One 77-year-old’s search for the truth: 9/11, election fraud, illegal wars, Wall Street criminality, a stolen nuke, the neocon wars, control of the U.S. government by global corporations, the unjustified assault on Social Security, media complicity, and the "Great Recession" about to become the second Great Depression. "The most important truths are hidden from us by the powerful few who strive to steal the American dream by keeping We the People in the dark."
Showing posts with label real unemployment. Show all posts
Showing posts with label real unemployment. Show all posts
Friday, March 19, 2010
THE AWFUL TRUTH - TOUGH WORDS FROM MICHAEL MOORE
The Green They Steal, The Greed They Wear
...a St. Patrick's Day lament by Michael Moore
Wednesday, March 17th, 2010
Friends,
It was amazing. Every story on the front page of Tuesday's New York Times told the story of the Age of Greed during which a system known as capitalism is slowly, but surely, killing us:
Insurance company greed: "Millions Spent to Sway Democrats on Health Care"
War profiteers: "Contractors Tied to Effort to Track and Kill Militants"
There's no profit in repairing our infrastructure: "Repair Costs Daunting as Water Lines Crumble"
China, the bank: "China Uses Rules on Global Trade to Its Advantage"
You mean NAFTA didn't improve life in Mexico: "Two Drug Slayings in Mexico Rock US Consulate"
What happens when Big Food profits from hurting kids: "Forget Goofing Around: Recess Has New Boss"
There's now a daily parade of news like this -- well, not really "news," more like the media division of large corporations shoving your face into the dirt that is your life. You already know the schools are a disaster and the war is a boon for the Halliburtons and a bust for you. You don't need a newspaper to tell you the roads and electrical lines and the local sewage plant is in miserable disrepair.
And by now you've figured out that you don't really have any say in this, that what we call the "democratic process" is mostly a sham, pretty words that get repeated in the hopes we will all still fall for it. But the fix is in and we don't fall for it anymore. Admit it: Wall Street owns "our" Congress lock, stock and big barrel o' campaign cash. You want a say in this? Well, I don't see you on the Forbes 400, so shut the f@*& up and go fetch me another bottle of bubbly.
Within days, the House of Representatives will vote to pass the Senate health care "reform" bill. This bill is a joke. It has NOTHING to do with "health care reform." It has EVERYTHING to do with lining the pockets of the health insurance industry. It forces, by law, every American who isn't old or destitute to buy health insurance if their boss doesn't provide it. What company wouldn't love the government forcing the public to buy that company's product?! Imagine a bill that ordered every citizen to buy the extended warranty on all their appliances? Imagine a law that made it illegal not to own an iPhone? Or how 'bout I get a law passed that makes it compulsory for every American to go see my next movie? Woo-hoo! Who wouldn't love a sweet set-up like this windfall?
Well, the insurance companies -- get this -- don't like the Democrats' bill! That alone should be reason enough to vote for it.
Now, you would think these thieves would love this bill -- but they are actually fighting it. Why? Because it doesn't give them ONE HUNDRED PERCENT of the what they want. It only gives them... 90%! YOU SEE, pure greed demands all or nothing.
The insurance industry hates this bill because it puts a few minor restrictions on them. Six months after its passage they won't be able to deny children coverage if they have a pre-existing condition. How awful! Government interference! SOCIALISM!
But, hey, they'll still be able to deny these children's parents coverage until 2014! So if a parent gets sick and dies in the next four years, I'm sure someone will step in and raise these already-insured orphans.
And how big will the fines be if the insurance companies do deny someone coverage for having a pre-existing condition? Are you sitting down? A hundred dollars a day! That's it! So if you're the insurance company, and Judy is a customer of yours, and Judy needs an operation that will cost $100,000, what do you do? You take the fine! Let's say Judy lives another year after you've sentenced her to death, your $100-a-day fine will only cost you $36,500! That's a savings of $63,500! And trust me, my friends, that's EXACTLY what's going to happen.
There are some good things in this bill. Parents will be able to keep their children on their policy until the kids turn 26. A few things like that. So, yes, pass that.
But don't insult me and 300 million Americans by calling this "health care reform." At least you've stopped calling it "universal health care." We will not have universal health care or anything close to it. I wish the president and the Democratic leadership would just stand up and say, "We're sorry, America. We didn't get the job done you sent us here to do. We're weak and scared and unable to communicate the simplest of messages to the American people. Therefore, our bill will guarantee that 12 million of you will still have NO health insurance. And that's because we have decided to leave the greedy, private insurance industry in charge of our system. Forgive us for this and for continuing to allow profit to be the determining factor as to whether a patient gets the help she or he needs."
