization and education. They initiate their new "order" by informing you that thirty-percent of your harvest and twenty-five percent of your milling output will be expropriated to pay for the new expenditures authorized by the "Governing Council".

You organzize your fellow hard-working neighbours and within days, the members of the new "Governing Council" are tied, bound, and set out to sea adrift in a carved-out tree with a coconut full of water and their belongings, which, after five years on the island, were nil.

Life then continues on as before.

The End.

Sun, 07/24/2011 - 08:30 | 1486830 MiningJunkie
MiningJunkie's picture

Imagine being shipwrecked in a desert island with thirty other people for ten years.

You work like a dog to clear land near the island's only river. You work day and night to develop arable land and begin to sow crops and harvest in the fall. You sell the grain for labour and fruit vended by other industrious individuals and amass sufficent resources to construct a mill using the river as a power source.

After five years, those who have toiled day and night to improve their lives have developed an economy which is providing enough to keep people sheltered, fed, and clothed.

Then one morning, a group of the island inhabitants arrive at your doorstep and announce that a new "Governing Council" has been formed to ensure that the inhabitants of the island are properly directed in areas of organization and education. They initiate their new "order" by informing you that thirty-percent of your harvest and twenty-five percent of your milling output will be expropriated to pay for the new expenditures authorized by the "Governing Council".

You organzize your fellow hard-working neighbours and within days, the members of the new "Governing Council" are tied, bound, and set out to sea adrift in a carved-out tree with a coconut full of water and their belongings, which, after five years on the island, were nil.

Life then continues on as before.

The End.

Sun, 07/24/2011 - 08:30 | 1486829 MiningJunkie
MiningJunkie's picture

Imagine being shipwrecked in a desert island with thirty other people for ten years.

You work like a dog to clear land near the island's only river. You work day and night to develop arable land and begin to sow crops and harvest in the fall. You sell the grain for labour and fruit vended by other industrious individuals and amass sufficent resources to construct a mill using the river as a power source.

After five years, those who have toiled day and night to improve their lives have developed an economy which is providing enough to keep people sheltered, fed, and clothed.

Then one morning, a group of the island inhabitants arrive at your doorstep and announce that a new "Governing Council" has been formed to ensure that the inhabitants of the island are properly directed in areas of organization and education. They initiate their new "order" by informing you that thirty-percent of your harvest and twenty-five percent of your milling output will be expropriated to pay for the new expenditures authorized by the "Governing Council".

You organzize your fellow hard-working neighbours and within days, the members of the new "Governing Council" are tied, bound, and set out to sea adrift in a carved-out tree with a coconut full of water and their belongings, which, after five years on the island, were nil.

Life then continues on as before.

The End.

Sun, 07/24/2011 - 08:24 | 1486818 themisanthrope
themisanthrope's picture

Thus far the talk has been mostly about conglomerates and corporations, but this trend is no stranger to hospitals, which are also focused on the bottom line. Looking at things from the customer/client rather than the employee side, crappy goods and services as a result of the Ciscos and GEs and Home Depots cutting back I can live with, but crappy goods and services from the County Generals cutting back I can die from.

Sun, 07/24/2011 - 07:07 | 1486731 pazmaker
pazmaker's picture

I have intimate knowledge a large major distribution center(distributes to the east coast and west to Iowa).  This company is a major distributer of back to school products distributing to the walmarts, targets. kmarts, walgreens etc. The volume this year was 1/3 less than last year and it is looking like layoffs will commence.

Sun, 07/24/2011 - 14:42 | 1487869 Kayman
Kayman's picture

Yesterday I watched a mile long Buffet container train loaded with shit from China.  That which is wrong with this country is before our very eyes.  Without unfettered access to the American Market there would be no China. 

Sun, 07/24/2011 - 09:11 | 1486891 westboundnup
westboundnup's picture

It was just reported today locally that people who obtain work at an Amazon distribution center through a staffing agency are showing up to find out that they're not needed, and in some cases are being told that their positions have been filled.  In those states where online purchases are not taxed, Amazon has made it a point to announce new mass hirings.  I wonder if Amazon is now trying to reverse course without making it public.  

