World Bank warns of global job crisis
Current projections are dim. Challenging times loom large…. There’s little doubt there is a global jobs crisis,” said the World Bank’s senior director for jobs. “Disturbingly, we’re also seeing wage and income inequality widening.” (Yahoo News)
The World Bank’s report, compiled by the International Labour Organisation (ILO), also stated that, despite a modest economic recovery in 2013-14, global growth was expected to remain below trend with downside risks in the foreseeable future, as weak labor markets continue unabated in constraining consumption and investment.
Global job crisis will hit the rich, too.
What the top 1% don’t realize is that the widening gap between rich and poor is already hurting them. This economy cannot recover when even those who remain employed are making less money than they were ten years ago. The division of the middle class into small increases of highly paid people moving into the upper class and with larger increases of poorly paid people moving into the lower class will be self-correcting but painful for all. As the working masses find it harder each year to buy things, the rich lose markets for their companies’ products. The economy stalls and begins to fall out of the sky again.
The rich seem to live in blissful denial of this fact, and, yet, it is simple and unavoidable math. They would do well to care about it a great deal. I call this “economic denial.” They don’t see what they don’t want to see. We are unable to fix the economic problems of the Great Recession because we continue in mass to deny its causes. Just give big bankers more money, and surely everything will be fine for all; but saving the wealth of the rich has created no jobs, even though bankers are now richer where can i buy cheap ambien than they were before the crash.
Richer for awhile, but they, too, will lose when the economy again stalls. The question that haunts my mind is “Will the masses be stupid enough to once again allow their government to bail out the rich?” I am beginning to think there is no end to the stupid willingness of the masses to believe the salvation of the rich is the salvation of the poor.
A practical example of the effects of this widening chasm between rich and poor is given by Marc Faber, publisher of the Gloom, Boom & Doom Report:
McDonald’s is a very good indicator of the global economy. If McDonald’s doesn’t increase its sales, it tells you that the monetary policies have largely failed in the sense that prices are going up more than disposable income, and so people have less purchasing power.” (Moneynews)
Faber claims the poor performance of McDonald’s in August sales is an omen for what is to come soon for the entire stockmarket. What hurts McDonald’s hurts the wealthy. While prices are rising, personal income isn’t, Faber said. When the working class can’t even afford McDonald’s everything falls. At day’s end, an ebbing tide lowers all boats, whether they’re dinghies or mega yachts.
The World Bank’s ILO report warned that persistent slow economic growth would continue to dampen employment prospects.
Global job crisis continues to zap the U.S. of its former economic strength
The U.S. Labor Department said that weekly applications for unemployment aid rose 11,000 to a seasonally adjusted 315,000 in the first week of September. While the unemployment rate dropped a tenth of a percent, that was only because long-term job seekers gave up on the job market and dropped off the unemployment benefit program.