It’s the worst one month loss in 34 years.
The decline, the largest one-month loss since December 1974, was fresh evidence that the economic contraction accelerated in November, promising to make the current recession, already 12 months old, the longest since the Great Depression. The previous record was 16 months, in the severe recessions of the mid-1970s and early 1980s.
The alarming job decline suggests that consumers and businesses have pulled back sharply on spending in response to the worsening credit crisis. That has put pressure on Congress and the White House to come up with a stimulus package that would substitute for the missing private-sector outlays.
Over all, the losses since January now total more than 1.9 million, with most coming in the last three months.
â€œWe have gone from recession into something that looks more like collapse,â€ said Ian Shepherdson, chief domestic economist at High Frequency Economics, referring to the accelerating job losses in recent months.
And yet many are still clamoring to let the car companies fail?
Do know that I’ve heard dozens of reasons why people want these companies to fail, but I simply think they’re not considering the actual impact on the individual lives that had nothing to do with the bad decisions made by CEOs and legislators.
Simply put, a handful of companies acting irresponsibly should not send our economy into a tailspin, and just allowing that to happen because we’re “letting the market work” seems to me to be an ideologically bankrupt stance, especially when you consider how many lives will be affected.
And let’s not forget…all of these people who lost their jobs or will lose their jobs will be applying for unemployment benefits and won’t have health insurance anymore. And guess who’ll be paying for it? It makes more sense for the government to help keep these companies afloat so they can renegotiate contracts, cut costs where they need to and minimize job losses.
But hey, maybe the upside will be that the nation will clamor for universal healthcare since so many people are out of work.