During the 2012 election, neither presidential candidate provided a concrete solution to our current job market crisis. This is because high unemployment is desirable for corporations as it boosts profitability by lowering wages. Instead of implementing public policies to create jobs, the Federal Reserve is printing large quantities of money, risking super inflation.
Corporations are only hiring workers in order to increase profits. With jobs becoming scarcer, corporations can lower wages and still gain employees. This greatly affects college students as they are graduating with higher debts, but struggling to find jobs that pay enough to pay these debts off.
Those who do not find jobs are forced to join the 12.5 million people who are officially unemployed or the 9.5 million who are “unofficially” unemployed. The “unofficially” unemployed are the ones not actively looking for work, “discouraged workers,” part-time workers who want to work full-time work. The people who have quit looking for a job are no longer counted in the official unemployment statistic, giving a false sense that the job market is improving.
A large number are seeking to wait out the recession by returning to school and are now graduating; a record 30 percent have bachelor degrees, a number that is expected to rise. The increasing number of graduates will drive up unemployment, while those lucky enough to find jobs aren’t finding one capable of paying off their massive student loans. The trillion-dollar student loan business is yet another example of wealth transference from bottom to top: students borrow money from the wealthy, and pay them back with interest, sometimes exorbitant interest.
The new “private sector” jobs that Obama constantly brags about are much lower paying than the jobs they are replacing. According to a study performed by the National Employment Law Project, 58 percent of all new post-recession jobs come with wages below $14.00 an hour, i.e. a not a living wage.
Article Name: “Unemployment and Hopelessness. The Job Crisis and the US Elections”
Author: Shamus Cooke
Source: Global Research, 9/18/12
Student Evaluator: Sam Sorrell, Sonoma State University
Faculty Evaluator: Keith Gouveia, Sonoma State University