The “good” news in today’s unemployment report was that the number of “continuing claims” dropped. The bad news is that the reason this number dropped because so many people’s unemployment benefits are running out.
In the coming months you will hear more and more “good” news like this – and it will be sold as good news. But this number really means more and more people are getting into ever worse conditions because the economy is not providing jobs and the government is no longer helping. After all, regular people are not “too big to fail.”
Mish’s Global Economic Trend Analysis: Continuing Claims Drop First Time In 21 Weeks. Is This Worth Getting Excited Over?
. . . Government figures, in fact, show the proportion of recipients who used up their jobless benefits in May topped 49 percent, a monthly record.
[. . .] The drop in continuing claims means more home foreclosures and credit card defaults are coming because 49% of those who were receiving benefits now have no money coming in at all.
Yes,more people using up their unemployment benefits means more people who can’t pay their mortgages, rent, car payments, credit card bills, or go shopping, etc. On top of this several states are running out of money and will start laying people off.
But the “recession” is over, right? I don’t think so. I think we have to go through some hard times to break the “stock market always goes up” kind of thinking that is keeping people from finding real solutions to real problems.