Please, Democrats -- just say that -- then pass this poor excuse of a bill. Pass it because, if President Obama takes a fall on this one, I don't know if he'll be able to get back up. And then NOTHING will get done. We can't have that. (And thank you Dennis Kucinich for hanging in there right up to the end and being the only one out of the 435 members to speak the awful truth.)
On the front page of yesterday's New York Times, the dateline was, sadly, once again, "Flint, Michigan." The story was about how doctors are no longer accepting Medicaid patients. Which means tens of thousands of poor can no longer go to the doctor. Last year, the State of Michigan also prohibited doctors from accepting Medicaid patients who had anything wrong with their vision, their hearing, their feet or their teeth. In a 16-county area northwest of Flint, there will soon be not one single hospital that will allow you to give birth there if you're on Medicaid. The official unemployment rate in Flint is 27% (unofficially, closer to 40%).
This is an American tragedy. And, as I've warned you for years, this tsunami is heading your way -- if it's not there already.
I've just turned on my new iPhone and it informs me that it has "apps" it would like to suggest I buy. One is called "Scanner." It will allow me to listen in on police scanners anywhere across the country. I buy the app. I see that the Flint police scanner is part of this. I turn it on out of curiosity. And this is what I hear, at one in the morning: A woman is being beaten by her husband... A home invasion is taking place ("16-year-old black male, wearing a white skull cap")... A child has been missing since noon today... Another woman is being beaten by her boyfriend... A diabetic, obese man is having trouble breathing and needs to be rushed to the hospital (there will be three more of these obese diabetics in the hours to come; the entire town is ill)... One more woman calling, screaming for help, "officers urged to use caution..."
...And on and on and on. This is what I have listened to before going to bed. I am filled with despair and helplessness as I hear my former neighbors crying out for help. I hate it. I have to turn it off. I start to cry. Thank you, iPhone. Thank you, Democrats. I'll sleep better knowing that you're looking out for all of us.
Bastards.
Michael Moore
MMFlint@aol.com
MichaelMoore.com
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Saturday, March 13, 2010
Recovery? What Recovery?
The Sham Recovery
by Robert Reich, Robert Reich's Blog
12 March, 2010
by Robert Reich, Robert Reich's Blog
12 March, 2010
Are we finally in a recovery? Who’s “we,” kemosabe? Big global companies, Wall Street, and high-income Americans who hold their savings in financial instruments are clearly doing better. As to the rest of us – small businesses along Main Streets, and middle and lower-income Americans – forget it.
Business cheerleaders naturally want to emphasize the positive. They assume the economy runs on optimism and that if average consumers think the economy is getting better, they’ll empty their wallets more readily and – presto! – the economy will get better. The cheerleaders fail to understand that regardless of how people feel, they won’t spend if they don’t have the money.
The US economy grew at a 5.9 percent annual rate in the fourth quarter of 2009. That sounds good until you realize GDP figures are badly distorted by structural changes in the economy. For example, part of the increase is due to rising health care costs. When WellPoint ratchets up premiums, that enlarges the GDP. But you’d have to be out of your mind to consider this evidence of a recovery.
Part of the perceived growth in GDP is due to rising government expenditures. But this is smoke and mirrors. The stimulus is reaching its peak and will be smaller in months to come. And a bigger federal debt eventually has to be repaid.
So when you hear some economists say the current recovery is following the traditional path, don’t believe a word. The path itself is being used to construct the GDP data.
Look more closely and the only ones doing better are the people and private-sector institutions at the top. Many of America’s biggest companies are sitting on huge amounts of cash right now, but that says nothing about the health of the U.S. economy. Companies in the Standard&Poor 500 stock index had sales of $2.18 trillion in the fourth quarter, up from $2.02 trillion last year, and their earnings tripled. Why? Mainly because they’re global, and selling into fast-growing markets in places like India, China, and Brazil.
America’s biggest companies are also showing fat profits and productivity gains because they continue to slash payrolls and cut expenditures. Alcoa, for example, had $1.5 billion in cash at the end of last year, double what it had on hand at the end of 2008. Sounds terrific until you realize how it did it. By cutting 28,000 jobs – 32 percent of workforce – and slashed capital expenditures 43 percent.
Firms in S&P 500 are now holding a whopping $932 billion in cash and short-term investments. And they can borrow money cheaply. Corporate bond sales are brisk. So far in 2010, big U.S. corporations have issued $195.2 billion of debt, excluding government-guaranteed bonds. Does this spell a recovery? It all depends on what the big companies are doing with all this cash. In fact, they’re doing two things that don’t help at all.
First, they’re buying other companies. (Walgreen last month spent $618 million for New York drugstore chain Duane Reade; Bank of New York Mellon, $2.3 billion for PNC Financial Services; Monster, $225 million for jobs.com; Diamond Foods, $615 million for Kettle Foods.) This buying doesn’t create new jobs. One of the first things companies do when they buy other companies is fire lots of people who are considered “redundant.” That’s where the so-called merger efficiencies and synergies come from, after all.
