U.S. Unemployment Soars

(CBS/AP)  The nation's unemployment rate bolted to a 14-year high of 6.5 percent in October as another 240,000 jobs were cut, the government said Friday. It was stark proof the economy is almost certainly in a recession.

The new snapshot, released by the Labor Department, shows the crucial jobs market deteriorating at an alarmingly rapid pace.

The jobless rate zoomed to 6.5 percent in October from 6.1 percent in September, matching the rate in March 1994. Employers have cut jobs each month this year.

Unemployment has now surpassed the high seen after the last recession in 2001. The jobless rate peaked at 6.3 percent in June 2003.

Employers got rid of 240,000 jobs in October, marking the 10th straight month of payroll reductions.

The government also reported that job losses in August and September turned out to be much deeper. Employers cut 127,000 positions in August, compared with 73,000 previously reported. A whopping 284,000 jobs were axed last month, compared with the 159,000 jobs first reported.

So far this year, a staggering 1.2 million jobs have disappeared.

The employment market is much weaker than economists expected. They were forecasting the unemployment rate to climb to 6.3 percent in October and for payrolls to fall by around 200,000.

Job losses were widespread. Factories cut 90,000 jobs, construction companies got rid of 49,000 jobs, retailers cut payrolls by 38,000, professional and business services reduced employment by 45,000, financial activities cut 24,000 jobs, and leisure and hospitality axed 16,000 positions.

Economists say the worst is yet to come.

David Wyss, an economist with Standard & Poors, told CBS News correspondent Anthony Mason, "Well, I think we're gonna see this kind of number through the middle of next year."

Wyss expects the unemployment rate will continue to rise until the end of next year.

"We're now looking for a peak up over 8 percent," Wyss told Mason.

In a related development, Ford plans to cut about 2,260 more jobs, the latest in a vicious cycle of vanishing jobs and stresses on American consumers that is spelling deeper trouble for the already sinking U.S. economy.

In reporting Friday that it lost $129 million in the third quarter and went through $7.7 billion in cash, Ford Motor Co. said it will cut another 10 percent of its North American salaried work force costs as it tries to weather the worst economic downturn in decades.


Keeping One's Head Above Water

Fifty-two-year-old Jaclyn Hirsty lost her job with a swimwear company 15 months ago.

"The company I worked for packed up and moved back to Italy and laid everybody off," she told Mason. She has been living off her savings ever since.

"As my savings have just sunk it's been getting harder and harder," Hirsty said.

Hirsty swims to relieve the stress. She's a world-record holder in her age group - who's now struggling to keep her head above water.

"I don't know what the answer is or what it will take to put people like me back to work, but something has to happen," she said.

Hirsty lives in Rhode Island, which now has the nation's highest unemployment rate: 8.8%. The state job center in Providence has had to put in more phone lines to meet surging demand.

And traffic at the food pantry at the Jonnycake Center of Peace Dale, R.I., has tripled this year.

"We have seen lots of folks who have lost their jobs, been laid off, that are coming to us now because they have no place to turn," said Susan Gustaitis of the Jonnycake Center.

But with Americans increasingly worried about losing their jobs and their retirement savings, many are spending less … and less spending only leads to more job cuts. That's why many economists are saying another stimulus package is needed ... in a hurry.

[rhs648]

People with skill, knowledge, and the means can make money in any economy. As an example, stock prices are the lowest they have been for a number of years. People who buy stocks now will make a lot of money once the economy improves. People who have money can buy homes at a bargain and will be rewarded as prices begin rising. If a person is astute and has the money, this recession provides plenty of opportunity. A company I worked for once leased office space from a man whose father bought dozens of homes during the depression at bargain prices. He literally paid pennies on the dollar. The depression ended and these homes are worth a lot of money today and are still owned by the same family.

[rhs648]

One reason the wealthy are unlikely to pay higher taxes are tax free municipal bonds. These bonds generally earn between 4 to 5 1/2% per cent interest and are not usually subject to federal, state, or local taxes. A bond is simply a loan to a governmental agency and are considered very safe. In fact, there are bonds which require the government to raise taxes to meet the bond obligations. Further, governments encourage people to purchase tax free municipal bonds and they are easy to buy and sell. People with money can simnply shift their money to tax free municipal bonds and avoid paying taxes. Taxing the wealthy is pretty much a myth becausre they have the lawyers, accountants, financial advisors, and the sophistication to avoid taxes. The more government spends, the more it needs to borrow. This too is a plum to people with money as they purchase more bonds. By necessity, the middle class must be taxed to honor these bond commitments.

[torocaca]

Reagan holds the unemployment record for the last 40 years with the highest monthly rate of 10.8% two years into his first term, and an average for his 8-year term of 7.5%. The low during Reagan''s term was 5.3, when he left office.

Clinton''s average was 5.2%. His high was 7.1 when he took office and his low was 4.0 when he turned it over to Bush43. Clinton is the only president in 40 years to have a continual decline in the unemployment rate.

Nixon had the lowest overall unemployment rate during his term at 5.0%, but he inherited a 3.4% rate from Johnson. Unemployment continually increased during Nixon''s term. You might recall that Nixon''s policies caused fuel prices to sky-rocket during his term.

