Rising jobless and cost-of-living figures: stagflation on the way?

[TexasLawyer]

Rising jobless and cost-of-living figures: stagflation on the way?
By Kim Clark

Posted 8/4/06

Unemployment crept up to a seasonally adjusted 4.8 percent in July, its highest level in five months. That, combined with rising inflation, which clocked in at a 14-year-high annual rate of 4.3 percent in June, raised fears that energy prices may be slowing the economy while driving prices up--a recipe for potential stagflation.

The Department of Labor announced this morning that the economy generated 113,000 new jobs in June, which is generally considered not quite enough to absorb the 150,000 or so graduating students, immigrants, and others who join the workforce each month. As a result, the unemployment rate rose two tenths of a point. Interestingly, the service sector accounted for nearly all of the growth. It added 115,000 new jobs. The manufacturing sector lost 15,000 jobs in July. Construction, which had generated many of the new jobs over the past several years, added only 6,000 new workers.

<snip>

Investment markets rallied after the report was released this morning. Economists said that traders probably believe the softening job market will eventually cap wage inflation and that the Federal Reserve may finally take a break from its two-year interest-rate hiking pattern.

The economy hasn't sunk into true stagnation, since it is expanding by more than 2 percent annually. But Gary Schlossberg, an economist for Wells Capital Management in San Francisco, says the latest numbers show a marked downward trend that, if continued, could prove worrisome. "This shows businesses are becoming more cautious and growth is beginning to wind down," he says.

http://www.usnews.com/usnews/biztech/articles/060804/4jobs.htm

[HughBeaumont]

1. Neo-clones, I believe you were saying something funny

. . . about stressing the "strong economy" for the 2006 election?

Tell me, when has this economy EVER peaked for the middle class during Lancelot Link's reign?

[Pierzin]

2. I haven't had a decent raise in over 6 years. how about you?

Cost of gas is up, rents are up, groceries, milk, bread, all the basics are up, debts are up, while decent wages are being shipped overseas at every opportunity. I happens every time there is a Bush in the White House.

[HughBeaumont]

4. All BARELY COL raises here, even though I've been promoted once.

Looked at my salary in a CPI calculation - I've pretty much received, factoring inflation in, less than regular raises for my entire five year term, even with the promotion. Doesn't matter; I can't afford shit, I'm screwed should a major repair or emergency be needed, and there's really nothing I can do about it considering the job market is a crap sandwich where I live.

[bleedingheart]

10. same here which is why I never understood how people I knew

were "moving up" to newer and grander homes...it made no sense to me.

[last1standing]

3. You want fries with that?

Sorry, just practicing. Most of us will be saying something similar soon.

[TexasLawyer]

7. Or how about...

:D"Welcome to WalMart !!!" :D

ughh! too horrible to even contemplate!

[last1standing]

8. All I can say to that is "Death before Dishonor"!

n/t

[flamin lib]

5. Job went to China, had $30k in medical expenses and no

insurance. Now I'm one of the 2 million who declare bankruptcy every year.

Strong economy my ASS.

[AX10]

6. Stagflation is here.

[sendero]

9. I think we've had..

.. stagflation for a couple of years now. It is hidden by the overt and blatant fudging of the numbers we see, but it's there.

The pukes are going to try, try, try to keep the big "economy is going great" lie going as long as they can in hopes of being out of the barn before everyone notices the horses are gone.

[AnneD]

11. I really can't decide if we are

in stagflation now but they sure as hell are cooking the books (bogus numbers that seem to always need revisions downwards a few weeks after when there is NO media attention).
To sum the economy: good jobs are going overseas, ARM's increasing payments(most of the RE mortgages now)are forcing many into foreclosure, increased cost of living combined with decreased wages, and a tax structure that increasingly favors high income, capital gains income over wage earners.
For the first time in our history, wealth is being stratified into the upper class. And yes, it is a class warfare that is happening. The middle class is being decimated. The middle class serves as a spawning ground for new ideas and acts as a buffer and stabilizer between rich and poor. Look at countries that only have 2 tiers. Unless something is done soom....that will be the future of the USA.

[54anickel]

12. Egads!!! You mean the future of the USA might look like this?.....

[Thor_MN]

13. CNN choose to headline this as "Job growth unexpectedly slows"

Four straight months below 150K should be "Job losses continue"

From what I can see, there has been zero job growth, zero stock market growth, huge real inflation (screw your "core rate" voodoo, *) during the pretender's reign of terra. How do they get away with spinning that as a "Strong Economy"?

[rodeodance]

16. what, no rosy pic?

[applegrove]

14. Well - the middle and working class have been fighting the inflation

on their own..while the stock market roars.

What exactly do certain elites in the USA bring to the country? What is their role in democracy?

I think it is high time for national health care as a means to bond the country together. So it means something once again to be successful and wealthy ... and American. So that there is some meaning ..some taxes.. something that ties them to their greater community.

Cause if not..it will just be people who are tied to corporations. And it will not be about a country anymore.

[enigma000]

15. Still better than Europe

France, Germany, Italy, Spain shutter

Then 1970S aren't here yet.......

[ozone_man]

17. Going to be far worse.

It may look like the stagflation of the 70's, but it's not the same conditions. The FED has been pumping the last several years to keep us out of recession, but that has to come to a close finally, lest our creditors bail. Watch the inflation turn to deflation over the next several years as consumer buying power is exhausted by too much debt.