Treasury Secretary Geithner: Hard times for some time to come. Is he right?
FROM CNN's Jack Cafferty:
The secretary of the Treasury has an ominous warning for the American people: It's going to take awhile for this economic recovery to feel like a recovery, and for a lot of people, it's going to be "harder than anything they've experienced in their lifetime - for some time to come."
[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2011/images/07/11/art.geithner.jpg caption="Treasury Secretary Timothy Geithner."]
Timothy Geithner made those comments Sunday on NBC's "Meet the Press," in the wake of an outright ugly jobs report for June. The U.S. economy added just 18,000 jobs last month - just dismal - and the unemployment rate went up to 9.2%.
Not very encouraging, especially if you're one of the more than 14 million Americans who are jobless in this country right now. Millions of jobs don't exist here anymore. They've been shipped overseas where labor costs are much less, meaning corporate profits are much higher. But what about the country?
There are 4.6 unemployed Americans for every job opening out there, according to the Labor Department. In some states, it's much worse. In Arizona, for example, there are 10 job seekers for every opening.
What's more, nearly 20% of personal income in the United States is now provided by the government - in the form of jobless benefits, Social Security, food stamps and other programs.
The Great Recession officially ended in June 2009, but many Americans haven't gotten back on their feet. They can't find work. Job growth has been slower since then than after any recession since the Great Depression. And for a lot of average Americans times are tough.
Interested to know which ones made it on air?
Cheryl in Bluffton, South Carolina:
He's right, Jack. American corporations are sitting on $2 trillion in profits they made from laying people off and sending jobs overseas. Unless you are a CEO or major stockholder, you're either doing the work of three people or you're unemployed. Hard times, indeed.
Pete:
Even a broken clock is right twice a day. Finally, it's Geithner's turn. Actually, it's a very disingenuous forecast by Geithner, given that he and his peers like those in the financial sector and on Wall Street have done VERY well the last two years, and will continue to do so. 80% or more of our citizens are barely treading water or have already drowned, but as long as the wealthy and the special interests are still safe in their yachts, who cares?
John in Lake Charles, Louisiana:
He's right and it's going to get a hell of a lot worse if the Republicans let this country default just to help their rich friends get richer.
Carol in Northampton, Massachusetts:
Yes. The economy has changed. It's not a recession like others of the past. Many jobs eliminated will never exist again in the U.S. So, yes. It will take a long time for the skill sets to match the new economic reality.
Jayne:
Of course he's right. No one mentions our lousy trade agreements and, until they are revised or revoked, jobs will continue to be outsourced by American companies. Why pay an American worker a living wage when you aren't penalized for having work done for pennies by foreign "employees?" It's not just manufacturing, either. Your taxes might be done in India next to the office of the radiologist who reads your x-ray, and you never know.
Remo Pflugerville, Texas:
Treasury Secretary Geithner is hardly credible. None of his policies have worked. So why would I believe him now?
@jackcafferty on Twitter
Jack,
It means that the lower and middle classes will continue to suffer so the wealthiest two percent and large corporations can continue to enjoy their republican-guaranteed tax breaks.
Jim
Reno, Nevada
Jack: The economic depression of 2008-2009 was stopped by the actions of President Obama and Congress took with TARP and the $ 800 billion Stimulus Program. The deep recession is over, but the hangover is not. We can expect high unemployment rate until well in 2014. This is what Secretary Geithner meant by hard times. It is time business and industry stopped sitting on their piles of cash and started to hire Americans for the jobs that need to be accomplished.
It means that he doesn't have a clue about what to do, since it doesn't involve him making lots of money for his former firm, Goldman Sachs. The biggest drag on our economy has been the shift from an investment based culture in our banking industry to a speculative based culture, typified by Goldman Sachs. The back to back debacles that hit our economy, the dot-com boom/bust and the mortgage crisis, were both speculative bubbles fueled by an ungodly alliance between Congress, the investment community and the White House, hamstringing the regulators who could have prevented both. Geithner is an industry hack who never should have been named Treasury Secretary and has proven his incompetence by his statement.
In a nutshell, Geithner is an industry hack who never should have been named Treasury Secretary and has proven his incompetence by his statement.
What it mean to me Jack is that our government does not have a clue as to how to stimulate our economy. They quietly stand by and hope for the best that free trade in America has to offer. unfortunately a lot of that free trade has already left the United States and is never coming back. Why would a company come to America with high taxation, a government that has to borrow money just to stay open and all the regulations that it imposes on business? The answer is that they will go elsewhere and hire people for a lot less money that are more then happy to work along with open arms from other governments rolling out the red carpet for them to relocate there.
Geithner.
Is there a more clueless cabinet member out there, anywhere................ever ??
Why would ANYONE care or ever listen to ANYTHING this guy talks about ???
It means, Jack, that despite all those advanced degrees floating around D.C., and all that concentrated brain power the people there have no more of a clue than I do. Political policy and economic models show only one thing, these dumb asses don't know what they are doing and could care less about the American people. They only want to rule by idiotology.
does he really know the price of bread? has he wandered the streets with family looking for the safest place to spend the night.
how will he know that hard times will continue a while longer, if he has not know what a hard time is, if he does not what fear of future life will bring
tell him to go back to his office work hard go home have a good shot of 25 year scotch and look around his home and family and then smile and think are the hard times still lasting a while longer/
It means Jack that the man is clueless and has absolutely no idea why the country is in the mess its in.We are where we are from 60 yeras of selfish self serving politicians that made decisions based on getting re elected not on THEIR country.So here we are deep in debt in a mess and if you think Geithner has the answer,well Jack we really are at the cliff.A COMPLETE ABUSE AND MIS-USE OF THE PEOPLE'S MONEY
""THAT IS "" WHY WE ARE AT THIS POINT,PERIOD.
