In The Rigged Game, I wrote that the negative impacts of each successive recession would continuously get worse for a growing number of people because of growing income and wealth inequality, and a new study by the Economic Policy Institute (EPI) shows this is the case.
Also note that the policies espoused by both Hillary and Bill Clinton brought this situation about. These policies include international income and political power redistribution scams they marketed as free trade agreements, such as NAFTA, giving China most favored nation status, and the South Korea, Panama and Colombia free trade agreements. These scams redistributed trillions of dollars from working Americans to rich fat cats as tens of millions of jobs were shipped overseas.
Now there is an approaching economic storm that will strike sometime between October 2016 and June 2017. The economic impacts of the coming recession will be worse than the last recession.
Some of the findings by EPI include:
- Unemployment and underemployment rates among young graduates have improved but remain higher than before the recession began.
- Unemployment of young graduates remains elevated today, but not because of something unique about the Great Recession and its aftermath that has affected young people in particular. Rather, it is high because young workers always experience disproportionate increases in unemployment during periods of labor market weakness—and the Great Recession and its aftermath is the longest, most severe period of economic weakness in more than seven decades (Italics mine).
- The vast majority (65.8 percent) of people age 24–29 do not have a college degree. Access to good jobs for these individuals is especially critical, as stable employment allows them to build a career or pay for further schooling.
- In addition to the unemployed (jobless workers who report that they are actively seeking work), the underemployment rate also includes those who work part time but want full-time work (“involuntary” part-timers), and those who want a job and have looked for work in the last year but have given up actively seeking work in the last four weeks (“marginally attached” workers).
- For young college graduates, the unemployment rate is currently 5.6 percent (compared with 5.5 percent in 2007), and the underemployment rate is 12.6 percent (compared with 9.6 percent in 2007).
- For young high school graduates, the unemployment rate is 17.9 percent (compared with 15.9 percent in 2007), and the underemployment rate is 33.7 percent (compared with 26.8 percent in 2007).
Now we are hurtling into the worse recession since the Great Depression, and the results of the following boom period will be more egregious than the pathetically weak economic expansion after the Great Recession, which lasted from 2009 to late 2016 or early 2017. Income inequality is the big culprit in this explosion of poverty in the midst of plenty because your government actively works to redistribute income from the 99 to the 1 percent via such things as trade agreements, which are really income redistribution agreements.
Click on the following link for the complete EPI study.
for more on the EPI study.