Another Installment of 'Scenes from a V-Shaped Recovery'

In honor of today's single-positive-data-point-driven-triple-digit rally, I thought it would be a perfect time for another installment of "Scenes from a V-Shaped Recovery":

"Financial Depression Spreads Among Seniors" (Blacklisted News)

President Obama has U.S. taxpayers paying billions to meet the costly payrolls of 50,000 troops and 190,000 contractors in Iraq while 20-million-plus jobless are looking for work in USA and can't find it.

Among the hardest hit now are more than 2-million people age 55 and over, half of whom have been looking for work for six months or longer. For them, the Great Recession is a no-fooling, deepening Depression.

Many of these seniors have no families to care for them. Others are too proud to ask their families, churches, or relief agencies to help them in their time of need. Even so, many a proud, independent, well-dressed senior is a soup kitchen regular because it's either that or go hungry.

Many seniors have been loyal to a corporation for much or all of their working lives only to discover the corporation has no loyalty to them. Instead, their employer laid them off before the retirement age and hired a younger, cheaper worker to replace them or just shipped their job to an office or plant on foreign soil. Many seniors are right to feel betrayed.

“The unemployment rate for this age group actually reached 7.1 percent in May, the highest it's been since the late 1940s,” writes A. Barry Rand, chief executive officer of the AARP in his September “Bulletin.” That's more than double the 2005 rate of 3 percent.

"New Job Means Lower Wages for Many" (The New York Times)

After being out of work for more than a year, Donna Ings, 47, finally landed a job in February as a home health aide with a company in Lexington, Mass., earning about $10 an hour.

Chelsea Nelson, 21, started two weeks ago as a waitress at a truck stop in Mountainburg, Ark., making around $7 or $8 an hour, depending on tips, ending a lengthy job search that took her young family to California and back.

Both are ostensibly economic success stories, people who were able to find work in a difficult labor market. Ms. Ings’s employer, Home Instead Senior Care, a company with franchises across the country, has been expanding assertively. Ms. Nelson’s restaurant, Silver Bridge Truck Stop, recently reopened and hired about 20 people last month in an area thirsty for jobs.

Both women, however, took large pay cuts from their old jobs — Ms. Ings worked for a wholesale tuxedo distributor, Ms. Nelson was a secretary. And both remain worried about how they will make ends meet in the long run.

With the country focused on job growth and with unemployment continuing to hover above 9 percent, comparatively little attention has been paid to the quality of the jobs being created and what that might say about the opportunities available to workers when the recession finally settles. There are reasons for concern, however, even in the early stages of a tentative recovery that now appears to be barely wheezing along.

For years, long before the recession began, job growth had become increasingly polarized in this country. High-paid occupations that require significant amounts of education and training grew rapidly alongside low-wage, service-type jobs that do not, according to David Autor, a labor economist at the Massachusetts Institute of Technology.

The growth of these low-wage jobs began in the 1980s, accelerated in the 1990s and began to really take off in the 2000s. Losing out in the shuffle, Dr. Autor said, were jobs that he described as “middle-skill, middle-wage” — entry-level white-collar positions, like office and administrative support work, and certain blue-collar jobs, like assembly line workers and machine operators.

The recession appears to have magnified that trend, Dr. Autor wrote in a recent paper, released jointly by the Center for American Progress, a left-leaning policy group, and the Hamilton Project, which has a more centrist reputation. From 2007 to 2009, the paper said, there was relatively little net change in total employment for both high-skill and low-skill occupations, while employment plummeted in so-called middle-skill occupations.

"The Fastest-Growing Group Among Local Homeless: Families" (Seattle Times)

On this chilly May evening in the parking lot of Southcenter mall, Cherie Moore is growing anxious. She and her 17-year-old son, Cody Barnes, sit almost unmoving in the cab of their old Ford Ranger, all their belongings crammed in the back -- their 32-inch flat-screen television, a prized movie collection, Cody's video games.

Moore is down to her last $6. It's nearing 10 o'clock and it's been hours since the two have had a meal.

Mall security has been circling. Moore knows they can't spend the night parked here, but the 49-year-old single mother, born and raised in South King County, has no clue where to go.

"I'm mentally exhausted," she says.

