unemployment starts the double dip

[saveliberty]

Jobless claims rise to highest level in 9 months - Yahoo! Finance

Employers appear to be laying off workers again as the economic recovery weakens. The number of people applying for unemployment benefits reached the half-million mark last week for the first time since November.

It was the third straight week that first-time jobless claims rose. The upward trend suggests the private sector may report a net loss of jobs in August for the first time this year.

Initial claims rose by 12,000 last week to 500,000, the Labor Department said Thursday.

Homebuilders and other construction firms are laying off more workers as the housing sector slumps after the expiration of a popular homebuyers' tax credit. State and local governments are also cutting jobs to close large budget gaps.

In a healthy economy, jobless claims usually drop below 400,000. But the recent increases in claims provide further evidence that the economy has slowed and could slip back into a recession. Many analysts are worried that economic growth will ebb further in the second half of this year.

After growing at a 3.7 percent annual rate in the first quarter, the economy's growth slowed to 2.4 percent in the April-to-June period. Some economists forecast it will drop to as low as 1.5 percent in the second half of this year.

Commentary: The double dip is a direct result of the repairs attempted by the current adminstration.

 

[Annie]

It's been obvious to most for a long time, now some of the Keynesians are beginning to see or rename. Must say I'm glad I went to U of C, while many liberals in near all departments, they do make sure to keep some to balance:

Obvious Failure of Stimulus Becomes Obvious Even To Economists - Hit & Run : Reason Magazine

Obvious Failure of Stimulus Becomes Obvious Even To Economists

Tim Cavanaugh | August 18, 2010

Where do Keynesians go now that even public radio is talking about the failure of one of history's costliest Keynesian stimulus efforts?

At City Journal, Guy Sorman notes how quickly the managed-market winds have shifted. When the credit unwind started, the papers, the TV and the newsweaklies declared capitalism dead in just a little less time than it took for Kent Brockman to declare his loyalty to the Space Ants. Less than two years later, you can't buy good press for the stimulus; the economy is frozen solid in August; the nation is rediscovering -- despite the herniated efforts of local, state and federal government -- the virtues of thrift; and if you search for Keynes on the interwebs, all you turn up are headlines like "How Dr. Keynes killed the patient."

But here's the tell: We're already starting to see the first of the "Today's Keynesians are misreading Keynes" walk-back arguments.

As an idea, neo-Keynesianism is dead. (As public policy, of course, it will live forever.)

Sorman checks in with just-emerging-from-their-bunkers free market economists, including University of Chicago’s Eugene Fama and Columbia University’s Charles Calomiris – the latter of whom gives a nice list of all the ways that the supposedly unforeseen 2008 crisis fits into the pattern of “all banking crises that we have known about since the fifteenth century".

...

Links at site.

 

[uscitizen]

You think this is bad. Wait till after November when the Republicans try and cut spending.

 

[DiamondDave]

But but but but Obama is fixing things The Democratic congress is fixing things

 

[saveliberty]

Stocks drop as jobless claims rise unexpectedly - Yahoo! Finance

Headline: Stocks drop as jobless claims rise unexpectedly

Really? Unexpectedly? Just freaking REALLY?

Fire every last one of them that didn't see it coming. Worthless, just worthless.

 

[DiamondDave]

Every negative result in this administration is always labeled with the scapegoat of "unexpectedly"

 

[Mad Scientist]

But but but but Obama is fixing things The Democratic congress is fixing things

Many Libturds on this very board have said that unemployment is a "lagging indicator". I wonder what they think now?

 

[Lonestar_logic]

If something doesn't happen soon the Johnson Space Center here in Houston will have to lay off as many as one thousand people.

 

[Claudette]

Every negative result in this administration is always labeled with the scapegoat of "unexpectedly"

How could you forget??

