Nearly half the 14.6 million unemployed have been out of work for more than six months, a level not seen since the Depression.
As you are all-too aware, I am not an economist. But, I know this: One of the reasons corporate profits have risen in the face of high unemployment is because too many companies got too fat with too many people doing too little work and they realized they could get just as much done with far few people.
The Assistant to the Assistant's Assistant who got laid off earlier this year, ain't gettin' that job back. In fact, the Assistant to the Assistant ought to be polishing up the old resume because if consumers continue to limit their purchases to things they need, rather than things they want, then those corporate profits are going to shrink along with the inventories on box-store shelves and more layoffs will be coming.
Last night the Financial Times' analyzed what the Federal Reserve might do based on the unemployment report:
That followed news a week earlier that growth in US gross domestic product slowed from an annualized rate of 3.7 per cent in the first quarter to 2.4 per cent in the second quarter.
That means, according to the FT, the Fed is going to have to deal with "weak economic data and rising fears of a double-dip recession."
Rule A: If you have a job, you'd better do everything you can to keep it. Rule B: If you are looking for a job, you'd better plan on taking the first one that comes along and then see Rule A.
A double dip recession may well be bearing down upon us. If that happens it will not be the Democrats' problem nor the Republican's problem. It will be America's problem and we're going to have to start acting like grown-ups to find a solution.