While overall homelessness in King County has steadied, it appears to be rising among families, a trend playing out across the nation.

Parents with children are the fastest-growing yet least-visible segment of the homeless population, far more likely to be doubled up in the homes of friends or living in their cars than to be at a busy intersection asking for help.

"Our Blue-Collar Great Depression" (Wall Street Journal)

Today's job losses are concentrated among workers under 30 who are less well-educated, with those in blue-collar industries suffering the most. Employment in construction, maintenance and repair, machine-operation and transportation (think truck and bus drivers) has shrunk 18% since the recession's start.

To put this number into context, consider this: During the Great Depression of 1929-33, total employment is estimated to have fallen by slightly more than the same figure, 18%. In short, the current Great Recession for younger blue-collar workers feels more like a depression—with no end in sight.

"‘An Equal-Opportunity Recession’" (The Jewish Week)

San Francisco — Robert M., 58, worked for a news organization in the San Francisco Bay area until September 2008, when he lost his job in layoffs that eliminated 15 percent of the company’s workforce nationwide.

Robert had eight months of savings. They ran out in six months.

After 14 months of unemployment, in December 2009 Robert turned to San Francisco’s Jewish Family and Children’s Services for help with rent, utilities and, hardest of all, food.

“It was gut wrenching,” said Robert, who asked that his last name not be used. “I’d contributed a lot to charities over the years, including JFCS. My wife and I gave to the food bank regularly. Now we were on the other side.”

It sounds apocryphal: Former donors to a Jewish charity reduced to seeking help from that very same organization. But as more and more Jews are caught up in the recession, now two years running, food banks across the United States are reporting the same phenomenon. Middle-class Jews, professional Jews, young people with families — they’re out of work, their savings are gone, and they are showing up for help at Jewish social service agencies.

With unemployment extensions about to run out for many, the problem is expected to worsen.

“In addition to the poor and the working poor, which we’ve always served, there’s been a substantial increase the past 18 months among the middle and upper-middle class who are not in a position to make it, yet are not poor enough to get benefits” from government, said William Rapfogel, CEO and executive director of the Metropolitan Council on Jewish Poverty in New York.

"POLL: Unemployment Affects Three Out Of Four Americans" (Huffington Post)

Nearly three out of four Americans have been directly affected by the recession, either because they have been unemployed or know someone who has lost their job, according to a new survey.

The report, prepared by Rutgers professors Carl Van Horn and Cliff Zukin, find that 73% of Americans have either been unemployed themselves (14%) or saw an immediate family member (12%), another member of their family (30%) or a close friend (17%) lose a job.

The survey also finds profound pessimism about where the economy is headed. More than half of Americans say they believe the downturn reflects a "lasting economic change" (56%) rather than a "temporary economic downturn" (43%). Large majorities believe that the economy will remain in recession or worse a year from now.

"After suffering through the worst economic disaster most have ever experienced," Van Horn said in a statement, "American workers have diminished expectations about America's economic future and do not have much faith that the nation's political leaders can move the country forward."

"Small Business Owners Fear Double Dip" (Boston Business Journal)

Most small business owners - 86 percent - fear that the economy is heading into a double dip recession, according to a recent small business survey by Citibank.

The survey revealed that three fourths of respondents felt they were at least somewhat prepared for this prospect. Over 60 percent of business owners say they have changed the way they run their business for good, regardless of what the economy throws at them next. Among the adjustments, business owners said they reduced debt, increased cash reserves, froze hiring and and delayed plans for expansion.

“Small businesses continue to feel the effects of today’s uncertain business environment,” Raj Seshadri, head of Small Business Banking at Citibank, said in a statement.

Given that virtually every bit of bad news these days is somehow seen as a sign that the worst is behind us, I reckon this list of horror stories is really going to get those stock jockeys' bullish juices flowing -- right?

Comments

[Tyler Elliott]

This posting is an excellent example of why "Financial Armageddon" is among the BEST and most honest blogs on the current depression

[Youngworker]

"Our Blue-Collar Great Depression" (Wall Street Journal)

WRONG THERE ARE YOUNG PEOPLE WITH BA'S, CERTIFICATIONS, AND MS'S OR MBA'S OUT OF WORK AND NO WHERE TO GO.

thanks for letting me whine.