The second thing big companies are doing with all their cash is buying back their own stock, in order to boost their share prices. There were 62 such share buy-backs in February, valued at $40.1 billion. We’re witnessing the biggest share buyback spree since Sept 2008. The major beneficiaries are current shareholders, including top executives, whose pay is linked to share prices. The buy-backs do absolutely nothing for most Americans.
(None of this, by the way, is stopping supply-side fanatics from arguing government needs to cut taxes on big corporations in order to spur the recovery. Their argument is absurd on its face. Big companies don’t know what to do with all their cash they have as it is. They aren’t investing it in new plant and equipment and new jobs. So why should the government cut their taxes and enlarge their cash hoards even more?)
The picture on Main Street is quite the opposite. Small businesses aren’t selling much because they have to rely on American – rather than foreign – consumers, and Americans still aren’t buying much.
Small businesses are also finding it difficult to get credit. In the credit survey conducted in February by the National Federation of Independent Businesses, only 34 percent of small businesses reported normal and adequate access to credit. Not incidentally, the NFIB’s “Small Business Optimism Index” fell 1.3 points last month, just about where it’s been since April.
That’s a problem for most Americans. Small businesses are where the jobs are. In fact, small businesses are responsible for almost all job growth in a typical recovery. So if small businesses are hurting, we’re not going to see much job growth any time soon.
The Federal Reserve reported Thursday that American consumers are shedding their debts like mad. Total US household debt, including mortgages and credit card balances, fell 1.7 percent last year – the first drop since the government began recording consumer debt in 1945. Much of the debt-shedding has been through default – consumers simply not repaying and walking away from homes and big-ticket purchases.
This is hardly good news. But here’s the Wall Street Journal’s take on it: “the defaults are leaving many people with more cash to spend and save, jump-starting the financial rehabilitiation” of the economy.
Baloney. As of end of 2009, debt averaged $43, 874 per American, or about 122 percent of annual disposable income. Most economic analysts think a sustainable debt load is around 100 percent of disposable income – assuming a normal level of employment and normal access to credit. But unemployment is still sky-high and it’s becoming harder for most people to get new mortgages and credit cards. And with housing prices still in the doldrums, they can’t refinane their homes or take out new loans on them. The days of homes as ATMs are over.
Some cheerleaders say rising stock prices make consumers feel wealthier and therefore readier to spend. But to the extent most Americans have any assets at all their net worth is mostly in their homes, and those homes are still worth less than they were in 2007. The “wealth effect” is relevant mainly to the richest 10 percent of Americans, most of whose net worth is in stocks and bonds. The top 10 percent accounted for about half of total national income in 2007. But they were only about 40 percent of total spending, and a sustainable recovery can’t be based on the top ten percent.
Add to all this the joblessness or fear of it that continues to haunt a large portion of the American population. Add in the trauma of what most of us have been through over the past year and a half. Consider also the extra need to save as tens of millions of boomers see retirement on the horizon. Bottom line: Thrifty consumers are doing the right and sensible thing by holding back from the malls. They saved a little over 4 percent of their disposable income in fourth quarter of 2009. In the months or years ahead they may save more.
Right and sensible for each household but a disaster for the economy as a whole. American consumers accounted for 70 percent of the total demand for goods and services in the American economy before the Great Recession, and a sizable chunk of world demand.
So what happens when the stimulus is over and the Fed begins to tighten again? Where will demand come from to get Main Street back, create jobs, raise middle class wages? Not from big businesses. Certainly not from Wall Street. Not from exports. Not from government.
So, where? That question is the big unknown hanging over the U.S. economy. Until there’s an answer, an economic “recovery” for anyone other than big corporations, Wall Street, and the wealthy is a mirage.
Business cheerleaders naturally want to emphasize the positive. They assume the economy runs on optimism and that if average consumers think the economy is getting better, they’ll empty their wallets more readily and – presto! – the economy will get better. The cheerleaders fail to understand that regardless of how people feel, they won’t spend if they don’t have the money.
The US economy grew at a 5.9 percent annual rate in the fourth quarter of 2009. That sounds good until you realize GDP figures are badly distorted by structural changes in the economy. For example, part of the increase is due to rising health care costs. When WellPoint ratchets up premiums, that enlarges the GDP. But you’d have to be out of your mind to consider this evidence of a recovery.
Part of the perceived growth in GDP is due to rising government expenditures. But this is smoke and mirrors. The stimulus is reaching its peak and will be smaller in months to come. And a bigger federal debt eventually has to be repaid.
So when you hear some economists say the current recovery is following the traditional path, don’t believe a word. The path itself is being used to construct the GDP data.
