Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and columnist. Red Alert subscriptions are $99 a year or $9.95 per month for credit card users. Annual subscribers will receive a free autographed copy of “The Late Great USA,” a book about the careful deceptions of a powerful elite who want to undermine our nation’s sovereignty.
Despite Obama administration hype that the U.S. economy is in “recovery,” U.S. Department of Labor studies show the continued high level of unemployment will cause 40 state programs to go broke within two years, requiring $90 billion in federal loans to keep writing unemployment insurance checks, Jerome Corsi’s Red Alert reports.
Currently, 25 states that have run out of unemployment money have been forced to borrow $24 billion from the federal government to cover the gaps.
Lost in the Obama administration’s touting that unemployment had dropped to 10 percent in November, down from 10.2 percent in October, is the growing crisis in long-term unemployment defined as those out of work for six months or longer, Red Alert reports.
Corsi explained that the long-term jobless now account for 38.2 percent of the unemployed. If the long-term unemployed remain without a job, the Bureau of Labor Statistics simply drops them from the unemployment count altogether, assuming they are unemployed so long that they have effectively dropped out of the labor force.
Red Alert has reported that despite an official unemployment rate of 27 percent, the real unemployment rate in Detroit is closer to 50 percent, after taking into account those who have given up finding a job and those working fewer hours than they want, according to Detroit Mayor Dave Bing.
Red Alert reported in November that Detroit has become an inner city “dead zone” of Democratic voting.
A permanent underclass
Corsi expressed concern that states increasingly will be burdened with a permanent underclass of unemployable workers that face no alternative but to live permanently on government-funded welfare.
In 1984, political scientist Charles Murray published “Losing Ground,” a book sharply critical of Lyndon Johnson’s War on Poverty that argued the U.S. should scrap all social welfare programs.
Murray argued social welfare programs by their very nature created a “poverty culture,” especially in African-American families, where the welfare state was actually encouraging the breakup of families by implementing qualifying rules detrimental to family development.
Murray took the opposite approach, arguing that all federal entitlement “transfer programs” to the poor should be terminated for working-aged people immediately, including Medicare, food stamps, unemployment insurance, workers compensation, subsidized housing and disability insurance.
“Murray argued this not from a lack of sympathy with the poor, but from an intellectual conviction that the only way to solve poverty was to leave the poor with no recourse except for the job market, family members and friends, as well as charity and whatever aid for the poor our unemployed the states decided to provide,” Corsi wrote.
He continued, “We are convinced it is time to consider abandoning altogether the very entitlement programs the Obama administration is determined to expand before cities like Detroit become the harbinger for what all U.S. inner cities may look like in one generation from now.”
Globalists admit U.S. workers are suffering
A Council of Foreign Relations Foreign Affairs magazine article was published in the July/August 2007 issue by Kenneth F. Scheve, a political science professor at Yale University, and Matthew J. Slaughter, an economics professor at the Tuck School of Business at Dartmouth and a senior fellow for business and globalization at the Council on Foreign Relations.
Scheve and Slaughter argued that as a result of globalization, income in the U.S. has become “extremely skewed.” Incomes for most workers have stagnated, or in many cases fallen, they argued.
The numbers are “stark,” Scheve and Slaughter admitted. Less than 4 percent of workers were in educational groups that enjoyed increased real money earnings from 2000 to 2005. Only workers with doctorates and professional graduate degree saw increases in real money earnings, while the earnings of all other classes of workers fell.
When the earnings were put in “real dollars,” a standard that was designed to factor out inflation, globalization has caused the vast majority of U.S. workers, some 96.6 percent, to see their earnings fall between 2000 and 2005.
The only workers to experience income gains under globalism were at the very top, those with doctorates or top professional degrees, including law degrees and business school degrees.
Ironically, these highly educated workers were also likely to be the most successful competitors for jobs managing or advising multinational corporations outsourcing jobs to foreign workers.
The authors found a rising number of Americans are asking themselves, “Is globalism good for me?”
“Increasingly, the conclusion is that it’s not,” Corsi wrote.
Red Alert’s author, whose books “The Obama Nation” and “Unfit for Command” have topped the New York Times best-sellers list, received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.
In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.
For financial guidance during difficult times, read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.”