Hmm ... what happens when a bankrupt govt can no longer afford to prop up a failed economic system?
Hmm ... let's see:
--- Has GDP growth nosedived? CHECK
-- 2011 GDP growth has decelerated by more than 50% from 2010.
--- Have initial jobless claims reached recession-era levels? CHECK
-- Initial jobless claims are back around 430,000/week.
--- Has youth unemployment skyrocketed? CHECK
-- Only 25% of teens can find work.Teen joblessness projected to soar this summer -- breaking all records for youth unemployment
Unemployment crisis devastating for teens
CHICAGO — A record-low one in four U.S. teenagers will land a summer job in the coming months as a result of a still-poor job market and lost federal funding, according to a report issued on Monday.
As a consequence, urban studies experts said cities like Chicago -- where summer unemployment among African-Americans aged 16 to 19 years approaches 90 percent -- could experience a rise in street violence. "Both national and local leadership continue to ignore the plight of youth who are most at risk for potential violence as a result of being left on the streets in the summer months when crime is at its most explosive," Chicago Urban League President Andrea Zopp said in a statement.
The summer employment rate among U.S. teen-agers this year was projected at between 25 percent and 27 percent, based on an analysis of four decades of employment trends by Andrew Sum of the Center for Labor Market Studies at Northeastern University in Boston. That would be a post-World War Two low, while as recently as 2006 the teen summer employment rate was 37 percent.
U.S. economic growth has been sluggish since the recession ended in June 2009, with job growth lagging the recovery and unemployment still at a lofty 8.8 percent. The long-term impact of higher summer joblessness among young people is a less-experienced work force and increased government spending due to lower lifetime earnings, reduced tax revenues and higher prison costs, experts said.
... Federal stimulus dollars directed to cities and applied to summer jobs programs have run out and the funding was not renewed by Congress
SPRINGFIELD, Ill. (CBS/WBBM) — The worsening economy has now hit teenagers, and new statistics for Illinois show that African-American teens in particular are more likely to be without a job. As WBBM Newsradio 780’s Dave Marsett reports, state unemployment statistics for 2010 show the unemployment rate for white youths is 24.7 percent, but it’s nearly double for black teenagers at 47.7. In 2009 those numbers were 50.2 percent for black teens and 21.8 percent for white teens.
The problem with having 50% of a nation's GDP reliant on continued govt spending is that when a govt becomes bankrupt and can no longer afford a massive welfare state, then GDP plunges and joblessness increases.
Happily, oil is still dirt cheap, thereby enabling the private sector to continue to expand. Oh ... WAIT ... oil is now around $113/bbl ... the highest
level since 2008 ... Well, maybe Heli Ben can continue printing more money to keep the economy on life-support ...