Look more closely and the only ones doing better are the people and private-sector institutions at the top. Many of America’s biggest companies are sitting on huge amounts of cash right now, but that says nothing about the health of the U.S. economy. Companies in the Standard&Poor 500 stock index had sales of $2.18 trillion in the fourth quarter, up from $2.02 trillion last year, and their earnings tripled. Why? Mainly because they’re global, and selling into fast-growing markets in places like India, China, and Brazil.
America’s biggest companies are also showing fat profits and productivity gains because they continue to slash payrolls and cut expenditures. Alcoa, for example, had $1.5 billion in cash at the end of last year, double what it had on hand at the end of 2008. Sounds terrific until you realize how it did it. By cutting 28,000 jobs – 32 percent of workforce – and slashed capital expenditures 43 percent.
Firms in S&P 500 are now holding a whopping $932 billion in cash and short-term investments. And they can borrow money cheaply. Corporate bond sales are brisk. So far in 2010, big U.S. corporations have issued $195.2 billion of debt, excluding government-guaranteed bonds. Does this spell a recovery? It all depends on what the big companies are doing with all this cash. In fact, they’re doing two things that don’t help at all.
First, they’re buying other companies. (Walgreen last month spent $618 million for New York drugstore chain Duane Reade; Bank of New York Mellon, $2.3 billion for PNC Financial Services; Monster, $225 million for jobs.com; Diamond Foods, $615 million for Kettle Foods.) This buying doesn’t create new jobs. One of the first things companies do when they buy other companies is fire lots of people who are considered “redundant.” That’s where the so-called merger efficiencies and synergies come from, after all.
The second thing big companies are doing with all their cash is buying back their own stock, in order to boost their share prices. There were 62 such share buy-backs in February, valued at $40.1 billion. We’re witnessing the biggest share buyback spree since Sept 2008. The major beneficiaries are current shareholders, including top executives, whose pay is linked to share prices. The buy-backs do absolutely nothing for most Americans.
(None of this, by the way, is stopping supply-side fanatics from arguing government needs to cut taxes on big corporations in order to spur the recovery. Their argument is absurd on its face. Big companies don’t know what to do with all their cash they have as it is. They aren’t investing it in new plant and equipment and new jobs. So why should the government cut their taxes and enlarge their cash hoards even more?)
The picture on Main Street is quite the opposite. Small businesses aren’t selling much because they have to rely on American – rather than foreign – consumers, and Americans still aren’t buying much.
Small businesses are also finding it difficult to get credit. In the credit survey conducted in February by the National Federation of Independent Businesses, only 34 percent of small businesses reported normal and adequate access to credit. Not incidentally, the NFIB’s “Small Business Optimism Index” fell 1.3 points last month, just about where it’s been since April.
That’s a problem for most Americans. Small businesses are where the jobs are. In fact, small businesses are responsible for almost all job growth in a typical recovery. So if small businesses are hurting, we’re not going to see much job growth any time soon.
The Federal Reserve reported Thursday that American consumers are shedding their debts like mad. Total US household debt, including mortgages and credit card balances, fell 1.7 percent last year – the first drop since the government began recording consumer debt in 1945. Much of the debt-shedding has been through default – consumers simply not repaying and walking away from homes and big-ticket purchases.
This is hardly good news. But here’s the Wall Street Journal’s take on it: “the defaults are leaving many people with more cash to spend and save, jump-starting the financial rehabilitiation” of the economy.
Baloney. As of end of 2009, debt averaged $43, 874 per American, or about 122 percent of annual disposable income. Most economic analysts think a sustainable debt load is around 100 percent of disposable income – assuming a normal level of employment and normal access to credit. But unemployment is still sky-high and it’s becoming harder for most people to get new mortgages and credit cards. And with housing prices still in the doldrums, they can’t refinane their homes or take out new loans on them. The days of homes as ATMs are over.
Some cheerleaders say rising stock prices make consumers feel wealthier and therefore readier to spend. But to the extent most Americans have any assets at all their net worth is mostly in their homes, and those homes are still worth less than they were in 2007. The “wealth effect” is relevant mainly to the richest 10 percent of Americans, most of whose net worth is in stocks and bonds. The top 10 percent accounted for about half of total national income in 2007. But they were only about 40 percent of total spending, and a sustainable recovery can’t be based on the top ten percent.
Add to all this the joblessness or fear of it that continues to haunt a large portion of the American population. Add in the trauma of what most of us have been through over the past year and a half. Consider also the extra need to save as tens of millions of boomers see retirement on the horizon. Bottom line: Thrifty consumers are doing the right and sensible thing by holding back from the malls. They saved a little over 4 percent of their disposable income in fourth quarter of 2009. In the months or years ahead they may save more.
Right and sensible for each household but a disaster for the economy as a whole. American consumers accounted for 70 percent of the total demand for goods and services in the American economy before the Great Recession, and a sizable chunk of world demand.