Sun, 07/24/2011 - 09:11 | 1486890 westboundnup
westboundnup's picture

It was just reported today locally that people who obtain work at an Amazon distribution center through a staffing agency are showing up to find out that they're not needed, and in some cases are being told that their positions have been filled.  In those states where online purchases are not taxed, Amazon has made it a point to announce new mass hirings.  I wonder if Amazon is now trying to reverse course without making it public.  

Sun, 07/24/2011 - 06:56 | 1486718 BandGap
BandGap's picture

I live in two worlds. The first world is one of sports camps and production schedules, shopping for food and going to the movies. The other is preparing for the worst, hoarding goods, saving silver, making sure there are enough things around so that me and my family can bridge the gap to pseudo normalcy should there be a massive social collapse and shift. It gets more bizarre every day, every event.  I would have thought that at this point of my life I would be planning for the cottage on the lake, the trip to Italy, the savings program for the grandkids. 

Sun, 07/24/2011 - 06:07 | 1486676 StychoKiller
StychoKiller's picture

Could be worse...

(AP) GARDEN GROVE, Calif. - Authorities said Tuesday that a woman is in custody after she drugged her estranged husband, tied him to a bed, cut off his penis with a large knife and threw it down a garbage disposal.

Sun, 07/24/2011 - 04:53 | 1486644 BlackholeDivestment
BlackholeDivestment's picture

This borderless criminal enterprise was based on the Great Wal Mart of China U.N, Agenda and Debt. There will be no overcoming it, it has overcome the world. Things are going to get worse very quickly. It will not take 10 years, we will be fortunate to reach 2016. It is amazing to see the strong delusion upon this generation, people here are still showing up to work, as the value of their labor is devoured because they did, instead of showing up in the streets of the Capitol or their State Capitol. The delusion defines the fact that people are still voting under the same corrupt two party rule that has placed a mark of debt upon labor, a debt which will only icrease to the final point of ''no return'', which we have now already reached. After tax a 100K is 50K and 50K in dollars in this market means city life at zero interest turns the cost of living higher each passing day. That has demand destruction written all over it, like a big black hole. The Black Swan Dive can happen at any time and it will real soon. There is no rainy day fund, there is only Chairsatan and the new Iranian Jets on deck. That is a sad fact. http://www.youtube.com/watch?v=6iMO7RivNpY&feature=related

Sun, 07/24/2011 - 14:49 | 1487885 Kayman
Kayman's picture

And who woulda thunk the USA would become Alfred E. Neuman...

Sun, 07/24/2011 - 03:57 | 1486599 frank888
frank888's picture

and ..to be more straight, all the huge spending through debt is just there to mask as long as possible the huge US unemployment and to keep the plebe quiet. After when it will be too late, Homeland security laws will apply against the new "terrorists"!

Peoples are dreaming about export..what do you want to export ?

Nearly everything can be made in China, so in THIS logic all the factories should be sent to China or Thailand to improve their margins ( and so destroying the jobs in the west ) THEN, sending the factories in china is also the way for the companies to grab a part of the chinese market.

Stop the globalization now !

Sun, 07/24/2011 - 03:44 | 1486584 frank888
frank888's picture

Globalization is very good for the western elites ( thats why they have decided to go ahead with it ! ), it was their ONLY way to have their capital growing... even if that was meaning destroy the jobs of their fellow citizens.

 

They need ALSO that the huge spending from the US federal government goes on because :

= give some sweeteners to the plebe is the way to keep it quiet as long as possible,

= to maintain military forces at top level to be able ( if necessary ) to defend their assets in the developing countries.

 

Peoples speak only about theories..capitalism is good for this or for that...

The reality is, as the CEO of Flextronic point out few years ago, there are NO reasons for his company ( or for others ) to hire engineers in the US because they can find the same in China for 30% cheaper !

and same for mostly of the other jobs...

Hopefully Wall Street was there to export to the world their Subprime !

