Sunday, December 20, 2009

Newsweek reviews the decade in 7 minutes; unemployment remains high as long as banks do not lend

Newsweek offers its readers a “Decade in 7 Minutes” video here:

It may be an unintentional coincidence that one of Irving Wallace’s novels back in the 1970s was “The Seven Minutes” with a specific innuendo.

Newsweek also offers a discouraging article by Rana Faroohar, “Joblessness is Here to Stay: Short-term prospects may be brightening, but high unemployment will be a fixture for the foreseeable future”, link here.

The biggest reason for the poor job market is that banks are not lending money. The president is already trying to jawbone the banks on this one. The article notes also that in a more individualistic society, when unemployment increases, people just become disconnected from the community as a whole.

One curious feature of the employment market is that it is becoming more people-centered, and probably more female. It simply is too easy to export individual contributor jobs with little social manipulation overseas. All of this is happening after an era where self-sufficiency had been promoted as a virtue in so much of the culture.

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