So what happens when the stimulus is over and the Fed begins to tighten again? Where will demand come from to get Main Street back, create jobs, raise middle class wages? Not from big businesses. Certainly not from Wall Street. Not from exports. Not from government.
So, where? That question is the big unknown hanging over the U.S. economy. Until there’s an answer, an economic “recovery” for anyone other than big corporations, Wall Street, and the wealthy is a mirage.
Robert Reich is Professor of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He has written twelve books, including "The Work of Nations," "Locked in the Cabinet," and his most recent book, "Supercapitalism." His "Marketplace" commentaries can be found on publicradio.com and iTunes.
Tuesday, March 09, 2010
Do Unemployment Benefits Keep People from Looking for Work?
From the Washington Monthly:
March 8, 2010
THE GOP STILL JUST DOESN'T LIKE THE UNEMPLOYED.... It's astounding, but in the midst of an unemployment crisis, prominent Republicans continue to castigate those struggling to find jobs.
Yesterday, for example, disgraced former Majority Leader Tom DeLay (R-Texas) argued that DeLay said, "there is an argument to be made that these extensions of these unemployment benefits keeps people from going and finding jobs." When CNN's Candy Crowley described his argument as "a hard sell" to the public, DeLay replied, "It's the truth."
Crowley followed up, asking, "People are unemployed because they want to be?" DeLay again said, "Well, it is the truth."
When it comes to Republicans condemning the unemployed, there seems to be something of a trend of late. Two weeks ago, Rep. Dean Heller (R) of Nevada expressed concern that the government is "creating hobos" by extending unemployment benefits. Around the same time, Rep. Steve King, a right-wing Republican from Iowa, explained his opposition to extended unemployment benefits: "We shouldn't turn the 'safety net' into a hammock."
Last week, Senate Minority Jon Kyl of Arizona, the Senate's #2 Republican, argued that unemployment benefits dissuade people from job-hunting "because people are being paid even though they're not working." And this, of course, coincided with Sen. Jim Bunning's (R-Ky.) crusade against extending benefits.
As a matter of economics, the GOP argument is absurd: "[W]hen the economy is deeply depressed, extending unemployment benefits not only helps those in need, it also reduces unemployment. That's because the economy's problem right now is lack of sufficient demand, and cash-strapped unemployed workers are likely to spend their benefits. In fact, the Congressional Budget Office says that aid to the unemployed is one of the most effective forms of economic stimulus, as measured by jobs created per dollar of outlay."
As a matter of conscience, having prominent Republicans chastise those struggling to find work during an unemployment crisis is just callous and cruel.
And as a matter of politics, who, exactly, is going to be impressed by Republicans attacking the unemployed as lazy? Since when is "screw struggling families, let's worry about corporate tax cuts and the estate tax" an effective election-year message during difficult economic times?
March 8, 2010
THE GOP STILL JUST DOESN'T LIKE THE UNEMPLOYED.... It's astounding, but in the midst of an unemployment crisis, prominent Republicans continue to castigate those struggling to find jobs.
Yesterday, for example, disgraced former Majority Leader Tom DeLay (R-Texas) argued that DeLay said, "there is an argument to be made that these extensions of these unemployment benefits keeps people from going and finding jobs." When CNN's Candy Crowley described his argument as "a hard sell" to the public, DeLay replied, "It's the truth."
Crowley followed up, asking, "People are unemployed because they want to be?" DeLay again said, "Well, it is the truth."
When it comes to Republicans condemning the unemployed, there seems to be something of a trend of late. Two weeks ago, Rep. Dean Heller (R) of Nevada expressed concern that the government is "creating hobos" by extending unemployment benefits. Around the same time, Rep. Steve King, a right-wing Republican from Iowa, explained his opposition to extended unemployment benefits: "We shouldn't turn the 'safety net' into a hammock."
Last week, Senate Minority Jon Kyl of Arizona, the Senate's #2 Republican, argued that unemployment benefits dissuade people from job-hunting "because people are being paid even though they're not working." And this, of course, coincided with Sen. Jim Bunning's (R-Ky.) crusade against extending benefits.
As a matter of economics, the GOP argument is absurd: "[W]hen the economy is deeply depressed, extending unemployment benefits not only helps those in need, it also reduces unemployment. That's because the economy's problem right now is lack of sufficient demand, and cash-strapped unemployed workers are likely to spend their benefits. In fact, the Congressional Budget Office says that aid to the unemployed is one of the most effective forms of economic stimulus, as measured by jobs created per dollar of outlay."
As a matter of conscience, having prominent Republicans chastise those struggling to find work during an unemployment crisis is just callous and cruel.
And as a matter of politics, who, exactly, is going to be impressed by Republicans attacking the unemployed as lazy? Since when is "screw struggling families, let's worry about corporate tax cuts and the estate tax" an effective election-year message during difficult economic times?