ITS STILL ALL BUSH'S FAULT. LOL

 

[Avorysuds]

1: You are all racist and simply hate Obama - TM

2: Conservatives WANT things to get worse, and pray for it! - Jake

3: This PROVES Bush REALLY screwed things up - Someone unimportant

4: The economy was doing very well until the Republican congress filibustered it! -RW

5: Look, a rainbow awww.... =) - All the above

6: Wait a second, watching cnn.nbc.ABC.CBS.maddow.keith. for talking points… Then I need to listen to my daily rush.palin.beck.fox so I can debate you guys that don’t listen/watching them.

 

[saveliberty]

This is a critical time in our economy. A second round of the same fixes will lead us to an unheard of triple dip recession. My guess is it will be a depression, if it comes to that. Keyesian economics is a bust.

 

[Rozman]

If you thought the first Stimulus was a bust wait until Son of Stimulus,Stimulus II, and hold on to your hats....." I didn't cause this mess,yet you want me to clean it up,the GOP drove the car into a ditch and I'm the tow truck driver you called to pull it out".....STIMULUS PLAN.....

When are the Dems going to get it,this isn't working.They need the private sector to create jobs.Government creating jobs just doesn't work....

 

[Twofox]

In the early 20's there was an economic downturn caused by the same kinds of liberal economic policies. Removing those polices and allowing businesses to breath is what cause the roaring 20's.

 

[JakeStarkey]

The GOP has nothing to offer stop what is happening: an economic adjustment of the system.

That is what the Dems are going to campaign on: "You want to go back to the suckers who betrayed you?"

 

[Twofox]

The sad thing is, it's the lesser of two evils again. But we have to get the dems out so we can at least stop the bleeding. Next cycle hopefully we can start voting out all incumbents.

 

[Truthmatters]

In the early 20's there was an economic downturn caused by the same kinds of liberal economic policies. Removing those polices and allowing businesses to breath is what cause the roaring 20's.

Um asshole that was caused by the end of the war.


http://en.wikipedia.org/wiki/Depression_of_1920–21#Causes


Causes
Factors that economists have pointed to as potentially causing or contributing to the downturn include: troops returning from the war which created a surge in the civilian labor force, a decline in labor union strife, a shock in agricultural commodity prices,tighter monetary policy , expectations of deflation.[2]

[edit] End of World War I
Adjusting from war time to peace time was an enormous shock for the U.S. economy. Factories focused on war time production had to shut down or retool their production. A short Post-World War I recession occurred in the United States following Armistice Day, but this was followed by a growth spurt. The recession that occurred in 1920, however, was also effected by the adjustments following the end of the war, particularly the demobilization of soldiers. One of the biggest adjustments was the re-entry of soldiers into the civilian labor force. In 1918, the Armed Forces employed 2.9 million people. This fell to 1.5 million in 1919 and a mere 380,000 by 1920. The impact on the labor market was most striking in 1920, when the civilian labor force increased by 1.6 million people, or 4.1%, in a single year (though smaller than Post-World War II demobilization in 1946 and 1947, it is otherwise the largest documented one-year labor force increase).[2] In the early 1920s, both prices and wages changed more quickly than today, and thus employers may have been quicker to offer reduced wages to returning troops, hence lowering their production costs, and lowering their prices.[2]

 

[Truthmatters]

Lets see the rs can run on the line "We made the mess now we PROMISE to clean it up"

 

[SFC Ollie]

Can we say "we told you so" yet?

 

[theHawk]

The GOP has nothing to offer stop what is happening: an economic adjustment of the system.

That is what the Dems are going to campaign on: "You want to go back to the suckers who betrayed you?"

Good luck.

 

[JakeStarkey]

The GOP has nothing to offer stop what is happening: an economic adjustment of the system.

That is what the Dems are going to campaign on: "You want to go back to the suckers who betrayed you?"

Good luck.

The pubs need it, not me. I will vote for our local and regional GOP candidates because I had a hand in being involved in their running and helping with the campaigns. If you think the GOP is going to take either chamber, then good for you.