 

Sun, 07/24/2011 - 03:50 | 1486590 AnAnonymous
AnAnonymous's picture

The reality is, as the CEO of Flextronic point out few years ago, there are NO reasons for his company ( or for others ) to hire engineers in the US because they can find the same in China for 30% cheaper !

China, Eastern Europe, India and Russia. And the ratio between US paid wages and those places is most of the times between 1:8 to 1:12 for these fields.

Sun, 07/24/2011 - 02:09 | 1486490 Tuffmug
Tuffmug's picture

Things would improve if our current Senators, Congressmen, and President are UNEMPLOYED or jailed for corruption and working in prison workshops for 25 cents an hour.

Sun, 07/24/2011 - 00:31 | 1486303 sasebo
sasebo's picture

Maybe when there's no groceries at the local grocery store & no gas at the local gas station somebody will figure out a way to take the panjandra out.

Sun, 07/24/2011 - 00:24 | 1486280 gwar5
gwar5's picture

Afraid it looks like more of the same plan to collapse the developed economies, ie USA, per UN Agenda21. Obama just signed exec order to begin rural implementation of Agenda21. Be on the look out in your area.

Sun, 07/24/2011 - 03:51 | 1486592 AnAnonymous
AnAnonymous's picture

There is no plan. Only the natural continuation of the trend the US has established.

Sat, 07/23/2011 - 21:37 | 1486024 steve from virginia
steve from virginia's picture

Unemployment will get a lot worse, particularly if the US defaults.

Default will eliminate the credit surge that began with TARP and just ended with QE2. The so-called 'recovery' was a Potemkin affair erected on a scaffold of (bad) US govt. and central bank loans.

Job creation has been anemic since before the Dot-Com bubble was blown. The only real output in the country has been 'infrastructure': suburbia and all that ties the different parts together. Suburbia is unproductive with +$35 crude oil so all the 'investment' suburbia represents is stranded. Who pays? Employees with good jobs, that's who.

Nothing new here, NAFTA and the opening of China allowed US business to escape bankruptcy by exporting jobs overseas. This (expedient) bought companies some time. Problem was that exporting jobs also exported business' customers.

Along with jobs flight was a large increase in consumer credit and easing of mortgage/home equity credit. Business -- not Barney Frank or environmentalits -- demanded large amounts of easily available consumer credit to replace wage-earners' lost purchasing power. This was another expedient that bought US businesses some time while creating a longer- term credit problem ... that the country is stuck with now.

Both expedients were simple energy hedges. Wages saved could be diverted to higher fuel costs. Increases in credit- fueled asset prices would allow 'instant rentiers' to afford fuel at any price.

Another issue not mentioned is automation. It and our incredible 'laziness' culture demands jobs where folks don't actually have to work. People want the marketing, internet, finance, legal, computer, administrative, 'human resource', sorts of things w/ offices, iPads, nice clothes, company car, big office building, etc.

A real need is for more organic farmers -- a million new farmers would be a big step toward solving two or three existential problems in this country. Farming isn't considered a 'modern' job.

It's modernity itself that is both finacially and intellectually bankrupt. There is no room in it for imagination and small tolerance for anything like 'anti-modern' approaches which have worked for thousands of years before cheap petroleum.

So ... no solutions only an unwind back to the Olduvai. Hope everyone enjoys the trip.

Sun, 07/24/2011 - 08:26 | 1486826 Sean7k
Sean7k's picture

Steve, I'm not sure how you associate default and unemployment as a direct effect. I understand the loss of funding and the subsequent loss of government jobs, but this would be beneficial, as those jobs are a tax, not real production. 

It would cut down on some expenditures, which would effect some industries, but again- this is funding from taxation. It is possible that the pressure to cut debt interest payments could be too large to ignore and in that case, the job losses would impact foreign and domestic banks- not a large job loss there.

Farming would be difficult, but lovely idea. Unfortunately, the large commercial farming paradigm has caused many farmers to incorporate larger and larger tracts of land- eliminating the smaller farms necessary for small farm food production. When I was looking, our local extension rep had been looking for 40 acres for YEARS and I live in a farming community. Further, it takes 3 years to cleanse a farm of commercial poisons and bring back the microfauna. A big investment. Don't get me wrong- it is worth every penny and people tell me I have a beautiful farm. 