Apropos, in his recent blog, Paul Krugman found himself remembering a passage near the beginning of The Treasure of the Sierra Madre:
"Anyone who is willing to work and is serious about it will certainly find a job. Only you must not go to the man who tells you this, for he has no job to offer and doesn’t know anyone who knows of a vacancy. This is exactly the reason why he gives you such generous advice, out of brotherly love, and to demonstrate how little he knows the world."
And apropos of what it's like to be unemployed in the midst of a great depression, I highly recommend watching the 1940 Academy Award winning film starring Henry Fonda, John Steinback's "The Grapes of Wrath," which we recently found on DVD at Costco.
Sunday, February 28, 2010
NY Times: China's $600 Billion Stimulus Program -- with the Government as the "Single Payer" -- Created So Many Jobs that the Labor Pool Has Dried Up!
Employers sit with recruitment posters on a street in Guangzhou. China's coastal industrial heartland is facing a severe labor shortage as many migrant workers have not returned.Defying Global Slump, China Has Labor Crisis
Original article here
Published: February 26, 2010
GUANGZHOU, China — Just a year after laying off millions of factory workers, China is facing an increasingly acute labor shortage.
As American workers struggle with near double-digit unemployment, unskilled factory workers here in China’s industrial heartland are being offered signing bonuses.
Factory wages have risen as much as 20 percent in recent months.
Telemarketers are turning away potential customers because recruiters have fully booked them to cold-call people and offer them jobs.
Some manufacturers, already weeks behind schedule because they can’t find enough workers, are closing down production lines and considering raising prices. Such increases would most likely drive up the prices American consumers pay for all sorts of Chinese-made goods.
Rising wages could also lead to greater inflation in China. In the past, inflation has sown social unrest.
The immediate cause of the shortage is that millions of migrant workers who traveled home for the long lunar New Year earlier this month are not returning to the coast. Thanks to a half-trillion-dollar government stimulus program, jobs are being created in the interior.
But many economists say the recent global downturn also obscured a longer-term trend: China has drained its once vast reserves of unemployed workers in rural areas and is running out of fresh laborers for its factories.
Since China does not release reliable, timely statistics on employment, wages are considered the best barometer of labor shortages. And temp agencies here in Guangzhou raised their rate for factory workers this week to $1.17 an hour, from 95 cents an hour before the new year holiday.
The rate was 80 cents an hour two years ago, before the global financial crisis temporarily depressed wages and demand.
The dearth of returning migrants set off a desperate scramble this week to recruit the workers who did step off long-haul buses and trains returning from the interior.
At a government-run employment center in downtown Guangzhou, employers seeking workers outnumbered job-hunters Thursday afternoon.
Outside, Liang Huoqiao, a 22-year-old plastics worker, joined a small group of men and women studying a 40-foot-wide list of companies seeking workers.
“You can walk into any factory and get a job,” he said.
The official China Daily newspaper said on Thursday that surveys of employers showed that one in 12 migrant workers was not expected to return here to Guangdong Province. Cities farther north along China’s coast are also running low on labor; Wenzhou alone posted a shortage of up to one million workers.
Guangdong provincial officials announced on Wednesday that they were considering increasing the minimum wage, which varies by city and ranges from $113 to $146 a month.
Higher wages could ease labor shortages by prompting factories to reduce their work forces.
But many factories already pay well above the minimum wage. They are wary of further pay increases because it is not certain they can pass the increased costs on to their customers — in particular, strapped importers in the United States and the European Union.
Rising wages suggest the re-emergence of a worker shortage that was becoming evident before the financial crisis. A government survey three years ago of 2,749 villages in 17 provinces found that in 74 percent of them, there was no one left behind who was fit to go work in city factories — the labor pool was dry.
Mass layoffs in late 2008 and early 2009 because of the global financial crisis temporarily masked the developing shortage of industrial workers. But two powerful trends were still working to reduce the supply of young people headed for factories.
For one, the Chinese government has rapidly expanded postsecondary education. Universities and other institutions of higher learning enrolled 6.4 million new students last year, compared to 5.7 million in 2007 and just 2.2 million in 2000.
At the same time, China’s birth rate has been sliding steadily ever since the introduction of the “one child” policy in 1977.
Labor shortages have returned quickly in recent weeks as these long-term trends have collided with a recovery in overseas demand for Chinese goods.
Far more jobs are available these days in China’s interior. Government projects like rail and highway construction have absorbed millions of workers, particularly after Beijing allocated nearly $600 billion to economic stimulus spending in 2009 and 2010. Consumer spending is also rising briskly; auto sales more than doubled last month from a year before, and this has created many jobs in retailing, restaurants, hotels and other inland businesses.
