I’ll let the mainstream media continue to try to describe our economic recovery that the politicians are raging about, while I focus on the depression that is at hand.
"Millions of Unemployed Face Years Without Jobs," says The New York Times.
You may wonder what kind of an economic expansion we have with rising GDP and low inflation, yet a failure to produce jobs. The answer is a depression.
The primary reason that the public doesn’t realize that we are in a depression is because the last time we had a depression we has people standing in lines to get a bowl of soup or selling things on the street corner.
“In the '30s, there was no public safety net. No unemployment compensation...no severance packages...and no government welfare. People didn't give up looking for a job; they had no alternative. They kept looking until they found something. Either you were working...or you were jobless. If we reported the numbers the same way they did in the '30s...the number would already be up near Great Depression levels...at about 15% to 18% joblessness.”
This depression is just as real as the depression we faced in the 30’s.
Perhaps the worst part about a depression is that they take a long period of adjustment, unlike a recession that is usually less than a year.
The longevity of a depression is going to turn job hunting into career transformation, as old jobs never come back and new skills are needed to transition into new jobs.
This doesn’t happen overnight, no matter how much money the Fed pours into the economy.
In fact government money just prolongs the transition and distorts consumer demands causing failing businesses to remain in operation much longer than they should.
Men Hit Hard By the Depression
“For men...this is clearly a Depression...no, it's worse. Not only are they unemployed. They're going to stay unemployed for a long time. Because it takes times for a depression to do its work. And when it is over - maybe five or ten years...or 20 years ahead - not only won't they find their old jobs again...they may never work again. And they won't have wives or families either.”
Jobs in information and services that employ more women than men are doing much better than construction and manufacturing that typically employ a higher percent of men.
This is not good for men. If you are a young man, it will be difficult to get married without a good job and if you’re the sole breadwinner for your family you will be under a lot of stress to get back to work.
Perhaps the good position to be in right now is to be already married to a woman with a high paying job. (Like my neighbor who is a union electrician and has been laid off for two years. He goes fishing everyday when I go to work.) Of course if your financial contribution is very important to your wife, you could end up out on the street.
The dollar is eventually going to sink because of the trillions that the Fed has printed and has been adding to the market for the last decades. But, before that happens the dollar could strengthen as the rest of the world looks to be going through its own debt problems.
The sinking dollar will cause exports to increase and that will trigger growth in manufacturing and transportation, which will provide many jobs for men.
So in a strange way, the more the government inflates the dollar the faster the dollar will sink and the sooner men can find new jobs.
Another way for this to happen, is if China un-pegs their currency to the dollar, which our nation has been trying to get them to do for many years. This will cause the dollar to sink and demand for our exports to increase.
But this will also cause massive inflation. Which would you rather have, a job with massive inflation or no job and low inflation?