A ‘Jobless Recovery’ is a Deepening Recession By: Curtis Ophoven 10/2/2009 - 8 Comments The words ‘jobless’ and ‘recovery’ are at odds with each other.  New jobs are essential to an economic recovery.  Without new jobs, there is no recovery. Your Ad Here The only reason the word 'recovery' is being used by the cheerleading media and political partners in crime is because of all the money that is being spend from the government stimulus packages. But that money has to be repaid with interest and will result is much higher taxes for many years - further suppressing the economy for a long time. The money the government is spending is not helping create new jobs, but rather is delaying the small business sector from creating new jobs.  The failed inflationary policies of the Federal Reserve who led us into this recession are now suppressing our exit. Deepening Recession The economy lost 263,000 jobs in September — far more than expected — and the unemployment rate rose to 9.8 percent, the government reported on Friday. Despite help from Washington’s $787 billion stimulus, state and local governments slashed 47,000 jobs in September. More than 15 million people in the United States are now unemployed, as the economy has been bleeding jobs every month, without interruption, for nearly two years. There is not even a hint of recovery in this outlook.  We are facing a deepening recession. Let the Market Adjust By now it should be clear that throwing good money after bad is not the answer. We need to rebuild a new economy and that is going to take investments in new markets, based on new consumer demands.  To do that, we need to stop propping up the phony part of the economy that is not supported by real consumer demand.  In other words, the government has to let ‘too big to fail’ companies fail.  So that their capital and their resources can be freed up for new businesses to use based on real consumer demands. It’s also going to take much higher interest rates to attract investors and encourage savings so that the small business growth sector can get access to the loans they need to create new jobs. Perhaps the most important thing is for congress to take drastic action, but not the action that they have been taking.  They need to cut spending by 30-50 percent, cut taxes and remove policies that are suppressing businesses to make sure we are globally competitive again.  That is going to take new leadership, free market leadership.  We need to throw out the fat cats and bring in the fiscally conservative bean counters.   Subscribe via RSS Copyright © 2010 PennyJobs.com. All rights reserved. Related Articles Why Doing Nothing Would Have Been Better Than The $787 Billion Stimulus Package Everything Points To the Federal Reserve As The Cause Of the Economic Crisis 10 Reasons Why Sarah Palin May Have Led to a Real Economic Recovery Five Reasons Why the U.S. Government Benefits from Creating Inflation Here Is Why Inflation and Socialism Will Eventually Fail and Capitalism Will Regain Its Worthy Support << FREE >> Weekly Newsletter... Signup today and start receiving our free weekly newsletter! Reader Comments Comment 1 Mo Says: on Friday, October 02, 2009 10:05:38 PM The U.S. Is Outsourcing Away Its Competitive Edge by Gary P. Pisano "Today, many people are looking to high technology sectors — like alternative energy — to be the growth engine that revives the U.S. economy and gets it back on track. They're in for a shock. During the boom years, when all seemed well, capabilities that underpin innovation in a wide range of products were continuing to deteriorate. As my Harvard Business School colleague Willy Shih and I described in "Restoring American Competitiveness," a recent article in the Harvard Business Review, the U.S. has lost or is in the process of losing the ability to manufacture many of the cutting-edge products it invented. These include the batteries that power electric and hybrid cars, light-emitting diodes (LEDs) for the next generation of energy-efficient lighting, critical components of solar panels, advanced displays for mobile phones and new consumer electronics products like Amazon's Kindle e-reader, and many of the carbon fiber components for Boeing's new 787 Dreamliner. The culprit is the outsourcing of development and manufacturing work to specialists abroad. The result: a damaging deterioration in the collective capabilities that serve high tech. This industrial commons includes not just suppliers of advanced materials, production equipment, and components, but also R&D know-how, advanced process development and engineering skills, and manufacturing competencies. Making matters even worse is something that has been largely ignored: In addition to undermining the ability of the U.S. to manufacture high tech products, the erosion of the industrial commons has seriously damaged the country's ability