Unemployment Rate and Lack of Jobs Creation Push the Great Depression II in Motion
The causes and nature of the first Depression have been studied extensively. It has become increasingly obvious that there were a series of events that collided to bring forth the “Great Depression.”
Be it fragmented fiscal policy, bank failures, collapsing prices on farm goods, the events of the economic malaise caused by the Versailles Treaty in Germany, the collapse of foreign trade, or the stock market collapse of 1929, it would be difficult to deduce that one single event caused the Great Depression.
In real terms, deflation had set in, and the “Perfect Economic Storm” came into being.
When President Obama took office he should have made the economy his number-one priority. Instead, he chose to make “Health Care Reform” his number one priority because he had complete control of the House and Senate — a perfect storm.
No incumbent President has won re-election with an unemployment rate above 7.2% since the Great Depression. Today we are at 8.2% for the third month in a row.
This continues to be the longest streak — 41 months — of unemployment at 8% or higher since the Great Depression. And recall that back in 2009, President Obama predicted that if Congress passed his $800 billion stimulus plan, the unemployment rate would be around 5.6% today.
Where do you think the unemployment rate will be by the time the election rolls around? As of June 2012 the real unemployment rate is nearly 15% — the reported number isn’t the same as the real number.
During the Great Depression in the 1930’s the United States didn’t have a food stamp program, it had bread lines and soup kitchens. Today, these bread lines and soup kitchens do exist — in the form of state government assistance. With over 40 million Americans receiving some sort of food assistance, could you imagine how long the lines would be today. That’s nearly 15% of the United States population — notice how it matches the “Real Unemployment Rate.”
The government reported that the economy created a mere 80,000 jobs in June 2012, optimists had only been predicting 90,000-100,000 would be created. Early in the Great Depression II, consensus was that it would take over 300,000-350,000 new jobs a month just to start getting the unemployment rate down a little bit.
The longer the Federal Reserve continues to allow this government to spend irresponsibly, the longer this Great Recession will continue, until it becomes The Great Depression II.
Tags: Bread Lines, Congress, Deflation, Federal Reserve, Food Stamps, Government, Great Depression 2, Great Depression II, Health Care Reform, Jobs Creation, Perfect Economic Storm, Real Unemployment Rate, Soup Kitchens, Stimulus Plan, Stock Market Collapse of 1929, Unemployment Rate