It's already too late for millions of Americans who have lost their jobs

In a recent column, Bob Herbert, a New York Times writer, portrays what I and others have been saying for many months. Average Americans are facing economic devastation that policymakers have yet to fully grasp. Millions of people who were firmly entrenched in the middle class now find their savings gone and futures looking more dismal by the day. Even if they return to work, it's unlikely many will be able to recover to the point where they can avoid living on the streets in old age. The damage has already been done and returning to work is becoming a near impossibility as employers continue to sit on profits.

This is a national emergency on a scale that we've never seen because there is no light at the end of this tunnel, no confidence that government and business will unite to pull us out of this. Quite the contrary. Sadly, we are approaching these problems like we have in the past, not realizing the uniquely catastrophic circumstances of this particular recession that has targeted the middle class while those on the top have quickly recovered via bailouts and other perks or privilege. America will soon be the ultimate have and have-not country.

With the exception of commentators like Herbert, the news media doesn't seem to understand the depth of the emergency. Elected officials are using the collapse of the middle class to score political points instead of finding solutions. With each savings account that is drained goes the hopes of many Americans. Hundreds of thousands are already struggling to simply clothed and feed themselves. These are people who three years ago had homes, nest eggs and college accounts for their kids. They are victims of what was probably an overzealous reaction by many employers to cut payroll to the bone. Meanwhile, the media barely scratches the surface of the most profound story since World War II.

Some who were in the middle class are losing the will to go on. This class of people did everything right, or so they thought. They educated themselves. Worked hard. And now they can't pay the electric bill. That changes people, particularly people who once prided themselves on being self-reliant. It changes the fabric of a society. We can fund wars but we can't pay to create jobs? We can export entire professions and grant millions of work visas, but can't provide employment for our middle class? It's tragic.

This recession is a silent killer. But it's only silent because people in power have their hands over their ears. In fact, the term "recession" doesn't quite explain the depth or complexities of what is really happening at the core of our society, in the smallest towns and biggest cities.

It appears survival of the fittest is the new American norm. Those who have jobs are choosing to not think about those without paychecks. Those in a position to hire aren't doing so in order to fortify their security. People in government make job-creation policies that have no teeth so that they can survive another election season without making too many waves. The millions of people impacted the most by the economic collapse will perish soon enough, long before their time, leaving the country to those who protected their riches and turned their backs on former colleagues, neighbors and friends who weren't quite as fortunate.

Read the Herbert column.

Unreliable news: A recipe for collapse

Here's an interesting article about how downsized newsrooms and the outsourcing of reporting/editing can lead to inaccuracies, journalistic ethical problems and credibility issues in the stories we read or watch on television/online: http://www.nytimes.com/2010/01/18/business/media/18papers.html?hpw

Credibility is worth its weight in gold to most legitimate media companies. It's the lifeblood of newspapers like The New York Times. The public is well served by media that strive to get it right. So if the trend of errors and embarrassing mishaps continues, it could mean another financial setback for mainstream news organizations. An unreliable product is not a recipe for success. Without the professional newsroom gatekeepers, almost anything the public reads or views will be suspect and less attractive to customers.

Poll: Mental health issues on rise

Excerpts from The New York Times:

“Everything gets touched,” said Colleen Klemm, 51, of North Lake, Wis., who lost her job as a manager at a landscaping company last November. “All your relationships are touched by it. You’re never your normal happy-go-lucky person. Your countenance, your self-esteem goes. You think, ‘I’m not employable.’ ”

Joblessness has wreaked financial and emotional havoc on the lives of many of those out of work, according to a New York Times/CBS News poll of unemployed adults, causing major life changes, mental health issues and trouble maintaining even basic necessities.

This is no time to exhale, Mr. Norris

Floyd Norris is financial writer for The New York Times and The International Herald Tribune. He covers finance and economics. Apparently, Norris believes the job drought might be over, which is an astonishing conclusion to make based on today's modestly good news of unemployment dropping from 10.3% to 10.0% in November.

It's opinions like this that allow politicians to exhale and create a false sense of things improving, making it less likely that job-creation will remain near the top of the national agenda. But in the real world, the middle-class folks I know, employed and unemployed, don't see any significant job gains on the horizon. And believe me, I contact a lot of people about work on a weekly basis in my job search. The news I get from potential employers is almost always 100% discouraging. They simply have no plans to hire.

Granted, there are the occasional tales of people going back to work, but usually at lower pay or fewer hours than they previously worked, meaning they are still struggling. That's not going to bolster the general economy much. Those folks aren't going on shopping sprees this Christmas. The jobs that are popping up are jobs with salaries that people might have made 20 years ago but can't live on today. Those lucky enough to find comparable pay to their previous jobs are more likely to save at a higher rate, meaning they aren't going to buy goods that help grow businesses that allow for more hiring. The destruction that comes from a lack of public confidence, due to companies slashing jobs, comes back to those same companies that now can't sell their products because fewer people have expendable cash. In an odd, ironic twist, companies laying off people are actually hurting themselves. They might enjoy the immediate gains that come from a lighter payroll, but the domino effect eventually returns to haunt them as products go unsold. So then there are more layoffs. It's a vicious cycle.

It's frustrating to see some businesses cutting more employees than need be because it feeds into the entire economic mess were in. I see it happening in the newspaper industry, mainly because certain companies are carrying such high debt that their once-fat profit margins are dwindling. Yet, they are still turning a profit. Perhaps not enough to keep investors and boards of directors happy, but nonetheless some publishers are making money. The unfortunate thing now is that to increase profits, they are getting rid of workers and blaming it on the recession or unions, when in fact the blame lies with the folks who ran up the debt. (Have you seen the new New York Times building where Mr. Norris works?) This quick fix has ruined careers, bogged down the economy, destroyed consumer confidence and rippled through millions of American households like an endless tsunami. There is a lack of compassion and even a shortage of patriotism in the way the workforce is being dismantled.

I would profoundly welcome feeling optimistic again, but until I see the real unemployment/underemployment rate dropping (the U6 number), and until I can get through a week or two without reading about more companies laying off workers by the dozens or hundreds, I respectfully disagree with the opinion of this particular Times columnist.

We have to keep the pressure on politicians and business leaders to find a real and lasting solution to the unemployment problem. There needs to be a greater sense of urgency from government, business and even the media. I suggest Norris walk around some Florida neighborhoods and witness the countless foreclosure signs still going up. Maybe a stroll through almost any downtown outside of New York City, where there are numerous empty storefronts, would give him some perspective. He should take a look at the empty desks that are likely abundant in his own newsroom. Tell me their is a sense of optimism in you, Mr. Norris, when more cubicles are vacated in 2010.

It's tempting to cling to any good news these days, but to imply that the drought might be over is bordering on irresponsible. I don't completely trust unemployment numbers, nor should any good journalist draw too many conclusions from this sort of data. Too many folks are falling through the cracks and not being counted by the Labor Department. If a columnist at The New York Times can't see that, well, I question his observation abilities.

Disappointed to see the Octoidiot on the home page of The New York Times web site today. Seems even the most reputable of news organizations are lowering their standards these days.