to invent new ones. The prevailing view of the past 25 years has been that the U.S. can thrive as a center of innovation and leave the manufacturing of the products it invents and designs to others. Nothing could be further from the truth. This logic is predicated on utterly false assumptions about the divisibility of R&D and manufacturing and basic competitive dynamics." http://blogs.harvardbusiness.org/hbr/restoring-american-competitiveness/2009/10/the-us-is-outsourcing-away-its.html# Comment 2 steve Says: on Saturday, October 03, 2009 12:59:57 PM Peter Schiff: Gold Going To $5,000 http://moneynews.newsmax.com/streettalk/schiff_gold_inflation/2009/10/02/267707.html By: Julie Crawshaw Article Font Size Euro Pacific Capital head Peter Schiff predicts the Dow will fall another 90 percent from current levels when measured against gold, which he says will hit $5,000 an ounce. Schiff credits poor policy decisions over the past nine years for setting the U.S. dollar up to take a major fall against commodities and other currencies when China and Japan finally stop buying our debt. "Ben Bernanke is keeping his record of perfection intact of never getting anything right,” Schiff told Yahoo! Tech Ticker. “Once again he's gotten it wrong." "If the Fed really thought the economy was sound, why does he have it on life support? If he pulls the plug, our sick economy is going to die." "The reality is, that if we put interest rates anywhere near where they ought to be, we would bankrupt most of our financial entities and we’d have a real collapse,” Schiff says. “We’re never going to have a real recovery until the market lets us have a real recession.” “Our phony consumer-based economy isn’t viable; it only exists as long as the Chinese and Japanese lend us money to buy their stuff.” The dollar has suffered heavy selling against the other major currencies in recent weeks, with the yen and euro seeing strong gains, a condition some analysts see continuing. “The next couple of years is all about dollar weakness,” Stephen Green, senior economist at Global Research at Standard Chartered Bank told CNBC. “It’s all about Asia currency strength.” Comment 3 sally Says: on Saturday, October 03, 2009 1:04:30 PM Could food shortages bring down civilization? http://www.treehugger.com/files/2009/10/could-food-shortages-bring-down-civilization.php Agricultural colonialism. "The world is entering a new food era, one marked by rising food prices, growing numbers of hungry people, and an emerging politics of food scarcity. As grain-exporting countries restrict or even ban exports to keep domestic food prices from spiraling out of control, importing countries are losing confidence in the market's ability to supply their needs. In response, the more affluent ones such as Saudi Arabia, China, and South Korea are leasing and buying large tracts of land in developing countries on which to grow food for themselves." Comment 4 Lawrence Says: on Saturday, October 03, 2009 3:28:55 PM I think it's important that we not throw good money after bad money. I realize that is a bit vague but it is the thought that keeps ringing in my head the further we move through this recession. Comment 5 just a guy Says: on Sunday, October 04, 2009 4:18:10 PM No wonder more people are haivng to clip coupons online. "While some frugal shoppers are still clipping coupons, more of them are surfing the Internet to find the best bargains these days. Increasing numbers are turning to Web sites that provide rebates, special discounts and coupons that can be printed or sent straight to a mobile device. "We're moving toward this trend of everything being online, couponing included," said Mike Kraus, a retail analyst for AllBusiness.com. Some Web sites, such as RetailMeNot.com and Promotions.com, aggregate discounts offered by other Web sites. Microsoft's search engine, Bing, also enables shoppers to search for the best cash-back deals for a specific product on various sites. Other sites, such as CellFire.com and ZaveNetworks.com, enable users to access coupons straight from a mobile device, no computer needed. All these shoppers have to do is show the code on their phone at checkout. Shoppers also can troll sites such as 8coupons.com to text-message discounts to their phones or to their friends. Sites such as GetYowza.com and CouponSherpa.com offer downloadable iPhone applications through which shoppers can search and download discounts to their phones." http://washingtontimes.com/news/2009/sep/27/shoppers-cash-in-on-e-coupons-web-sites-offer-reba/?feat=home_headlines# Comment 6 not so slick willie Says: on Sunday, October 04, 2009 4:22:09 PM The case for inflation -- and gold "Top investors in precious metals are waiting for a pullback to buy, but they say gold looks like a promising inflation hedge well into the future. China is hungry for it, too." By Bill Fleckenstein http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/the-case-for-inflation-and-gold.aspx Comment 7 Rachel Davis Says: on Monday, October 05, 2009 5:57:53 AM Hello, I am Rachel Davis, Affiliate Manager of debtconsolidationcare.com, world’s largest debt free community. I came across to your site and I must say that you have got an amazing site. I would be glad if you join our affiliate program because your site has full potential to send traffic to my website. We are registered with BBB with current rating as A- providing no obligation debt consolidation, settlement and counseling services The highlights of our program are: 1. Absolutely FREE registration. 