[kevinearick]

The Exit Entrance Vortex

So, those who put their ego in their back pocket made a ton of money on the US/CAD, put it into the 30yrnoC, made more, and put it into oil, making more, while learning how the planetary fulcrum of fulcrum operates. Now, the dc bus proprietors, who expended all their energy getting control of oil, natural gas, wind, and solar, find that all the legacy energy systems are no longer viable. The bulldozer is pushing their minions off the bridge, and the abutments have moved, leaving the bosses stranded in History.

Do not fight the dc bus; it’s there for a reason. Put it to work, using its own energy. Move two steps ahead, install something like a NOR implementation of an AND gate, and the dc bus will follow, doing the only thing it knows how, implementing efficiency to mirror itself. At the microeconomic level of quantum adaptation, the exit is the entrance. Let the dc bus travel in concentric circles/coils, building up momentum, until you are ready to install the bridge with the parts prefabbed for the occasion, when the dc bus has fully loaded the spring, leaving it one and only one path of efficiency, across the gap.

When it has no choice, it will load the spring to completion, creating the false choice trigger, which will give you the necessary propulsion and trajectoryto jump the gap, into the next orbit. Once the circuit is complete, the dc bus will immediately paper over the bridge with mythology, while you take two steps forward.

The components are all there, waiting for the analog engineers to wire them together, which will only occur when they are paid to do so. Talent is a function of liberty, not force, and only talent across generations can hold the NPV window open. The dc bus liquidates itself every time, chasing its own tail. The turtle is in no hurry, because it carries the vortex.

A corporation is a corporation is a corporation. A family business is a family business. Government is in the business of feeding family businesses to the corporation, with the catalyst of greed, by short-circuiting the community, with the multinational on one side, and its owners on the other. The nature of the latest government incarnation is always misdirection.

So, there I am, in the library, and the guy makes a big scene saying the homeless riff-raff have egged his house. Only cigarettes are more valuable than eggs right now, because of the growing salmonella problem. (The hatcheries have also poisoned the natural salmon food chain.) They just cannot help themselves; bred behavior cannot be changed in real time..

What is going on at the State, Federal, and Global level is now irrelevant. The entire load is now on the back of the communities, which must be re-organized, and many of them have more than sufficient local resources to do so.

[roger]

the pharmaceutical,drug and assist-living
industry's are the only groups that find
value in seniors.

[Rocky]

To Youngworker: Have you thought of looking abroad for economic opportunities? If I were 40 years younger, that is what I would be doing. Unless you are a member of the First Nations, that is what your ancestors did, decades or centuries ago.

[Max]

Jobs like secretaries, file clerks, video store employees, are as obsolete as buggy whip mfg.
Wake up people- those jobs are GONE, and will never come back.

[Blurtman]

Things are fine in the Hamptons. Thanks for the bailout money, peasants!

[sharonsj]

As long as we have millionaires running Congress, you will not see real change. Some idealistic rep tried again to pass a bill to stop giving tax breaks to companies that outsource. It went nowhere. That's because Congress isn't going to bite the hand that feeds it.

If 75% of the country is angry and thinks we're going in the wrong direction, why haven't we seen more protests? And I don't mean the tea party or Glenn Beck. The tea party is either misguided or crazy and Beck is a huckster. Get off your duffs for the next election and make sure Congress gets the message.

[Robert Wainscott]

Greetings,

I grew up near Detroit. As a child I watched what happens when the factories up and moved away. I never saw a Help Wanted sign and a person had to have family connections to get a job at a McDonald's.

I moved to Texas when I was 18 because I heard that there were jobs there and there were jobs but they were pretty low paying. Texas didn't have Unions like we had in the North but, hey, a low paying job was better than nothing.

In my hometown of Toledo they will give you a home if you agree to mow the grass. That is how bad things have become. I always warned people that they, too, could look like Detroit, Toledo or Cleveland if they were not careful with how they voted or acted. Everyone thought I was crazy.

The young people I met thought they were entitled to clean high paying jobs and that manufacturing was beneath them. They would manage information in a nice office.

Guess what? It's all over now and all of you in these here United States is about to find out what it is like to live in Detroit. Get ready.