As for modernity, we can still create a world that empowers our imaginations. Even if it is on a small plot of land. We can still create cohesive communities. There are products we can produce and sell. This we can control, for now.

As for the nutjobs in DC and the NY FED, well, the sooner they sink into the sea, the better. We assume their impact and power to be greater than it is. All States are subject to the will and approval of the people. While I prefer no State at all, we have the power to manage our futures. 

Sun, 07/24/2011 - 04:11 | 1486611 Bananamerican
Bananamerican's picture

wickedly succint...+

Sun, 07/24/2011 - 03:52 | 1486593 AnAnonymous
AnAnonymous's picture

Unemployment will get a lot worse, particularly if the US defaults.

Not many will admit it.

Sun, 07/24/2011 - 07:17 | 1486738 The Alarmist
The Alarmist's picture

Sure, keep contributing to the Big Lie ... Default is a choice, not an inevitability, should the debt ceiling not be raised in the next two weeks. Unemployment, on the other hand, is on it's own path independent of the level of government expenditure. If the prospect of increasing crowding out by govt borrow & spend were to continue, what would we spend when the last of the borrowing sources dries up? Same result, uglier fall off a higher cliff. Better to swallow the bitter pill now.

Sun, 07/24/2011 - 11:02 | 1487101 AnAnonymous
AnAnonymous's picture

Default is a choice, not an inevitability, should the debt ceiling not be raised in the next two weeks.

For people who take the debt issue for what it is and do not try to spin it through money/currency/financial offuscation, the debt has been defaulted on for now several decades.

The consumption brought from the future is unlikely to be replaced into the future as repayment on debt requires it.

All the currency offuscators might admit is that there is huge inflation coming ahead but they wont admit it has little to do with currency manipulation when it has all to do with consuming now resources on the ground we would be able to replace them in the future.

A real repayment on debt and thus avoiding a default event in real terms looks more and more an inevitability.

This also explains the second point you brought in. As there is no way out of this mess enabled and implemented by the US world order, it might be better to keep partying until we can not as, no matter what, due excessive consumption based on false presumptions, once the party is over, it will be over once for good. This might be the last party of all, so lets keep it last as long as it is possible. 

Sat, 07/23/2011 - 21:20 | 1485987 Sean7k
Sean7k's picture

A free market, capitalistic system is the best generator of jobs, income, profits and wealth. That being said, the United States has never had a free market, capitalist economic system.

The reason is government. Whether you want a government or not, the State produces an environment that works against jobs, income, profit and wealth. 

That environment includes: taxation, the FED and fractional reserve banking, fake regulation, the abuse of law for the benefit of a few, a whopping police state, huge public servicing demands, warfare, etc.

All these costs become part of the overall costs of products and services we wish to sell. Often resulting in companies closing doors or moving offshore. Law and regulation acts to protect state sponsored monopolies and cartels, further decreasing competitiveness.

Companies that are protected or given funding priority can grow to sizes that encourage the use of offshore labor or bring them in on special visas or protect their use of illegals.

University funding gets directed for corporate uses, resources get abused by corporate donors and subsidies are given to favored industries.

All these actions are made possible by government. Some would argue, we can vote and have a say in the process, but as the party machinery picks and funds the candidates, usually at the discretion of more powerful Elites, this ideal is laughable.

Nothing I have said here is new or unique. You all know it is true. Since government is the foundation of this neo-feudalism, it is not difficult to find the solution. It is the elimination of government or having it minimalized to a degree that insures it can never develop further. 

The best non-violent action that can be taken by Americans involves starving the beast of funds and ignoring its' every request or action. Black markets, refusing military service, elimination of debt and using debt instruments, educating the public, creating strong communities and the use of metallic money.

As long as government exists, slavery will follow.

Sun, 07/24/2011 - 09:09 | 1486881 Widowmaker
Widowmaker's picture

"As long as government exists slavery will follow."

Not quite, it's more of what government is composed of.  

