Monday, September 22, 2008

The Story of the Economic Collapse from Main Street

Sinking_ship More from Bloomberg: Joblessness Rising in 12 Battleground States for Obama, McCain

The following news stories from the Associated Press this past Friday confirm that that Wall Street financial meltdown is also being felt throughout the country on Main Street.

From the Associated Press on September 19th:

Florida's unemployment rate rose to 6.5 percent in August. According to the state labor department that's the highest the state has seen in more than 13 years. The number is up from 6.2 percent in July, and up from 4.2 percent since August 2007. The state's total number of jobs lots in the past year rose to 99,100. According to federal numbers, that's the largest loss in the nation for the third month running. 606,000 residents are currently without work in the state. In Miami-Dade County, the unemployment rate is 5.5 percent, up from 3.8 a year ago, according to the U.S. Bureau of Labor Statistics.

Adjusted numbers are not available for other Florida counties, but Broward's unadjusted number is 6.1 percent, up from 3.9 a year ago. Monroe County is at 4.8 percent, and was at only 3 percent in August 2007. Florida's unemployment numbers are being pushed by job losses in the construction industry and related fields. The current national rate is 6.1 percent. Only Rhode Island saw a larger unemployment spike in the past year.

Again from the Associated Press on September 19th:

Ohio's unemployment rate rose again last month, to 7.4 percent, and the state is one of many seeing the worst joblessness in years. Michigan has reported an 8.9 percent unemployment rate for August, and unemployment hit 8.5 percent in Rhode Island, the highest in 15 years.

The loss of manufacturing jobs has pulled Ohio's rate to a 16-year high. The last time the state had 7.4 percent unemployed was in October 1992. The Ohio jobless figure tops the national rate of 6.1 percent. The state Department of Job and Family Services says 445,000 Ohio workers were out of work in August. That's nowhere close to the record of 715,200 who were unemployed in December of 1982.

Finally, one last one from the Associated Press on the 19th again:

A record number of Rhode Island workers are searching for a job in as the seasonally adjusted unemployment rate has risen rose to 8.5%.The August showing is its worst in 15 years and more than 2%age points above the national rate.Michigan's unemployment rate was 8.9% in August. The number of people looking for work in Rhode Island grew by 4,300 since July to a record-breaking total of 48,800 last month. The state unemployment rate stood at 5.1% during the same period last year.Rhode Island shed an estimated 1,200 jobs from July to August, marking the eighth-straight month of jobs losses.

Given these astounding unemployment figures, it is imperative that any bail out of Wall Street also consider how to turn around the economic carnage being felt in many states around the country. 

A bailout only focused on the financial markets neglects responding to the devastating consequences unleashed by eight years of deregulatory strategy and again establishes the need for common sense regulation of all aspects of the American economy. 

PS

http://lawprofessors.typepad.com/laborprof_blog/2008/09/the-story-of-th.html

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Comments

Raw capitalism is dead. RIP.

We need more regulation to make sure Wall Street banks don't take Main Street for another ride...ever again. I hope we never hear from the "de-regulators" again.

Posted by: Eugene Lee | Sep 25, 2008 10:52:48 AM

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