Even before the holiday, companies were struggling to find the employees needed to keep assembly lines running.
At many factories, white-collar managers and engineers were forced to spend time on assembly lines to meet deadlines before the lunar New Year, because laborers were in such short supply. The managers often struggled with the tedious but intricate tasks required to make everything from toys to DVD players.
“People working in the office, like me, have been asked to help on the factory floor,” said Sky Niu, the sales manager at the Hengjia Electronics Company in Dongguan. “Of course, we can only help on the simpler tasks, such as packing.”
The labor shortage is not benefiting workers just through higher wages. Personnel managers here say they are also abandoning the informal tradition of not hiring anyone over 35 — they say they are now hiring workers up to 40 years old, and sometimes older, despite concerns about whether they can keep up week after week with the rapid pace of Chinese assembly lines.
It remains to be seen if Chinese factories will learn from their hiring difficulties now and be less quick to lay off workers during the next global downturn.
The current system “is not stable, it’s not healthy,” said Han Dongfang, the director of the China Labor Bulletin, a Hong Kong-based group that advocates collective bargaining.
Though the wage boost increases the prospect of inflation, it may have another more salutary aspect. The Obama administration has been pushing China to let the renminbi rise against the dollar, which would erode some of China’s formidable advantage in export markets. Rising wages in China have the same effect — while also giving Chinese families more spending power.
Letting wages rise benefits workers, said Jing Ulrich, the chairwoman of China equities and commodities at J. P. Morgan. Letting the currency rise benefits currency speculators, she said.
Mr. Liang, the 22-year-old plastics worker, said that he expected his pay to double in the next five years and added that he already had set his priorities.
“For sure, I want to buy a car,” he said. “Car first, then maybe marriage later.”
Hilda Wang contributed reporting.
A version of this article appeared in print on February 27, 2010, on page A1 of the New York edition.
Saturday, December 19, 2009
Health Care Reform DOA: Triumph of the Money Party
17 December, 2009 08:32:00 Michael Collins
There are many of us who have anywhere from serious to desperate need of health care reform. How surprised are you that the current effort is about to collapse under its own weight? There should be no surprise at all. We are going off to an undeclared war again, bankers reap profits while the real rate of unemployment is 17% at least, and there's no rush to restore the Constitutional rights stripped from us over the past years. It's The Money Party 24/7 as greedy and rapacious as they've ever been.
by Michael Collins
Dr. Howard Dean, MD, just said pull the plug on the current health care reform effort. The cure is worse than the disease, according to the good doctor.
Why the surprise?Last week the president announced that he's sending 30,000 troops to Afghanistan without a declaration of war by Congress and without Afghanistan posing a direct threat to the United States violating both the United States Constitution and international law at the same time.
The bailed out Wall Street failures are paying back just enough of their loans to the Treasury Department to allow a new round of huge bonuses. At the same time, they continue to get tons of cash through the Federal Reserve. Pay back a few billion; get 7 trillion dollars in credit. Not a bad deal.
Congress failed to pass a bill to help with foreclosures. We're at eight million so far since 2008 with another four million predicted for 2010. The beat goes on.
The Justice Department and Congress failed to seriously investigate massive mortgage fraud from the very top on down to loan officers during the real estate bubble.
The White House and Congress forgot to include a cap on credit card rates in its credit card bill of rights. How unfortunate since the credit card companies jacked rates way up shortly after the bill passed.
The official unemployment rate of 10 percent is far below the true unemployment rate of about 17 percent or higher. Why? Because it might upset us to know that we're at Great Depression levels of unemployment.
Poverty is rising at a rapid rate with no end in sight but you'd never know it for all the attention it gets. Let the markets take care of it.
The people who made the financial mess on Wall Street are now running the U.S. Treasury. The key players, Secretary of the Treasury Geithner and insider extraordinaire Larry Summers, were appointed right after the inauguration.
The constitutional rights stolen by the previous administration are still missing in action with no real effort underway to restore them. The Patriot Act is alive and well. The feds can still tap your phone and email. They can get at any of your financial data they want and it's all done in secret. But we still haven't had a real investigation of 911.
Congress is about to consider an international treaty of copyright that will turn anyone with a public blog or web site into a cop required to enforce the new laws or face prosecution.
Throughout it all, not one member of Congress or the financial elite will miss a meal, worry about their health care, lose their house, or ever face prosecution for destroying the economy of the United States.
Their Ponzi scheme is literally too big to fail. If there were ever the least bit of concentrated scrutiny on the various wars and financial rip offs over just the past decade, it would be the end of all of them.
Marginalize the poor, ethnic groups, immigrants, and anyone who protests the system. Kill the unions. Then intimidate those who have the courage to show up and protest with SWAT teams decked out for a serious beat down.
