COVINGTON, Ind. —
Have you noticed the length of unemployment cycles is increasing?
In 1957, a major job loss of 4.4 percent recovered in only 24 months and the 1981 drop of 3.0 percent recovered in 27 months. Since then, a modest drop in employment of 1.5 percent in 1990 and in 2001 required 31 months and 45 months, respectively, before full employment returned. The current cycle started 63 months ago and only 2.3 percent of the 5.4 percent drop has been recovered.
One might speculate the longer unemployment cycles are caused by loss of our manufacturing base or a new willingness of the unemployed to remain unemployed; equally important reasons began after World War II.
World War II encouraged women to enter the work force and created a baby boom, surprisingly not mutually exclusive events. America’s economy has been feeding off these two events since.
In 1948, there were only 27 percent women in the work force, but by 1990, 45 percent of our workers were women. Clearly, replacing one family worker with two boosted the economic growth rate. This economic “booster” ended in 1990 with little change in percent women in the workplace since.
The same may be said of baby boomers, perhaps the greatest bunch of consumers known to mankind. This economic growth “booster” is about to become a Social Security and Medicare “buster.”
The current economic growth rate, like 1933-1940, is so small that, without deficit spending, it would be negative.
Are unemployment cycles, loss of post war stimuli and low economic growth suggesting a forthcoming return to the Depression?
COVINGTON, Ind. —
- Letters to the Editor
- Parking woes at civic center Editor:I enjoy going to the David S. Palmer Civic Center and really enjoy the Dashers games and I’m looking forward to the Riverhawks basketball team.Last fall, the city removed the three handicapped parking spaces on the south side of the center. I
- Looking forward to bright futures Editor:For the past few weeks I read the great accomplishments of valedictorians from Paxton, Danville, Urbana and Champaign.As a retired science teacher and businessman, I am proud of their achievements and the parents and teachers who contributed t
- Workcamp organizers say thanks Wow! When we first considered bringing Group Workcamps to Danville, we did not hesitate because we know how Danville responds to events that are important to the community ... and boy, did you respond!The first day, we provided the campers with goodi
- Dump Durbin in 2014 Dump Durbin in 2014Editor:Dr. Natalie J. Goldring, of Georgetown University, on June 25, told lobbyists concerned with the U.N. Arms Trade Treaty issue the National Rifle Association (NRA) and others have spread lies about the effect of the treaty on
- Take a stand against violence Take a stand against violenceEditor:My son Kevin A. Jackson was killed three years ago on Valentine’s Day. He would have been 20 on July 22.I have to be part of the solution and no longer part of the problem. Danville, it’s time for us to take a stan
- Hearts & darts Here are some of the good things readers noticed around the area recently:• Missy Parson, Hope Garrett and Barbara Wright, event coordinators for for Relay for Life of Vermilion County, send hearts “to all who participated in the Relay for Life 2014
- No help for working poor Editor:Whatever happened to the old rule that so long as a person was paying on a bill, service of utilities couldn’t be cut off? For 18 years I have had a perfect payment record. I now have nothing, am paying every penny I do earn at three intermitt
- Hearts & darts Here are some of the good things readers noticed around the area recently:Suse Townsley, of Danville, sends hearts to the staff at Presence United Samaritans Medical Center. “I was taken to the hospital on June 22 through June 24 and stayed in the ne
Church cancels popular event
Church cancels popular eventAfter 22 years of hosting the popular St. Anthony’s Salad Luncheon, the ladies of the church group have reluctantly been forced to cancel this year’s luncheon because the Vermilion County Health Department insists all dona
- Submit Your Letter!
- More Letters to the Editor Headlines