In the US, it used to be that government was a collective, "for the people, by the people."

Now government is exclusive, "for the rich, by the rich, fuck the people, and record bonuses for failure as long as it all goes to the rich that bought the government"

No money, no representation, welcome to slavery.  Money is the new government in globalization.

Sun, 07/24/2011 - 11:21 | 1487169 AnAnonymous
AnAnonymous's picture

In the US, it used to be that government was a collective, "for the people, by the people."

Really? So how does it come that the US started as a slaver nation? Or maybe you are only concerned by 'slavery' when it threatens you...

Sun, 07/24/2011 - 03:59 | 1486601 AnAnonymous
AnAnonymous's picture

The reason is government. Whether you want a government or not, the State produces an environment that works against jobs, income, profit and wealth. 

That environment includes: taxation, the FED and fractional reserve banking, fake regulation, the abuse of law for the benefit of a few, a whopping police state, huge public servicing demands, warfare, etc.

No. Those are secondary factors. The primary factor is the amount of wealth accumulated within a given zone.

No government, no regulation and a zone that accumulates leads to outsourcing every activity whose valuation is no longer matched with the wealth of the environment.

Happens everywhere.

US citizens are self centered and like their propaganda. The fact is that (at the exclusion of China through an efficient statist policy), jobs are touring the world, as according to US economics design.

A location hosts temporarily an activity. As soon as the employees translate the benefits of their activity in bettering their environment (like investing in having running water), this new accumulation of wealth shows on the wage bills and then the activity is moved toward another location. No regulation, no government involved.

It is the result of Smithian economics that is characterized by transfering wealth to one location from other locations, forcing to look for the biggest imbalance each time to optimize transfer.

Sun, 07/24/2011 - 07:33 | 1486757 Sean7k
Sean7k's picture

Well perhaps you can explain how they are secondary factors. That is an assumption you are offering with no argument to legitimize it. One of the common denominators in your attempts to sow confusion. Second, perhaps you can supply an example since it "happens everywhere". 

You provide no support for your contention that jobs are touring the world. The Chinese are well known for exporting their workers to all the projects they are involved in. This would be in conflict with your exception for China. Suggesting you are merely making wild accusations.

Please provide proof that all improvements show on wage bills or atleast, a defense of this assumption or why it is important or has anything to do with your point.

Smithian economics is a theory. It is incapable of results unless practiced, in America, we are socialists. Yes, wealth will flow to better opportunities, but again, this has nothing to do with your original premise. 

If you are going to take the time to comment, you might try using english in the way it was originally envisioned- to communicate and create understanding. 

Sun, 07/24/2011 - 11:18 | 1487153 AnAnonymous
AnAnonymous's picture

Provide examples of what? That jobs are touring the world?

Provide examples of improvements showing up on a wage bill?

I could but I wont. Because they are obvious. US citizens are hooked on power and request from people that they show up evidences for obvious facts.

Denial that people who subscribe to a service will be charged for it and this charge is reported to the wage bill is huge.

Instead of demanding evidences of that, you should propose how it is false. The addition of the Internet network has not come for free and the subscription to an Internet service neither.

If you can provide something going into that direction, well, that would be something indeed.

 

As to China: Smitian economics create a demand for non residential workers. In areas where wealth is concentrated, jobs still need to be performed but their valuation does not allow people to live on those areas.

It can be dealt in two ways:

 - either the activity is outsourced to zones where the wealth is sparse, allowing people to live of the valuation of their work output

-or people are imported temporarily to perform the job and send back to places where the valuation of the job allows them to live.

The Chinese are only answering to a demand (both sides) that comes as the result of Smithian economics.

Sun, 07/24/2011 - 14:15 | 1487775 Sean7k
Sean7k's picture

Yes,some jobs are being outsourced, but touring the world? That has no meaning and thus, you need to give examples, otherwise- it is just bs. There are no figures and no justification. You won't show it, because you're intellectually lazy.

Pricing is not the cumulative addition of wages and production costs. This was proven by Mises in 1920. It is not denial- it is non-acceptance of historical and socialistic economic lies. So, give an example.

