State and local downsizing continues. Personal income suffers. Conditions are bad and worsening.
On May 4, Pimco's Mohamed El-Erian headlined his Financial Times article "Confirmed: America's jobs crisis," saying:
"Friday's US jobs data sound a warning that should be heard well beyond economists and market watchers."
Americans with jobs have poor ones. Wage growth is stagnant. Purchasing power can't keep up with inflation. For ordinary Americans, secular income headwinds blow at gale force strength.
Crisis conditions today make "a mockery of the published unemployment rate of 8.1 per cent....The economic implications are clear." At a time, Europe's recession deepens, America's declining.
Risks are increasing. A "potential (austerity caused) year-end 'fiscal cliff' (may) suck out some 4 per cent of GDP in purchasing power, and do so in a disorderly fashion."
Instead of addressing crisis conditions responsibly, political Washington campaigns for reelection, and plans huge domestic budget cuts when stimulus help is needed.
Main Street Americans are pushed to the edge. Potential "social consequences" suggest "the possibility....of a lost generation."
Unemployed teenagers "face the risk of going from being unemployed to becoming unemployable." Today's reality is bleak. It reflects "a multi-faceted unemployment crisis that politicians, both in America and Europe, are failing to comprehend, unite around, and respond to."