Tuesday, November 20, 2012

Current Cases of Unemployment

Immigration

The immediate primary cause of unemployment of U.S. citizens is legal and illegal immigration. We have 12 million illegal immigrants in the U.S. and we add 125,000 legal immigrants per month.  We have 150,000 U.S. citizen new entrants to the labor market per year with very high unemployment and underemployment in the U.S. citizen new entrant category. 
If we didn’t have 12 million illegal immigrants and stopped adding new legal immigrants each month, our unemployment would suddenly drop to under 3%.
It is within government’s power to do this immediately and the fact that it has increased legal immigration rather than reduce it, is hard to understand. It’s almost as if the federal government wants the U.S. to have high unemployment.  
In the 1930s, during the 1st Great Depression the U.S. shut down legal immigration to zero.  At the time, immigration was managed by countries based on their need to increase their populations based on their demand for labor.  Earlier in U.S. history, immigrants were welcomed to advance settling the rest of the country as we moved West.

Contributing Causes of Unemployment
Other earlier events have hurt the U.S. economy and certainly have had a negative impact on our current unemployment conditions

Mortgage Securities Fraud
The global economic Meltdown of 2008 was created by government social engineering policies encouraging home ownership by non-credit-worthy individuals.  These loans were destined to fail, so mortgage lenders bundled the bad mortgages into securities and sold them as AAA investments.  The trillions of dollars lost in this scam did permanent damage to all countries.

Off-shoring for Cheaper Labor
Beginning in the 1970s U.S. companies began to close its U.S. manufacturing operations and move them overseas.  For large, older companies, it was in reaction to the unsustainable future costs associated with their Defined Benefit Pension Plans, unions, increasingly costly health insurance, U.S. government regulatory overreach and access to overseas markets.  The introduction of the PC in the 1980s boosted the economy as did earlier breakthroughs in our history like Henry Ford’s impact on automobiles and oil demand.  Even this surge in electronics manufacturing was largely off-shored by 2000.

Government Spending & Regulation
U.S. government spending and regulation have been enough to chase jobs out of the U.S.  This spending was covered by printing U.S. dollars.  The Federal Reserve increased the money supply 300% and is going higher at the rate of $40 billion a month.  This will probably cause inflation to rise in 2013 to 10%.  That means more layoffs and higher unemployment in 2013 and beyond.

Some Good News
Recent oil and natural gas discoveries, together with new fracking technologies will allow increased production export of U.S. energy, which will help local economies associated with these industries.    

Norb Leahy, Dunwoody Ga Tea Party Leader

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