The Great Recession

Discussion in 'Economy' started by Peach, Jun 11, 2012.

  1. Peach
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    Peach Gold Member

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  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Kids takin' it on the chin in this jobless recession...
    :eusa_eh:
    More than 7 in 10 US teens jobless in summer
    Wed, Jun. 13, 2012, WASHINGTON - Once a rite of passage to adulthood, summer jobs for teens are disappearing.
     
  3. Widdekind
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    Widdekind Member

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    "Part I" of the article clearly demonstrates the relation, between production (GDP), and employment -- since, ultimately, workers make (and manage the making of) everything. When employment falls (unemployment rises), production falls too. (Macroeconomists call that Okun's Law.)

    Now, employment falls, when workers are fired (and not hired). That tends to happen, when corporations are forced to pay more taxes -- more often than not, rising corporate taxes coincide with rising unemployment (falling employment, and hence production). Thus, corporate taxes tend to "crowd out" the hiring & paying of workers. Again, economically, workers must compete, against corporate tax dollars, for their wages. So, taxing the businesses upon whom you depend for your own earnings is bad economics (and if ever advised, is bad advice):
    [​IMG]
     
  4. California Girl
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    California Girl BANNED

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    Certainly it started in 2007. However, to establish what led to the recession - the policies, the lack of oversight, the root causes (because there were certainly more than one), we have to go back much further. Back as far as Clinton.... and the bi-partisan fuck ups from that and every Administration since.
     
  5. expat_panama
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    expat_panama Silver Member

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    Actually, people use any starting point that's useful. Politics, doctrine and partyline dogma are all well and good for the hack set, but in business we need to see things as they are. The article highlights the fact that current trends have kids out of work--
    [​IMG]
    --and philly.com isn't the only site showing it, here's what IBD was looking at a few weeks ago:
    [​IMG]
    The point is that since the end of 2008 millions of people became unemployed.
    [​IMG]
    Loony leftist say it's because babyboomers retired. It's not true, the old have kept their jobs and the young are the ones out of work.
     
    Last edited: Jun 17, 2012
  6. Peach
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    Peach Gold Member

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    The cost of TWO wars, and tax cuts that went out of the US do not factor into your equation?
     
  7. Widdekind
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    Widdekind Member

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    generally, teenagers earn minimum wage. For every 10% decrease in MW, 10-30% more teens get jobs. So, reducing the MW could put teens back to work.
     
  8. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Of course. You do realize those wars and the tax cuts were bi-partisan, do you not?
     
  9. Moonglow
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    Moonglow Diamond Member

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    in my area alone I know of dozens of jobs for teens, they don't want them or they would apply and get them. Unlike when I grew up you had a job, at the house, then you could mow lawns for money, I picked pecans and pop bottles. This I got to make money at, but the chores around the house I was paid a 5 buck allowence, not bad for the '60's. When I was an older teen I worked at rest. and construction. I ran into kid that said he was looking for work for two years. I told him to show up and I would work him, he was a no show.
     
  10. expat_panama
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    expat_panama Silver Member

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    That's an excellent point.

    Usually MW laws tend to fade away with inflation and the harm is short lived. These days we got deflation and that means a constantly increasing minimum wage in real terms causing more and more unemployment.
     

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