The Unemployment Rate

We are now at a breathtaking 25 million people who are unemployed since this recession, oh heck, depression started.  25 million.  And that's just those who are reporting.  More than likely there is a greater number of people underemployed or chronically unemployed for a variety of reasons.

The international governments are attempting to do something, and world leaders announced, after all the theatrics (see, the agreements on what the are going to do have been worked out long before Air Force One touched down in London), a global stimulus of 1 trillion dollars.  

The see-saw is, however, convincing highly leveraged employers to employ workers when they are madly scrambling to find cash to service their debts, pay calls on stock used as collateral which is not worth the amount secured, or merely have money to continue their own lavish life styles.  Right now employers are reluctant to hire much less retain people.  

The Obama Administration now believes that the effects of their stimulus are beginning to show.  They point to increases in paychecks from the reduction on income tax withholding.  However, if you don't have a job, this is moot.  And the increases in paychecks are, frankly, miniscule (around $12 a week) compared to the increases in cost of gas, fuel, milk, eggs, cheese, fruit...

Usually when the unemployment rate goes up, Wall Street reacts with a bump.  But as I type this, the market is down.  Wall Street usually feels unemployment is good.  It keeps the cost of labor down, and hence more profits for corporations.  But perhaps this morning, the Lords of Money are thinking that an economy that relies on consumption (remember 70% of the American economy is about buying stuff) can not recover if people don't have an income.  Hello!

25 million.  The number will increase.  It's scary.