No Recovery

Without Jobs

To the Editor:

Do people really think a jobless recovery is possible?

Our unemployment is at 9.5 percent, the highest in 30 years and continuing to grow monthly. What will our unemployment rate be after the GM’s bankruptcy has played out? Will unemployment climb to 12 percent by December?

Do you realize that our unemployment rate is concentrated mainly in the private sector? While most town, state, and federal government workers are immune. In fact many are still getting pay raises. That is what you should be angry about because our elected leaders refuse to manage better.

Contrary to the media hype about recovery, the growing number of total unemployment is the real leading indicator of how much worse things will become.

The stock market may rally based on happy talk, but a growing mountain of people without jobs will eventually return most to reality. A million more unemployed every three months cannot be ignored for long. When this mountain numbers 15 million who are not able to pay their bills, pay their mortgages, no buy “stuff,” do you think our situation will be better or worse? What happens when unemployment benefits run out?

So far our town, state, and federal government workers are immune from this depression. Do you think this is fair? Why should we pay higher taxes because our elected leaders refuse to manage better?

Our state deficit will grow to an estimated $6 billion next year. Yet our legislature sees no need to cut employees or spending, only increase taxes.

Nationally 12 percent of people are underwater on their mortgages. This number will certainly grow as our national unemployment rate grows from 9.5 percent to over 12 percent. Subprime mortgages that are more than 60 days late now number over 30 percent, even previously good mortgages are now viewed as in trouble with our rising unemployment. This can only drive house prices lower. Yet our politicians act like they have a mouth full of candy.

Simply, Obama is acting irresponsibly to get us out of our financial crisis and excessive debt. Growing debt four times larger to over some $8 trillion over the next four years is not an answer. This quadrupling of debt and printing worthless money will sink both our dollar and cause interest rates and inflation to rise. Every homeowner and CEO knows when you cannot service your debt you are finished.

Within four years our national debt to GDP will be near 100 percent, we will not be able to service our debt, and lose our AAA credit. That means no person or country will rush to invest in the United States. Is this the change Obama voters had in mind?

For the first time in decades the Fed is forced to buy Treasurys, forcing interest rates up. How will anyone be able to refinance to lower their mortgage payments with rising interest rates? When Cap and Trade causes energy costs to increase 50 percent or more, who can afford to live any more let alone pay those bills?

Dan Kormanik

85 Great Ring Road, Sandy Hook                                      July 8, 2009