As government data revealed that 651,000 more jobs disappeared in February, a sense took hold that growing joblessness may reflect a wrenching restructuring of the American economy.
The unemployment rate surged to 8.1 percent, from 7.6 percent in January, its highest level in a quarter-century. In key industries — manufacturing, financial services and retail — layoffs have accelerated so quickly in recent months as to suggest that many companies are abandoning whole areas of business.
“These jobs aren’t coming back,” said John E. Silvia, chief economist at Wachovia in Charlotte, N.C. “A lot of production either isn’t going to happen at all, or it’s going to happen somewhere other than the United States. There are going to be fewer stores, fewer factories, fewer financial services operations. Firms are making strategic decisions that they don’t want to be in their businesses.”
This dynamic has proved true in past recessions as well, with fading industries pushed to the brink during downturns before others emerged to create jobs when economic growth inevitably resumed. But with job losses so enormous over such a short period of time, some economists argue that the latest crisis challenges the traditional American response to hard times.
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3 comments:
What I think is the most sad and horrible is that none of us (especially teenagers and younger kids) ever thought we would grow up during a recession, or a possible (future) depression. We have taken life for granted for the longest time. I may be responsible for my cell phone bills, my gas money, and my car insurance but let's face it- life has been simple for all of us. And while many of us have had it rough in different ways, we have never had extreme problems where we had to change our way of life. Every day now we hold on to the hope that we won't lose our jobs, won't lose our money, our homes. If the government can "remake" our economy, good. But I think that they should act before they talk. I would rather see results than hear about what the "plan" to do in the future. Near future or not, I could be out of a job and a lifestyle by then. We all could.
Not only is the thought of losing a job and a way of life scary for many of us, but many of us have resorted to living in tents with barely enough blankets to keep us warm at night. Then, on the other side of the country, people are still gambling at busy Las Vegas hotels and partying like there's no change in the world. I think people need to start realizing that the government cannot fix everything totally. We should go back to how life was in the last depression. We need to realize that, even though our world is different today, we need to start helping each other out. If we wait for the government to stop talking and begin acting, we may have nothing left. I don't know about all of you, but I would rather be proactive and try to help fix this then to lose everything. As long as people stick together and care for each other, America canot be brought down.
Bethann, your response gives me a great idea for a satire. My Modest Proposal is that we all give up our luxury items, cars, clothes, ipods, etc and move into communal tents where everyone shares everything. It won't matter if there is a depression because we will all be in it together. What do you think?
I think it's an interesting thought. It would definitely make people think wouldn't it?
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