The ongoing and rapid collapse of the US and Global economy, far from being an abstract series of events, is being brought home forcefully and concretely to millions of people on a personal level with the loss of their jobs and consequent drastic reduction in their ability to not only purchase things they want for themselves and their families but even to purchase the basic necessities of life and obtain things they need.
A cycle pushing us into a self reinforcing deflationary spiral in which less and less people are able to support the dwindling economy with their purchases which causes even more job loss and less economic activity, and so on, as we saw highlighted in very sharp focus in How Bad? This Bad with the graph from Swampland compiled using Bureau of Labor Statistics numbers that:
…compares the job loss so far in this recession to job losses in the 1990-1991 recession and the 2001 recession — showing how dramatic and unprecedented the job loss over the last 13 months has been. Over the last 13 months, our economy has lost a total of 3.6 million jobs – and continuing job losses in the next few months are predicted.
By comparison, we lost a total of 1.6 million jobs in the 1990-1991 recession, before the economy began turning around and jobs began increasing; and we lost a total of 2.7 million jobs in the 2001 recession, before the economy began turning around and jobs began increasing.
The response from the government so far, from the Bush administration and the Congress, and continuing through into the new Obama administration, has been attempts at bailouts of the very wealthy in the financial sector, through shoveling money at manufacturers such as the auto industry so they can continue producing products in the face of crippling reductions in sales revenues, effectively “stealing” money from their prospective customers who were already more and more unable to buy their products, to finally with the current administration to an ostensible “stimulus” bill supposedly aimed at “creating” jobs.
All of which has been and is being done by saddling taxpayers, the very people these attempts have been ostensibly aimed at “helping” with long-debunked “trickle down” economics, with enormous and growing crushing future debt and thus crippling their future as well as present ability to purchase products and services, and crippling future prospects for an economic recovery.