Video of the day: The 99ers

We wrote a while back about how inflationary monetary policies that drive debt creation and deplete real savings in the economy ultimately lead to one economic reality: a drastic cutback in consumption to pay for the excesses of the past. [see Killing the saving goose that lays the golden consumption egg, where specific reference was made to the US economy]

We came across this CBS ‘60 minutes’ 13 minute documentary profiling the 99ers in California, unemployed folk in the US that have been unemployed for over 99 weeks.  99 weeks is the cut off point at which unemployed people no longer receive government unemployment benefits.

While the focus remains on the headline unemployment rate of roughly 9% in the US, counting people who have stopped looking for work altogether, or those who are working part-time jobs when they’d choose to work full-time jobs, the unemployment rate is just north of 17%.

It really is shocking to say the least to see 50 year old college graduates with masters degrees forced to live in friends’ attics as they’ve lost their jobs and homes, with no prospect of finding another lower grade job after 100+ applications over two years, and spent their life savings and retirement monies to stay afloat.

As we have argued many times, there is only one way for this problem to be solved, and it is for government to get out of the way of the economy, to deregulate and let the private sector restructure an economy that is terminally ill.  Printing more money and running bigger budget deficits will only make this problem much worse.  It is wiping out the middle class in the US, just as it did in the Weimar Republic and in Zimbabwe more recently.  Heavens help us when the 99ers and their friends and family figure out what the Fed is purposefully doing to the dollar and whatever little amounts of savings may still be stashed away by them for a rainy day.

[HA note: If you're in South Africa and subjected to our monopolised broadband industry, the download may take a while, but it is worth the watch.]

Comments are closed.