Unemployment is climbing and is rather bound to get worse. The 2 huge banking bailouts followed by the “Main Street” relief aimed at troubled mortgages will not solve the problem. By bailing out the banking industry, that had become a bit of a ponzi scheme attempting to leverage itself to heaven, the gold bricks have been left in place. The rescue of Ma and Pa Mortgages is well and good, but the future payments are still going to be a problem.

Creating jobs is well and good, but if they are not there in the future, there is a problem to be faced now. We must focus on what is true and tangible. Food on the table requires housing and that requires a fairer deal for all.

Economists that advise Governments (Greenspan,etc) fear inflation far more than unemployment as economies can recover from unemployment. But tell that to the person unemployed who is losing everything! The problem with inflationary measures (the rescue package for the economy as well as two for the banking industry) inflate the economy meaning the jobs so created are irrational (not caused by natural demand).

While Americans may try and blame their president for the consequences, it is what Americans do that will affect long term employment. The answer is simple – get the market rolling by intervention – stimulate demand. That is what Obama did – and it seems to have reverted the overall decline, but for the economy to flow through needs an economic equation – people working in needed activities and growth. Why do our economics direct resources into failure?

Is the government doing any good, or are they also part of the great illusion we once called “wealth creation”.

For there to be “wealth creation” or “job creation” there has to be a service or function that the market fails to selected as required, or it would be there.

The entire logic of market driven economics has given everyone in the world more than one cell phone. When there are still 1 billion hungry children – the average teenage American has to check in with Mom on Cell #2, while conducting illicit business on Cell #1? What is our economy creating?

What are we doing? Making a world where being two faced is normal? What happened to “family values” and “respect” being high on the agenda? Where does this infestation of greed we mistake for market demand spring from?

It is our natural urge to compete – to be the winner in anything we try. Harnessing that is the aim of the market. But economics dictate that we manufacture using the economics-of-scale – we make millions of useless bits of plastic outsourcing slave labour where-ever we can find it for customers who we think we can convince have a need for our market researched desired bits?

If what we manufacture has no inherent value, then the whole equation is false.

There is a fundamental market correction that has not happened yet. The end of the era of investment in parts of the economic cycle to the exclusion of all other parts. A return to value as it is necessary or people do not eat.

See also: Business Insider