Wednesday, June 6, 2012

I posted the following Comment to the online edition of the T&G following the article 

Speaking in Worcester, Boston Fed Reserve chief backs more stimulus

My comment:

So even the head of the Boston Fed admits the economy is still in a deep slump with trouble ahead.  His solution?  More "Operation Twist", which amounts to a giveaway to the banks.

On Friday Massachusetts loses 13 weeks of Federal Emergency Extension of Unemployment Insurance.  Congress in its wisdom raised the threshold for state unemployment rate when it would "trigger off" from 6% to 7%.  In December, unless Congress writes a new bill, all the Extensions will end and UI will be back to normal: 26 weeks. 

But the Mass rate has been dropping, down to 6.3% in April.  So why the worry?  What's Mr. Rosengren worried about?

How about this: the official U3 "unemployment rate", like the official "cost of living index", is a lie, and everyone that cares to think about it knows it.  While U3 keeps dropping, the "Participation Rate", the proportion of the working age population that is either actively looking for work or working, is also dropping steadily.  

It's time to get serious about what's going on.  The "Great Recession" ended three years ago, they say, but for regular people there is no recovery.  Those who are working are living in fear, working longer and harder for less. 

Real unemployment, counting everyone who would be working in a really good economy, is at Great Depression levels!, putting Government statistics together differently, comes up with a figure of 22.5% and rising!  And this doesn't count the millions who are seeking shelter by collecting for disabilities!  Yet by keeping the conversation about the "Official Rate" and not admitting that we're in a real Depression, the elite have been able to take real job creation off the table, and slash emergency help for the people.

Now the European debacle is pushing the economy toward another cliff, but the safety net for regular folk is badly damaged!

The people need spending power now, or there will be no recovery.  We need jobs or income now! Congress, Obama and Patrick need to get serious about it!
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