I would argue that people like us have not only not suffered much, we’ve prospered. Personally we’ve relocated to a better paying job with better benefits (the recession exposed some problems in the previous job), we’ve bought a bigger home (for a really good price), bought some previously more expensive items at a discount cause we had cash (furniture, appliances) and have made quite a bit in the stock market by be able to predict some recession cycles and spot lows. I’d say a lot of white collar people have taken advantage of one or more opportunities I’ve listed above.

But that doesn’t mean we’re the most important segment of the society. We’re all in this together – we can’t be “rich” unless someone else is “poor” – it’s all relative. The important thing is we’ve got to structure the economy so it works for the majority of the citizens.

In another vein of “we’re all in this together” KC, I’m not looking forward to the societal repercussions if so many people have the rug pulled out from under them if the unemployment payments are stopped.

There are six applicants for every job opening in the state where I live. There are going to be a lot more people getting on welfare assistance and section 8 housing, more homeless people, more desperate people, and possibly more people turning to theft to get income. It’s going to put a strain on other state and local resources such as welfare, WIC, medicaid, homeless shelters and the police department.

This recession has already created some “bad” neighborhoods in places where there are several foreclosures on a block, boarded up, sprayed with graffiti and tags, being broken into and used by squatters, drug dealers or gangs. Nobody wants to move to a neighborhood with some gang signs spray painted on the boarded up house down the street. So that neighborhood basically is given up on. It starts to add up to a lot of neighborhoods, and whole communities. Anybody still living there can’t get out; nobody wants to buy their house.

I think your powers of perception and deduction are somewhat limited. You are trying to understand a river by looking at a raindrop. If our economy is the method by which we trade goods and services and we all use goods and services, then anything that effects the economy, by definition affects us all.

Like a garden in a drought, all the plants don’t die at once, the weaker and the more water sensitive die first, the tougher drought resistant plants live longer but don’t thrive, even the trees with their deep and widespread root structures will eventually die without water.

In a depression which is what we are quickly becoming, those who made bad choices, false assumptions, were unlucky or just damned by the fates, fall first. As the economic collapse continues more will find themselves participating in the depression/recession/crisis despite the color of their collar or their education level. We are nearing 20 percent unemployment using U6 as a measure, when one in 5 people are out of work and the housing bubble is still collapsing, then soon the tide will wash over us all.

Your observations have been long known and usually stated as: ” a recession is when my neighbor is out of a job, a depression is when I’m out of a job”.

If I might, I’d like to suggest that the following graphic shows the true gravity of our transit across the economic time domain. Its an interactive progression of the job losses, showing unemployment by county since 2007 on a nationwide map. Its truly frightening to see what our news media tries so hard to bury. If you think trends are important, I’d like to get your opinion on what this one means.

http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html

Just press the arrow on the map and watch the tragedy of our times unfold.

Frank, always great to hear from you. I’m with you in thinking that this recession may not be different than any other. Most of us have just never seen how great the divide is between races and education levels.

Great post Weakonomist.

My opinion is, this isn’t just a blue-collar recession, it’s a permanent shift in our economy. And, many of the blue-collar jobs that have been lost will never return. I’m not a doomsday prophet and I do think our economy is starting recover. Unfortunately, it’s going to recover much better in Silicon Valley and on Wall Street, than it is in Ohio and Michigan.

The reasons are very simple and obvious (to everyone but our Government).

First, globalization has already occurred and this is a big problem for America. You can’t manufacture $3 Black Friday kitchen appliances in Ohio, but you can make them in China. I used to work in Technical Support, but now those job are in India.

Second, unions, labor and the government are all going to have to get real, if we are going to save any manufacturing jobs. The 1950s are over and so are pensions, triple-time, strikes and costly regulations. GM and Chrysler need to figure this out before everyone is driving a Hyundai. (BTW, I drive American cars and I used to work union.)

Third, we are switching to a knowledge economy, which provides great opportunities for Accountants and Engineers, but not for factory workers and general laborers. And, this leaves out a big part of the American population, who is not well educated.

Long story short, the divide between the haves and the have-nots will continue to grow. And, the people who are unskilled and uneducated will be stuck with McJobs. This is unfortunate, but it is the new reality of the American dream.
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