U.S double digits unemployment rate of 1980-1981 vs. 2008-2009 single digit
The early 1980s recession was a severe recession in the United States which began in July 1981 and ended in November 1982.The primary cause of the recession was a contractionary monetary policy established by the Federal Reserve System to control high inflation.

Cause of 1980s early recession…

In the wake of the 1973 oil crisis and the 1979 energy crisis, , stagflation began to afflict the economy of the United States. , Unemployment had risen from 5.1% in January 1974 to a high of 9.0% in May 1975. , Although it had gradually declined to 5.6% by May 1979, , unemployment began rising again thereafter. , It jumped sharply to 6.9% in April 1980 and to 7.5% in May 1980. , A mild recession from January to July 1980 kept unemployment high, , but despite economic recovery unemployment remained at historically high levels (about 7.5%) through the end of 1981. , Inflation, , which had averaged 3.2% annually in the post-war period, , had more than doubled after the 1973 oil shock to a 7.7% annual rate. , Inflation reached 9.1% in 1975, , the highest rate since 1947. , Inflation declined to 5.8% the following year, , but then edged higher. , By 1979, , inflation reached a startling 11.3% and in 1980 soared to 13.5%.

Employment conditions deteriorated throughout the year. , The unemployment rate in the U.S. , reached 10.8% in December 1982 ”higher than at any time in post-war era. , Job cutbacks were particularly severe in housing, , steel and automobiles. , By September 1982, , the jobless rate reached 10.8%. , Twelve million people were unemployed, , an increase of 4.2 million people since July 1981. , Unemployment rates for every major group reached post-war highs, , with men age 20 and over particularly hard hit.


For 2008-2009…

The CEO of NuCor Steel was on Squawk Box this morning. , He said actual unemployment is 13-15% if you calculate it the way they did prior to the 80s when they changed it (for obvious political reasons under Reagan/Bush). , If we don’t hit double-digits it’s likely because the stats are not accurate. , The reality is no one knows what is going to happen. , I ask you one simple question to demonstrate the situation we are in: where is the money going to come from to drive growth if fewer people are employed and overall those who are employed (except for the top 5%) are making the same or less, , and borrowing less (because the banks have stopped lending)? What is going to drive growth, , much less enough growth to create jobs?

Statistics lie. , And we all know who uses statistics. , This recession will be like no other simply because of the fraud being committed around the world not just in the financial industry but others (see Satyam). , It started with Enron and it won’t end for another decade or two until all the fraud shakes out. , Keep your money under your mattress because there is no guarantee you’ll ever see it again if you invest it.

Payroll declines will soon match those of the 1981-82 recession, , when U.S. , joblessness last broke 10%. , But a larger workforce and a healthier starting point are softening the blow

By James Cooper

The labor market hasn’t looked this gloomy since the dark days of the 1981-82 recession, , one of the deepest downturns since the 1930s. , At the recent pace of payroll declines, , averaging more than 400, ,000 per month, , job losses will surpass that slump’s 2.8 million drop in employment by February. , What’s more, , that recession lasted 16 months. , The current slump, , which began in December 2007, , is almost certain to last longer. , All this is raising serious questions about how high the unemployment rate will go this time. , After all, , joblessness peaked at 10.8% in the 1981-82 downturn, , and weekly unemployment claims are already at levels not seen since then.

http://investmentwatchblog.com/us-double-digits-unemployment-rate-of-1980-1981-vs-2008-2009-single-digit/


Republican's, the party of "GET RID OF OBAMA AT ANY COST"!
Edited 1 time by fancyred 02/22/12 09:12.