2. You put up a banner or text link or lead sign up form on your site/blog and send traffic from your site/blog to our website. You can also promote via means of email marketing, PPC, telemarketing, etc 3. We will pay you $25 for each registration. (Affiliates are earning up to $1500 per week with our program) Please note that we try to contact the leads 7 times before marking it a dead lead. So what are you waiting for? Join DebtCC Affiliate Program Today and earn dollars!! http://www.debtconsolidationcare.com/affiliate/For more questions please visit http://www.debtconsolidationcare.com/affiliate/faqs.html This Program will definitely help both of us mutually. You send your potential visitors to our site and we pay you for this. Please note that for doing email marketing you need to approve the email from us as we do not want any kind of spam activities to take place. Thanks, Rachel Davis Affiliate Manager http://www.debtconsolidationcare.com/ Write a Comment Please keep comments civil and on-topic. Abusive or inappropriate comments will be removed without warning.  Name (required)     Email Address (required)     Website URL  Comment

Related Articles Why Doing Nothing Would Have Been Better Than The $787 Billion Stimulus Package By now it's pretty clear that the "doing something is better than doing nothing" mantra of government intervention was and still is a lie. Read More... Everything Points To the Federal Reserve As The Cause Of the Economic Crisis Every day I seem to read someone else that has made the connection that the Federal Reserve is the source of the global economic crisis. Read More... 10 Reasons Why Sarah Palin May Have Led to a Real Economic Recovery Since the 2008 presidential elections, Sarah Palin has become the single most influential and leading candidate for the GOP. Read More... Five Reasons Why the U.S. Government Benefits from Creating Inflation There are so many benefits for governments to create inflation, that the temptation to inflate is very difficult to resist as history shows that many governments have chosen inflation. Read More... Here Is Why Inflation and Socialism Will Eventually Fail and Capitalism Will Regain Its Worthy Support Contrary to the current popular opinion in the leadership today, inflation and socialism do not help the poor or the middle class or anyone else for that matter. Read More... Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse In discussions of today's economic meltdown and what to do about it, the Federal Reserve is a stealth helicopter: it never shows up on the radar. With the exception of a few esoteric specialists and those Ron Paul Revolutionaries who burst into chants of "Abolish the Fed!" Historian Thomas Woods notes in this important book, the Federal Reserve bears a large part of the blame for the mess we're in. In the first part of "Meltdown," Woods shows how both in theory and in practice, Fed policy fueled an artificial boom and is now leading us to a much larger meltdown. U.S. Manufacturing: The Engine for Growth in a Global Economy This volume provides a comprehensive analysis of the essential role of the manufacturing sector of the US economy. The increase in the relative importance of the service sector and the globalization of manufacturing has tended to dull the image of US manufacturing....This volume contains much useful data that has been condensed into tables and charts to provide support to the reader without interrupting the flow of the text. Crash Proof Peter Schiff has predicted the economic hardship more accurately then any other economist in the world in this book. Everything from the housing crash to the credit crunch to the stock market. Peter has a plan to help you servive the crash. Peter explains why the Wall Street investment firms are still trying to sell you stocks, and was the house prices are likely to continue to decline for years to come. Working From Home This is the altimate guide for how to start a home business. Full of ideas and tips. Working from home increases productivity by 15 to 20 percent. What better way to complete in the global economy. One great idea is to build a network of small home businesses with whom to trade services with.