FacebookTwitterGoogle+RedditEmail

Jobs Crisis Denial

by SHAMUS COOKE

Before any problem can be fixed it must first be acknowledged. The jobs crisis stays in the shadows, out of mind, and consequently unaddressed. This is allowed to happen because those in power – Republicans and Democrats – both have political reasons to remain silent.

When the jobs crisis is discussed, the word “crisis” is seldom used, and the conversation is conducted with hushed tones and minimizing vocabulary. Therefore, when the monthly national jobs report was announced for June, there was quiet grumbling instead of passionate oratory; passivity instead of mobilization and action.

In the last three months the country added an average of 75,000 jobs a month. But job creation per month must be over 100,000 to keep up with young workers entering the workforce; therefore the real number of unemployed has steadily increased, on top of the mountain of already long-term unemployed.

The “real” unemployment rate – which includes those who gave up looking for work and those who want full-time work – rose to 14.9 percent in June, a total of 23 million people.

President Obama actually had the nerve to claim that the June jobs report was a “step in the right direction.” His election campaign chooses not to be interrupted by facts.

But the real story that the numbers tell in the jobs report is the trend that promises more unemployment. The economy has stalled, and threatens to slide backward again into recession. The “jobless recovery” that we have now is likely to evolve into a full-fledged depression.

Corporations already know this, which is why they refuse to hire more workers and are content sitting on their mountains of cash: why invest money in hiring or adding new machines if you think the economy may tank, spoiling the investment? Indeed, corporations have every right to believe the economy is headed downward. The New York Times explains:

“… ill [economic] winds are blowing in from both a contracting [recessionary] Europe [the biggest trading partner of the U.S.] and slowing growth in emerging markets [China, India]. Also, domestic lawmakers’ inaction on the upcoming ‘fiscal cliff’ creates uncertainty that is not conducive to hiring.”

What is this “fiscal cliff” that politicians and CEO’s talk about behind closed doors but rarely discuss on TV?  The New York Times continues:

“…the end of 2012 [the fiscal cliff] will also bring a torrent of federal tax increases [reducing consumer spending]… The government is also scheduled to lop off a huge chunk of federal spending [$500 billion in annual cuts] because of measures set in motion [the infamous “trigger cuts”] by Congress’s inability last December to come up with plans for longer-term fiscal restructuring.”

The reason these cuts are not being discussed – and the reason they are referred to as the “fiscal cliff” – is because after these measures are implemented, the already-stammering economy will be pushed “over the cliff” into recession.

Both parties are not talking about the fiscal cliff because they share the exact same solution: austerity -cuts to social programs (education, health care, safety net), government layoffs, and other measures to make working people pay for the nation’s debt instead of the rich and corporations.

The real state of the economy is also revealed by Wall Street’s clamoring for the Federal Reserve to again start printing massive amounts of money, called quantitative easing. This desperate move would never be considered in times of “relative stability” of the economy and threatens to create massive inflation at home and abroad.

Both Democrats and Republicans are aligned with the free market model of job creation, which amounts to massive state intervention to provide banks and corporations with bailouts, ultra-cheap/printed money, subsides, tax breaks, etc., in the hopes that these corporations will hire people. These ideas have already been thoroughly disproved by events, yet nobody in power can put forth an alternative, since doing so would change the landscape of American politics.

What America needs is what was done during the last depression: a massive dose of state intervention against these corporations and the wealthy, by demanding that their taxes be dramatically increased to fund a federal jobs program.

Until labor and community groups detach themselves from Obama’s election campaign, they will remain mum on this issue and will be forced to support a so-called corporate jobs creation plan that promises more unemployment. The reason that labor organizations are not fighting for a real jobs campaign is because they have opted to tape their mouths shut and campaign for the Democrats instead, a fact that exposes them in front of their membership, who will in turn demand a new policy from their leaders. If the leaders fail to respond positively, their membership will demand a new policy and a new leadership.

