The global economy is dying a slow death from an income crisis. Middle to lower income citizen's real income has been dropping due to the frenzied labor arbitrage of mega corporations. Demand across a whole spectrum of products is still declining. Governments at all levels: national, state, and local are unable to cover services with dropping tax revenues.
In this cheap labor, cheap product, quality deprived world focused upon draining income from below to fill the castle vaults of CEO, lobbyist, government, and market casino speculators (elites) the average citizen is nothing more than a wage slave to be exploited.
Tiny blips in new job growth in the U.S. since January 2010 are the paltry result of a seriously underfunded non-targeted direct federal government stimulus. In stock market parlance we're in a drawn-out bear market that has bull market aberrations. Similar to the Great Depression, irrational exuberance, ineffective short-term stimulus, and business supply-side myopic focused governments generate short-lived upside economic swings that don't have strong demand 'legs'.
The demand resurgence that the media parrots have been squawking about hasn't yet transpired when capitalist retailers are still experiencing plummeting sales and bleeding red in their bottom line.
- Kohl's April same-store sales drop 7.7%
- Abercrombie & Fitch April same-store sales drop 7%
- Gap Inc. April same-store sales drop 3%
- Aeropostale April same-store sales drop 5%
- American Eagle April same-store sales drop 6%
- Target April same-store sales drop 5.9%
- Dillard's April same-store sales drop 5%
- Stage Stores April same-store sales drop 8.3%
We haven't yet reached the promised land of a sustainable, equitable, and income balanced global economy when companies are still struggling to fill airline seats, ship freight (especially worrying), interest buyers in fashion clothing, and sell electronic games.
- Liz Claiborne sales fall 22%
- Sara Lee has a fiscal third-quarter loss of $336 million
- Southwest Airlines traffic fell 0.6% in April
- Warner Music revenue down 1%
- Nintendo revenue falls 22%
- Orbit International net sales falls 8.5%, Net loss of $647,000
- FreightCar America revenue falls 50.6%, Net loss of $3.3 million
On the employment front the U.S. government reported that 290,000 jobs were created in April 2010. But upon closer examination of the (BLS USDL-10-0589) labor report it becomes apparent that out of this total, 59,000 were government jobs and of that figure 48,000 were temporary Census jobs. This means that the private sector only contributed 231,000 jobs.
What is equally troubling about the 231,000 jobs created by the private sector is that a significant proportion of these new jobs were low paying part-time jobs. From March 2010 to April 2010 101,000 jobseekers who were seeking full-time positions took part-time jobs because full-time employment was unavailable. This means that a good many of these 231,000 jobs created by the private sector were inferior wage slave labor positions that required the worker to sink even deeper into poverty without even the most basic of benefits like healthcare. Don't forget, most of the provisions of the newly enacted U.S. healthcare bill don't take effect until 2013.
Even worse was the increase in the unemployment rate from 9.7% to 9.9% that added 255,000 souls to the ranks of the unemployed. An army of long-term (over 27 weeks) unemployed that increased by 169,000 from March 2010 to April 2010 to an astounding total of 6.7 million - up 1.8%. This is a surplus labor pool that has entrapped 61.3% of U.S. workers. These are workers who've been actively seeking employment for 15 weeks or more but still remain unemployed.
In an economy that conservatively requires a minimum of 100,000 jobs to be created monthly just to keep up with new workers entering the labor force from either abroad or from natural population growth the recent figures are anything but suggestive of an improving economy. With the civilian non-institutionalized population increasing by 2.1 million from April 2009 to April 2010 the U.S. economy is still unable to fill the 'sink hole' of the ever-expanding surplus labor pool.
This is a surplus labor pool that benefits the multi-national corporations in their thrust to turn the globe into a low-cost labor gulag. The more plentiful the labor supply the lower still these employers can slash wages because more and more down trodden citizens will be fighting for fewer and fewer jobs.
This is a short-term profit oriented, ultimately destructive approach taken by these all powerful mega corporations. In the end the economic lords may have stuffed their castles full of loot by working us to death producing their cheaply made junk but in this one-sided economy without adequate income to purchase the cheap junk that we (the workers) make demand plummets. With demand careening headlong into the ravine the income inflows of these lords of finance are eventually choked off.
In our current state of affairs lobbyist directed governments that further the interests of their elite handlers ignore the interests of the people. By ignoring the people (the demand side of the economic equation) they've sealed their fate, their demise - the imploding of their elite kingdom.
Multiple fractures across the global society are weakening its ill-conceived foundation of elite favoritism. In time, the people who've been herded like cattle by these elite capitalists will stampede over the ruins trampling these leaches underfoot.