As new reports released by the Labor Department show, unemployment and underemployment continue to climb, reaching 9.8% and 17% respectively. Underemployment data includes those who wish to work full-time, but are currently working part-time or have given up searching for work.
I remember back in the summer of 2008, I told some coworkers that I expected unemployment to reach about 14% and underemployment to reach over 20% before all is said and done. They laughed at me and said I had no clue what I was talking about.
I had just finished reading Crash Proof by Peter Schiff that previous winter, so the message was still pretty fresh in my mind. The more money we pump out of the private sector to spend on government projects, the less money we will have for jobs, thus higher unemployment. This is especially true right now as the government continues to spend to help curb the recession. Ironically, it’s the massive spending by government that will prolong the recession.
Peter Schiff has a new book out titled, Crash Proof 2.0. It builds on the previous Crash Proof book and explains how the “crash” that Schiff describes in the first book is no longer theoretical, but is actually happening now. I haven’t actually read the second book yet, but if I know Schiff’s thinking, it probably lays out the case that this isn’t the crash, but the precursor to a much larger crash. The collapse of the dollar.
Source: Associated Press