Rich Get Richer Because Poor Get Poorer

• Americans have bought the line that there are no class distinctions in this country, but as the aftermath of the great financial crisis of 2008 plays out, it has become clear that, in the memorable words of Warren Buffet, “There is class warfare, all right... but it is the rich class that's making war, and we're winning.”
• The jobs emergency

Zelig Stern, Socialist WebZine

It is likely no surprise to most Americans that the unemployment report for July released by the Bureau of Labor Statistics indicated no improvement for the job situation. With the number of unemployed and underemployed workers remaining high at 16.5%, most people have at least one friend or family member in this category. What may come as a surprise is that while workers are subjected to chronic unemployment and underemployment, corporate profits have been recovering substantially and the ultra rich (those with over a million dollars in investible assets) have more than recovered their losses from the economic crisis. Americans have bought the line that there are no class distinctions in this country, but as the aftermath of the great financial crisis of 2008 plays out, it has become clear that, in the memorable words of Warren Buffet, “There is class warfare, all right... but it is the rich class that's making war, and we're winning.”

While the official unemployment rate remained stagnant at 9.5%, this statistic significantly underestimates the burden of unemployment on working people. First, it should be noted that it excludes both underemployed workers (workers employed part time who wish to be employed full time) and workers who have become discouraged and have stopped looking for work. When these groups are included, the unemployment rate rises to 16.5%. But even this number falls short of capturing the crisis of unemployment this country faces. Of the 14.6 million officially unemployed workers, 6.6 million or 44.9% have been unemployed for over 27 weeks. It is safe to assume that the 1.6 million discouraged workers also fit into this long-term unemployed category. This means that not only are a growing number of workers losing their jobs, but once someone loses their job, they have increasingly low prospects of finding another.

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Related:

The jobs emergency, Robert Reich, Robert Reich

• Twelve thousand new jobs in July -- when 125,000 are needed monthly just to keep up with population growth, when more than 15 million Americans are out of work, and when more than a half-million more state and local jobs are on the chopping block.
• Predictably, Washington's latest rescue effort falls woefully short
• U.S. Experiencing Worst Episode of Prolonged Unemployment Since Great Depression
• An aid package to the states to prevent layoffs was funded by cutting the federal food stamp program.