Scary unemployment, worse than… well ever?

The guys over at Calculated Risk drew a very nice graph on Friday showing just how bad the job loss situation is getting in the US. The graph compares the peak month of employment and shines some light upon the effect the recession is having on the economy. Only yesterday I found myself watching an interesting documentary by Current tv arguing that the U.S. first exported HGH its jobs and has now exported its unemployment to China. Reliable Data from China is notoriously hard to come across, but the (little) anecdotal evidence seems to suggest that things might be worse there than in the U.S.

Click image for full screen version.

A tip of the hat to Rudi von Arnim for discussing the newly released U.S. unemployment figures.

6 comments on “Scary unemployment, worse than… well ever?

  1. Have you seen this
    op ed by Allan Meltzer yet? He cracks me up.
    I think this might be the best rebuttal:
    Reading Comprehension and the WSJ

  2. What’s going on with the WSJ… Is this Mr. Murdoch’s editorial doing, or have they been like this always?

  3. We’ve actually had this discussion at work recently (and Felix Solomon’s neighbors think so too). Everyone in my area wants to end their subscriptions to the WSJ because it’s gone downhill. Told them to get the Financial Times. The FT, now, I love the FT.

  4. China manufacturers our consumption. Of course they will feel an unemployment effect on par with the U.S. The scary thing about unemployment momentum in a consumption based economy is that every time we increase unemployment, their consumption decreases, thus adding more momentum to the unemployment rate increases.

  5. The old issue about what drives unemployment, and what drives the economy is an ever interesting one. but I can’t help but wonder whether the issue of a wage-driven or profit-driven economy affects this…

    As for the WSJ and FT, I like the FT personally, but that has more to do with pages 3-9 which actually have international news, with a section (page in fairness) dedicated to each continent. Not enough perhaps, but sooooo much more than any of the other papers I see.

  6. Benjamin,
    No economy is driven by wages or profits. An economy is driven by production & distribution and proportionate consumption of food, clothing and shelter. These are the revenues of the economy. The costs against these revenues are land rent and proportionate labor wages to pay the rent. In America, we have very little current production, but a lot of distribution and consumption. The risk is that our foreign trade partners realize that giving us their raw produce in exchange for our green paper is a great deal for us and bad deal for them (yeah think?).

    Raw Produce in our global economy is dominated by South/Latin America, Africa, and Middle East, while manufacturing is dominated by China, India and eastern Europe. The goods are then transported and consumed by the western economies which use inflated western currencies to dominate global consumption. However, the more we print, the less valuable our currencies become; making us highly susceptible to the fragile long distance economy.

    As far as WSJ and FT, the WSJ is definitely losing its once unbiased views. The FT is good, but also controlled by politics and money. They are both losing relevance in the soon to be pluralistic economic system controlled by local happenings (i.e. localism).

Comments are closed.