You try to be cynical but you just can't keep up

There are actually people in this country who think it's good that our unemployment rate is at 9.7 percent (and that's a lowball figure; it's really higher than 16 percent when you count part-timers and discouraged job seekers). Susie Madrack at Crooks and Liars writes about the people who see a silver-lining in the jobs crisis thundercloud. She includes this lovely quote from an economist:

The secret to the amazing increases in productivity in the American economy is finally out. Companies in the US are not hiring full-time workers. They are gambling that they can keep their margins high by keeping a vast part of the workforce, perhaps millions of people, unemployed.

Unemployed people, it turns out to no one’s surprise, will work for very little. And, they will work without benefits, without job security, and without complaint.....

The development is a revelation, and a good one, (Emphasis added) for companies, municipalities, and states, all of which are tight on cash and unable to get credit at reasonable rates if at all.

Read the whole thing and feel your blood start to boil.

Is our Congress killing our economy?

Atrios points out the danger of cutting off unemployment benefits.

Remembering those who were killed serving their country

Staff Sgt. Eric Shaw, 31, of Tennessee, was serving with the 327th Infantry, First Brigade Combat Team from Fort Campbell, Ky., when he was killed on Sunday by enemy gunfire in Afghanistan.

According to the Boston Globe,

Shaw’s cousin, Dan Plunkett of Milford, N.H., said he would be remembered as an outstanding father and husband.

“He was an all-around great guy,’’ Plunkett said. “He was a hero. That was Eric. He’s going to be greatly missed.’’

His wife and three young children were visiting family in Maine when they learned the news. Maine Gov. John Baldacci announced his death:

“All soldiers in combat pay a deep price for their service. For some, they make the ultimate sacrifice,’’ Baldacci said. “Staff Sergeant Shaw was a dedicated soldier with a young family. We will keep his wife and his children in our prayers. Our entire state mourns with them.’’

Why Stephanie moved her money

Stephanie Frost decided to take her money out of Bank of America. She explains in the video how the bank treated her.

Links 6/30/10

Recession Strikes Deep Into Workforce Wall Street Journal
Financial-Rules Redo Passes Major Hurdle Wall Street Journal
Administration Cannot Drop Bid for Nuclear Waste Dump in Nevada, Panel Finds New York Times
Wal-Mart Names New Head of US Operations New York Times
In U.S. Bailout of AIG, Forgiveness for Big Banks New York Times
Democrats seek to extend emergency jobless benefits Washington Post
FedEx Wins Dismissal of Some Claims in Worker Suit Bloomberg BusinessWeek

Ireland: A scary example of what fiscal austerity does to a country

A frightening portrait of Ireland after the government decided to tighten its belt, from Liz Alderman in The New York Times.

...the once thriving nation is struggling, with no sign of a rapid turnaround in sight.

Nearly two years ago, an economic collapse forced Ireland to cut public spending and raise taxes, the type of austerity measures that financial markets are now pressing on most advanced industrial nations.

“When our public finance situation blew wide open, the dominant consideration was ensuring that there was international investor confidence in Ireland so we could continue to borrow,” said Alan Barrett, chief economist at the Economic and Social Research Institute of Ireland. “A lot of the argument was, ‘Let’s get this over with quickly.’ ”

Rather than being rewarded for its actions, though, Ireland is being penalized. Its downturn has certainly been sharper than if the government had spent more to keep people working. (Emphasis added.) Lacking stimulus money, the Irish economy shrank 7.1 percent last year and remains in recession.

Joblessness in this country of 4.5 million is above 13 percent, and the ranks of the long-term unemployed — those out of work for a year or more — have more than doubled, to 5.3 percent.

Some members of Congress adopted the same argument that it's more important to pay down debt than to spend money on economic stimulus. That's why a bill to extend unemployment benefits is stalled.

Here's Sen. Bob Corker, a Tennessee Republican: "I cannot in good conscience continue voting for bills that aren’t paid for.” Tennessee's official unemployment rate is 10.4 percent.

According to the National Employment Law Project,

More than 1.2 million Americans will exhaust their unemployment benefits by the end of June if Congress fails to work out a deal on an extension of unemployment
benefits.

Scary.

Links 6/29/10

State Workers, Long Resistant, Accept Cuts in Pension Benefits Wall Street Journal
Burned Before, Railroads Take Risks Wall Street Journal
Congress fulfills narrow ambitions with financial overhaul bill Washington Post
Jobs missing, not motivation Politico
As world watches soccer's Cup, Nike critic sees red Los Angeles Times
The three biggest lies about the economy Marketwatch