Shamus Cooke is a social service worker and trade unionist. He can reached at shamuscooke@gmail.com 

Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org). He can be reached at shamuscooke@gmail.com

More articles by:
Weekend Edition
May 27, 2016
Friday - Sunday
John Pilger
Silencing America as It Prepares for War
Rob Urie
By the Numbers: Hillary Clinton and Donald Trump are Fringe Candidates
Andrew Levine
Hillary’s Gun Gambit
Paul Street
Feel the Hate
Daniel Raventós - Julie Wark
Basic Income Gathers Steam Across Europe
Gunnar Westberg
Close Calls: We Were Much Closer to Nuclear Annihilation Than We Ever Knew
Jeffrey St. Clair
Hand Jobs: Heidegger, Hitler and Trump
S. Brian Willson
Remembering All the Deaths From All of Our Wars
Dave Lindorff
With Clinton’s Nixonian Email Scandal Deepening, Sanders Must Demand Answers
Pete Dolack
Millions for the Boss, Cuts for You!
Peter Lee
To Hell and Back: Hiroshima and Nagasaki
Karl Grossman
Long Island as a Nuclear Park
Binoy Kampmark
Sweden’s Assange Problem: The District Court Ruling
Robert Fisk
Why the US Dropped Its Demand That Assad Must Go
Martha Rosenberg – Ronnie Cummins
Bayer and Monsanto: a Marriage Made in Hell
Brian Cloughley
Pivoting to War
Stavros Mavroudeas
Blatant Hypocrisy: the Latest Late-Night Bailout of Greece
Arun Gupta
A War of All Against All
Dan Kovalik
NPR, Yemen & the Downplaying of U.S. War Crimes
Randy Blazak
Thugs, Bullies, and Donald J. Trump: The Perils of Wounded Masculinity
Murray Dobbin
Are We Witnessing the Beginning of the End of Globalization?
Daniel Falcone
Urban Injustice: How Ghettos Happen, an Interview with David Hilfiker
Gloria Jimenez
In Honduras, USAID Was in Bed with Berta Cáceres’ Accused Killers
Kent Paterson
The Old Braceros Fight On
Lawrence Reichard
The Seemingly Endless Indignities of Air Travel: Report from the Losing Side of Class Warfare
Peter Berllios
Bernie and Utopia
Stan Cox – Paul Cox
Indonesia’s Unnatural Mud Disaster Turns Ten
Linda Pentz Gunter
Obama in Hiroshima: Time to Say “Sorry” and “Ban the Bomb”
George Souvlis
How the West Came to Rule: an Interview with Alexander Anievas
Julian Vigo
The Government and Your i-Phone: the Latest Threat to Privacy
Stratos Ramoglou
Why the Greek Economic Crisis Won’t be Ending Anytime Soon
David Price
The 2016 Tour of California: Notes on a Big Pharma Bike Race
Dmitry Mickiewicz
Barbarous Deforestation in Western Ukraine
Rev. William Alberts
The United Methodist Church Up to Its Old Trick: Kicking the Can of Real Inclusion Down the Road
Patrick Bond
Imperialism’s Junior Partners
Mark Hand
The Trouble with Fracking Fiction
Priti Gulati Cox
Broken Green: Two Years of Modi
Marc Levy
Sitrep: Hometown Unwelcomes Vietnam Vets
Lorenzo Raymond
Why Nonviolent Civil Resistance Doesn’t Work (Unless You Have Lots of Bombs)
Ed Kemmick
New Book Full of Amazing Montana Women
Michael Dickinson
Bye Bye Legal High in Backwards Britain
Missy Comley Beattie
Wanted: Daddy or Mommy in Chief
Ed Meek
The Republic of Fear
Charles R. Larson
Russian Women, Then and Now
David Yearsley
Elgar’s Hegemony: the Pomp of Empire
FacebookTwitterGoogle+RedditEmail