Layoffs mount, economic crisis deepens in the US

Original article, by Tom Eley, via World Socialist Web Site:

Monday brought a number of fresh indications-including mass layoffs, bankruptcies and negative labor market data-that the US is entering a deep economic crisis.

Let’s see some of the bad news bringers:

DHL Express – Bankruptcy and 9500 new layoffs

Circuit City – Bankruptcy and 700 new layoffs (last week they had 7000 layoffs)

Nortel – 1300 layoffs and a salary freeze

Mattel – 1000 layoffs over the weekend

GlaxoSmithKlein – 1000 layoffs over the weekend

The financial industry as a whole: Reports of 150000 worldwide and 70000 US layoffs in the works

General Motors – 23% decline in their stock, one bank says they expect it to go to zero and suffer through bankruptcy or bankruptcy-like conditions.

In another sign of a rapidly worsening economy, the Conference Board’s monthly labor market index fell sharply. The Conference Board is a New York-based business research group. The index, which assesses eight employment-related economic indicators, has fallen 12 percent in one year. Part-time and temporary jobs have been especially hard hit over the past six months, the index reveals.

Needless to say, these are not good signs for workers. The bottom line approach of neoliberal capitalism has not served the companies well: Instead of saving for the inevitable rainy day, the money which could have helped tide them over this situation has gone out to the shareholders. I guess it’s good that the shareholders got something out of the equation.

To close out his article, Eley points out that the government, while reticent to help the workers who are being devastated by this crisis, has been more than willing to open the floodgates to save the bosses:

The federal government also announced an expanded government rescue package for the giant insurance company, American International Group, (AIG), this Monday, which will amount to a total of $150 billion, $40 billion of which will be invested directly into AIG despite the company’s disclosed losses of $24.5 billion from July through October.

According to a report by Bloomberg News, the federal government has extended over $2 trillion in emergency loans to major financial concerns in the past fifteen months and the Federal Reserve Board has thus far refused to reveal who has received the taxpayer infusions. On November 7th, Bloomberg News filed a lawsuit against the board, demanding that it release information pertaining to the recipients of the $2 trillion largesse, and also about the toxic assets which the US Government has now taken onto its books as collateral.

This is what you get from the duoparty: Layoffs and more debt. What a nice combination. Do not expect a change from our parasitic capitalist system any time soon. The banksters know that that the national Democratic Party is (except for a few brave souls) part and parcel with them. Change does not come from above is an old cliche’, but it’s one that the vast majority of Americans take to heart.

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