Take all you can from the middle class to support the big casino in banking and on Wall Street. Make husbands and wives work two jobs and be grateful for the opportunity. Provide children a lousy education that costs more every year while you talk about how much you love education.
Create false issues that pit one group against another -- race against race, class against class -- so that the great horror is never realized -- a unified public movement to demand freedom, dignity, and respect in our personal and public lives and a chance to earn a decent living in return for our hard work.
The Money Party has no ideals or goals other than to take as much as they can, at every turn, all the time and never let up.
Blame citizens for the fraud committed by the financiers.
Turn a blind eye as people lose their homes, savings, health care and jobs.
Blame humanity for pollution when it's just a few industries that create the filth that's threatening us daily.
Create side shows not worthy of a second rate carnival that you call politics and never mention that changes in administrations are really cosmetic and stylistic, not substantial. Meet the new boss, not exactly the same as the old boss, but close enough.
It's all good if you're at the top or on the take. The river keeps flowing, filthy as it is, in your direction with more and more based on the real work and the real economy of citizens who, despite all of this, strive to improve their lives and contribute to the larger good.
If things get too hot, you can just stage a big drama, get everybody upset, and make people feel grateful that they have the opportunity to be perpetual victims of the most rapacious, relentless, and callous scheme around to transfer wealth from the many to the very few.
It's only class war when we fight back and they're ready with their distracting dramas and debates on issues where the two sides are separated by just a few degrees of difference. Then demand bipartisan solutions where compromise is routinely used to break major campaign promises.
They don't care if we live or die although they do want us to be as productive as possible up to the end, as long as we don't expect to retire or enjoy the fruits of our labor.
We are nothing to them.
Michael Collins publishes Election Fraud News. His articles can also be found on Scoop Independent News, The Daily Censored and The Smirking Chimp, among others.
This article may be reproduced in whole or in part with attribution of authorship and a link to this article. http://www.fleshandstone.net/commentary/1713.html?print
Monday, November 23, 2009
Record US poverty, hunger. Real unemployment rate: 22%. "Leadership" ignores obvious solution
November 19, 11:09 AM
LA County Nonpartisan Examiner Carl Herman
LA County Nonpartisan Examiner Carl Herman
If a government has useful jobs to do and unemployed workers, the obvious solution is for the government to be the employer of last resort and create fiat currency to pay the workers. The added currency creates higher GDP, negating inflation. Problem solved.
Napoleon did it after ten years of chaos from the French Revolution. Germany did the same after their tragic-comic hyperinflation. In both cases, the two economies quickly became the most successful on the planet. Many of America’s brightest minds have argued for government-created currency, including Benjamin Franklin citing direct experience with the prosperity of the Pennsylvania colony with almost zero taxes. Government-created money can be used to directly pay for government goods and services rather than taxes.
But in America today, we have record poverty and hunger: 50 million Americans, 17 million households, one in every six Americans. We have a real unemployment rate of 22% when discouraged and part-time workers are added; close to the highest levels in American history. The so-called stimulus of job creation is symbolic. The numbers of new jobs claimed versus the number of unemployed make the odds of getting one of these jobs about as likely as getting into Harvard. And according to our government’s report on stimulus spending, $6.4 billion went to job recovery in “phantom” congressional districts that do not exist. Remember, this is the same government that regularly steals 25% of the Department of Defense budget that by their own admission becomes “unaccounted for.”
With crumbling US infrastructure, we could put the unemployed to work, but our political leaders tolerate poverty, hunger, homelessness, despair, and crime instead from political fear and feigned compassion, change and hope.
A Harvard study reports that 45,000 Americans die every year from unnecessary causes due to lack of health insurance. This, when Americans pay twice as much per capita for health care than all other developed countries and would save us money (and here). This too is a cruel hoax of leadership.
On our planet, we tolerate a million children dying every month from preventable poverty, when the investment to solve all related problems is less than one percent of US income. Ending poverty in every historical case reduces population growth rates, decreases crime and terrorism, and improves environmental quality. Our political “leaders” of both parties spend trillions on wars, but only fund our commitment in UN Summits to end poverty at about 20% of our promises. We spend trillions on US banksters, but won’t solve Americans’’ problems of poverty, hunger, unemployment, death from lack of basic health care, and do even less for the billion human beings living in poverty around our world.
The ONE campaign to make poverty history has an accurate and powerful slogan: We don’t want your money, we want your voice.
A starting place for Americans is recognizing that your leadership doesn’t represent your interests. We must discover a way for our will to be represented using our 1st Amendment right:
Congress shall make no law… abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
Following are 1-minute and 3-minute videos from One.org, then a 4-minute video reminding us who the people we save from poverty are.
As always, please share this article with all who claim civic competence. If you appreciate my work, please subscribe by clicking under the article title (it’s free). Please feel free to use my archive of work to help build a brighter future.
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