You are the one that challenged my comment, therefore, you are the one that is supposed to prove that it is false. That's how it works- unless you are intellectually lazy.

Smithian economics or what is similar to Classical Liberalism, has been used in a minor fashion at best (it died in 1932). Therefore, there is no support for using it to prove your point. Further, perhaps you could show where in Smithian economics this happens. If I'm going to trapse around fantasy land, I need a few landmarks.

Smith would have been confused by what a "non-residential" worker was. They didn't have any then. In fact, workers and artisans  lived quite close to the Lords of their time and performed services all the time. You must be referring to some other theory of economics.

China sends its' workers out on foreign projects to create employment for its' people. They demand this concession in return for making the investment. 

Perhaps you should read the Wealth of Nations, before you comment on it.

 

Mon, 07/25/2011 - 02:29 | 1489877 AnAnonymous
AnAnonymous's picture

That has no meaning and thus, you need to give examples, otherwise- it is just bs.

Huh, no. Lacking on the presentation on a phenomenum never prevented this phenomenum to happen.

As stated, while hooked on power, certain phenomena wont wait for the US citizens to okay them to happen. I have no evidences to provide. It is not a debate. I have nothing to establish. Besides, it also goes with what I wrote earlier: US citizens are so self absorbed they do not know the reality of outsourcing. Outsourcing in Smithian economics is constantly chasing for the lower labour cost and labour cost rises as soon as the environment of labourers is bettered. Regulation or not. Taxation or not.

Pricing is not the cumulative addition of wages and production costs? What does it mean? How is it linked with the current topic?

Until you can show that how pricing does not take into account wages, it has zero value. Because at the present moment, all it takes is the labour cost is priced in.

Smith might have been surprised. He is now dead. Do not want to make him speak.

But non residential workers did exist at his own times. Guild workers touring towns and cities, seasonal farm workers, much direct labour. Probably not for the same cause though but for a insufficient amount of activity.

The current trend has been developped over the time. It is quite insane to demand that by the times of Smith, the effects of Smithian economics should show before his economics vision was to be applied.

What investment does China make when they answer to a job bid?

And China is certainly not the only in this case. Lately, in Britain, offshoring work had to be done. The bid was secured by a European company which planned to satisfy the demand for the non residential labour by importing temporarily workers from Portugal and another country. The guys would have made the job and return to live in their own country. Same stuff here. Same reaction to the demand of non residential workers.

In this story, China is on the supply side. The demand side for non residential workers is mostly western countries.

Sat, 07/23/2011 - 23:22 | 1485942 Marley
Marley's picture

Well, my world went from Recession to Depression a couple weeks ago.  I'm under-employeed, and have been for 3 years, while my wife just got laid off in a RIF.   We're better off than several of our friends in the financial and technology sectors that haven't found acceptable work in the last 2 years.  While our neighborhood housing values haven't dropped below pre-peak, turn over is running 25%per year.  Parent participation at our local public school has decreased while after school care participation has exploded.  My wife's looking to partner in a social network startup, so please everyone, join a social network and keep clicking the ads.  Thanks, :)

Sun, 07/24/2011 - 10:32 | 1487049 dwdollar
dwdollar's picture

Social networking startups are a dime a dozen.

Sun, 07/24/2011 - 07:21 | 1486744 The Alarmist
The Alarmist's picture

"haven't found acceptable work ..."

And therein lies the sense of entitlement that will doom the USA.

Sun, 07/24/2011 - 08:09 | 1486799 Marley
Marley's picture

Agreed.  How any trust fund thirty something felt entitled to a lavash position, salary based on 12 years in college and zero life experience, first shooter scores (i.e., how many grandma and grandpa retirement accounts could be robbed), is beyond me.  After two decades of this non-reality, these deadbeats are still sucking off momma's tit and complaining when she wants them to find a job.  Luckily turning hamburgers is now considered a manufacturing job, as long as it is non-union, and the U.S. dream and economy will be saved.

Sat, 07/23/2011 - 20:53 | 1485918 Arch Duke Ferdinand
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