144. Jobs and depression
July 6, 2009 § Leave a comment
The talk of bottoming out of the fall is predicated on rise in purchasing leading to rehiring people who were fired.. Generally in an economy this happens because a point is reached where people’s needs become strong enough to break lose some of their cash to make purchases, and those purchases mean jobs making the things people are willing to pay for. And a cycle or rehiring replaces a cycle of downsizing.
The problem is, in our current case, the things people want are not made or makeable by the people out of work.
So as each job is terminated out of necessity, that fired person stops being a consumer, which mans more jobs are threatened because of the lack of buying. Thus each lost job leads to more lost jobs – until. But there’s the rub. The normal “until” is not operative in a society that has ceased to make its major goods, and lost the machinery and skills to do so.
Hence the economy will continue to deteriorate until…well, since there won’t be a job recovery. Violence.