Complacency triumphs over catastrophe

The New York Times provides this report on the Fed and its plans:

And at the end of June, the Federal Reserve finished its work and rested.

The nation’s central bank said Wednesday that it would complete the planned purchase of $600 billion in Treasury securities next week as scheduled, and then suspend its three-year-old economic rescue campaign, leaving in place the aid it already is providing but doing nothing more, for now, to bolster growth.

“The economic recovery is continuing at a moderate pace, though somewhat more slowly than the committee had expected,” the Fed said in a statement. “The committee expects the pace of recovery to pick up over coming quarters and the unemployment rate to resume its gradual decline.”

Shadow States compares the official U3 and U6 unemployment rates to its adjusted rate:

Shadow Stats and Official Unemployment Rates

I think it is rather clear that the Federal Reserve Bank, the Obama administration and the current Congress have not done enough to address the employment problem in the United States. Nor, it seems, do they intend to do much about this human disaster.

Complacent and vicious — that’s the American way of government when it comes to providing for common folk.

Unemployment in Pennsylvania

The Keystone Research Center reports that:

Total nonfarm employment in Pennsylvania fell in May by just over 14,000 jobs, according to a new report from the Pennsylvania Department of Labor and Industry. This is an abrupt reversal from March when the state added 23,000 jobs and highlights that monthly state-level payroll data are volatile and should be viewed with some caution.

Taking into account May’s poor performance, the Commonwealth has added an average of just over 7,700 jobs a month since December. This remains a healthier pace of job growth than in the recovery from the 2001 recession. Still, Pennsylvania is more than 230,000 jobs short of full employment.


This is Pennsylvania’s job’s deficit:

Pennsylvania’s jobs deficit, or the difference between the number of jobs Pennsylvania has and the number it needs to regain its pre-recession employment rate, is 235,200. That number includes the 130,900 jobs Pennsylvania lost plus the 104,300 jobs it needs to keep up with the 1.8% growth in population that has occurred in the 41 months since the recession began.

Sadly, Pennsylvania’s unemployment record has been a good one during the Great Recession. Yet what comfort might the un- and under-employed gain from this knowledge? Little to no comfort, I would guess.