Do you think that the cost of fuel, the unemployment rate, and a faltering economy have anything in common?

I think the common factor might be a "bull-headed" president.

[down-ndirty]

The rest is history. But for some reason, CLINTON DOESN''''T TAKE THE BLAME.
Posted by txgrouch2007 at 08:46 PM : Nov 07, 2008


If you want to go back in history to lay blame, why not go back to Reagan, who did NOTHING after Hezbollah killed over 200 U.S. Marines and other U.S. and French military in the Beirut Marine Barracks bombing.

Or, go back another 30 years to Eisenhower when he supported the overthrow of a fledgling democracy in Iran and re-installed the tyrannic Shah dynasty.

The ultimate overthrow of the Shaw and the taking of the U.S. Embasy in Iran are directly related to Ike''s OPERATION AJAX.

IMHO, Ike is the reason for most, if not all, or our problems in the middle east. These problems were exacerbated by an unintelligent but ambitious maverick son of yet another political dynasty, this one with the name of Bush.

OBTW: Bush''s grandfather did business with Hitler during WWII.

Thank god the Bush dynasty, and the Clinton dynasty that might have been, are FINISHED.

[down-ndirty]

We need to start learning what our new lifestyle will be after a few years of Democrats running our country.
Seems like some famous Democrats have already sampled Cisco at some point...
Posted by txgrouch2007 at 08:15 PM : Nov 07, 2008


Still blaming the Dems, hey, txgrouch?

If you are an "average" American your new lifestyle probably won''t be as good as it was during the Clinton administration, but it sure as hell won''t be as bad as it has been for the past 8 years.

Come to think about it, Rethugs have dominated our political scene for the past 40 years. We''ve only had 12 years of Democratic administrations since Johnson left office. And, ironically, the Clinton admin had the lowest unemployment and the best economy of the past 40 years.

So who do you blame?

[patrik1974]

Most American want lower taxes. The best way to accomplish this, with out the increase of the nation deficit would be to increase funding for Department of Homeland Security and eliminate the Department of Defense. We all know these departments are repetitious, and the Department of Defense is all about the offense. American needs to protect the homeland both in security and economy, before we should do military charity work throughout the world.

[BeyondGreen]

Energy Independence needs to be included in the realm of our economic issues. Our dependence on foreign oil impacts every aspect of our society and economy. This past year we were slammed by high prices at the pump that drained our wallets. The cost of food and every consumer product has risen because of increased production and shipping costs. The average family had no money left over to spend, save or invest. So we tighten our belts, we spend less because we have less and sadly that results in even more jobs being lost. Jobs and homes have been lost in record numbers as a direct result. If we were lucky enough to hang on to our jobs most have seen a cut in hours and our paycheck. We have so much available in the way of FREE energy, solar and wind that can be utilized to replace oil. Hybrid and electric plug in cars would replace another huge percentage of our dependence on foreign oil. The last stimulus checks cost our government 168 BILLION. It did zip for our economy.That money could have gone a long way towards getting America started on the path to energy independence.Jeff Wilson has a great new book out called The Manhattan Project of 2009 Energy Independence NOW. I highly recommend this book to anyone who is worried about our economy and interested in seeing our country become energy independent! http://www.themanhattanprojectof2009.com

[rhs648]

Instead of being the party for lower taxes, perhaps the Republican party should redefine itself as the party of more efficient use of taxes and resources. With accountability and proper planning, the taxes already being collected could provide more services or even the possibility of lower taxes in the future. Likewise, more efficient use of resources would improve the lives of many people. Another idea is for the government to establish a health insurance plan that is cheaper than private insurance plans and to offer the American people the opportunity to enroll in the government plan or in a private plan. When insurance companies begin losing customers, they will be forced to lower premiums if they want to stay in business. The Republican party could spearhead such a program. By showing the American people that their interests are at the forefront, the Republican party could once again attract voters.

[antizion]

Only one thing will restart the economy and that is cheap gas prices. But then, only one thing was responsible for tanking the economy and that was an operation run by Morgan Stanley offshore to bid up fuel prices.

Now they get billions from the tax payer thanks to our stupid corrupt congress.

[txgrouch2007]

Clinton took office Jan 1993
Posted by Marshall65 at 08:29 PM : Nov 07, 2008

And the WTC bombing took place Feb 1993. That was the warning that the WTC was a likely target for terrorist attack.

The placement of the bomb in the underground garage indicates that they intended to sever the support columns and topple the building. They failed, but the intent was clear.

CLINTON HAD EIGHT YEARS to prepare for the 9/11 attack. And yet, while the preparations were taking place under his nose, with one of the 9/11 pilots being TURNED IN FIVE TIMES to the FAA, Clinton DID NOTHING. He even WEAKENED our security by his EXECUTIVE ORDER to make airline flight delays the TOP PRIORITY OF THE FAA after their funding was cut to "BALANCE THE BUDGET..."

The rest is history. But for some reason, CLINTON DOESN''T TAKE THE BLAME.