(excerpt)...Even so, there's no indication that the job's situation is turning around anytime soon. Last Friday, the Labor Department reported that 67,000 new private sector jobs were created in August, a notable improvement. Unfortunately, at least 125,000 are needed to keep up with the growth of the potential work force. That means the economy will have to grow at a 2 to 2.5% GDP before we see a real decline in the jobless figures. And, now that the Fed and the administration are focused on "belt tightening", it is unlikely that the government will provide the necessary resources to dig out of the hole the country finds itself in. Gluskin Scheff's David Rosenberg summed it up like this,
"We are currently experiencing the recession with the slowest job creation in history. And based on our prior estimates, the recession will last around 85 months before we regain the unemployment rate seen at the onset in December 2007."
Meanwhile, the social safety net continues to get more and more frayed as the slump persists. Homeless shelters and food banks are stretched to the max while the Department of Agriculture’s Supplemental Nutrition Assistance Program (aka--the food stamps program) reports that 41 million people--more than one in eight people--now need government assistance to feed themselves and their families. That's up 10% from last year.
Ordinary working people are hurting bigtime, still waiting for the prophet Obama to lead them to the promised land. But Obama has abandoned "Big Government" as the answer, whether it be a second round of stimulus, government jobs programs, or expanded welfare assistance. He'll have none of it. Sure, he'll playfully joust with his GOP rivals, but he'll never seriously diverge from the path cleared by his ideological twin, Ronald Reagan. (Read the whole article)