Another half million jobs lost
February 1, 2009
Market Watch is reporting that another half million people have lost their jobs in the past 4 weeks. We saw huge numbers of people leaving the Advertising Agency industry, but remember these people were fired from their ad agency because their clients were shedding jobs. It appears the trend is to start your own advertising agency. The BDA model is near collapse, and the smaller firms are experiencing pain that they most likely have never encountered since their inception.
Half a million families have lost a source of income to pay rent, mortgage, grocery bills, health bills…. in the past 4 weeks… we don’t know how we can stress how big of a problem this is. These people are going right to the unemployment line, and dumped into a job market where the current unemployment rate is 10% or higher. Some areas already are experiencing Great Depression levels of unemployment, such as Detroit. Basically the problem is not many companies are hiring while they are shedding jobs like no tomorrow.
A solution needs to be found, yesterday. An increasing level of unemployment will continue to put a massive damper on any chance of economic recovery. People stuck on unemployment have a greater chance of skipping their mortgage payments, a greater chance of going uninsured and a greater chance of not being able to send their kids to college, meaning the decisions we take now will affect us for generations.
We can’t let this run for years, if that is the case we are going to be looking at great depression level problems that lingered for generations.
So what is the solution? So far our solutions have been rather horrific, everything from printing money to putting the cost of borrowing non-existent bank money at zero. These are all almost financial trickery that has yet to put a dent in the economic free fall that we are in.
Every day this goes on is another month or two till it recovers, literally. Every recession recovery we have seen in the past 20 years was a jobless recovery. This means that when the economy starts to pick up, the guy that just got laid off last week will still have months, if not longer to find a similar level paying job.
Everyone is stating that we need “a new bubble” some sure fire way to get the economy moving. We all know what the problems are with bubbles, it’s generally when they pop.
The .com bubble moved the economy though the 1990′s and forced a nasty, but very short term recession in the 2001-2002. The Housing bubble moved the economy though the 2000′s but this bubble was huge, millions of people made millions, and the collapse of that bubble was staggering (and we are currently watching the bubble implode around us).. what’s the next bubble?
The next bubble is urged to go Green, some eco friendly energy invention that will dazzle us all. Wind power, Hydro Electric, solar, some killer plug in battery that will power our cars from a solar panel.
Who knows what the next bubble is, but we know it’s coming.. and when it does THAT will save our economy for a few years.. until that explodes.
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