David
he is right if GOP thugs do not compromise....they are playing drama to cut medicare, and social security....once they cut, people know real GOP thugs....they get driven out in 2012......
He's right, Jack. American corporations are sitting on $2 trillion in profits they made from laying people off and sending jobs overseas. Unless you are a CEO or major stockholder, you're either doing the work of 3 people or you're unemployed. Hard times, indeed.
it means the ones who got a bailout are gonna be more abusive towards u.s. citizen trying to get a small business loan with no asset to start a modern advanced company, probably to the demise of u.s. advancement, what with all the venture capitalist and multi nationals theiving the advanced discoveries that would get us off fossil fuel cancer causing concepts and away from wall st shareholders still getting a tax break while local working family is forced to pay the tax base cuz the 2 party monopoly doesnt want the bourgosies and vanity plated shareholder welfare constituents to pay proper share in taxes stolen from out hard working efforts undermined by the special interests
Of course he's right. No one mentions our lousy trade agreements and until they are revised or revoked, jobs will continue to be outsourced by American companies. Why pay an American worker a living wage when you aren't penalized for having work done for pennies by foreign "employees?" It's not just manufacturing, either. Your taxes might be done in India next to the office of the radiologist who reads your x-ray . . . and you never know.
Honestly, just look at what the Republicans #1 goal is, and you can see the answer. They want to make sure Obama serves just one term. They have done everything within their power over the last 2.5 years to destroy this country and turn the voters against Democrats, to achieve this goal. When do we call it like it is – terrorism?
Jack, it will continue as long as the Administration has its head in the sand. They need to do 3 things to get the ecomomy moving.
-Bring the $2 trillion held overseas by corporations back to the US by reducing the tax to 15%
– Announce offshore drilling to begin again in the Gulf, off both coasts and in Alaska. This will generate 1 million new jobs
– Put a halt to any new EPA rules and regulations.
Anything less will continue this downward fall
Vince Cami
Duluth Ga
Duh! It is simple math, Jack! 8,000,000 jobs were lost in the Bush recession. Only 2,000,000 jobs have been regained so far. That still leaves 6,000,000 Americans who no longer have a paycheck which limits consumer demand and tax revenue. Which doesn't even consider the 100,000 new workers that are added to the potential workforce each month.
Well, we have a problem with the "do nothing" GOP stance, which is reminiscent of Hoover and his "do nothing" cohorts during the Great Depression. If they choose to keep "doing nothing" it would help a lot if they would just get out of the way so people could get something done. They might even pick up a history book in their off time and find out that "doing nothing" didn't work in by gone days and won't work now. We need aggressive, progressive, action and we need it now. Obama, like FDR, was left with a mess but FDR and progressive liberals hung in there and raised us out of the muck.
Geither is correct...and he is about to jump off the Titanic as well. The economic team all jumped sometime ago, and it's his turn.
They should of never been hired, and they should all be sent back to economics 101 classes to live with the damage they have caused, inc Obama.
Stupid does as stupid is.
Joan
Wi
Treasury Secretary Geithner says hard times will continue for some time to come. Is he right?
Of course he is Jack.
The GOP ran up the USA Credit Card under Reagan, GHW Bush and GW Bush – now that the payment is DUE under Obama THEY DON'T WANT TO PAY THE BILL.
Had we followed what Clinton put in place and Al Gore put in office as he was elected to do then our deficit would have been paid off by 2010. As a side note I bet that "Social Security LOCK BOX" that Gore was going to put in place once in office and the GOP made fun of looks pretty good to most Americans right now.
Until the GOP stops all this sore loser nonsense and really work with Obama and the Democrats the nation will feel a lot of pain.
Jenna
Roseville CA
Unfortunately, he's right. As Obama has said, the Republican policies have dug a very deep hole for us in the previous Administration, and in the first 2 years of Obama's term, Republicans in the Senate have used the threat of filibuster to prevent any attempts to dig us out.
After the November elections, it's mostly been the House Republicans who have been refusing to allow anything that might help the economy to go through.
It's more important for them to carry out Sen. Mitch McConnell's orders to make Obama a one term President than to fix the economy and help the American people.
I don't believe a word that comes out of that man mouth, he has lied about the Aug. 2nd end of world scare tactic on debt ceiling. Obama's choice to have him around. We have no chance with him. He's a liar plane and simple.
Yes. The economy has changed. It's not a recession like others of the past. Many jobs eliminated will never exist again in the U.S. So, yes. It will take a long time for the skill sets to match the new economic reality.
Carol in Northampton, MA
Jack,
Mr. Geithner most likely is right!! The other day I noticed a can of shaving creme was made in China. Most products used by Americans are now produced in China & Vietnam. The U.S. continues to ignore the importance of manufacturing type jobs in the U.S. economy. There just is not enough jobs for Americans. Geithhner knows the future will be the same. That is, more U.S. jobs will be relocated to Vietnam and China. Vietnam and China,two communist countries that are now U.S. trading partners. Geithhner needs to be a crusader for bringing back manufacturing jobs to the U.S.
Well Jack, let's see. We have a congress with the lowest approval rating in my lifetime who worry more about being reelected then what's good for the country, a president who needs to stop trying to please everyone, a country at war with anyone who wants one, and no light at the end of any tunnel to stop the economic bleeding. So I guess Mr. Geithner isn't psychic after all.
David, Las Vegas
He is, since he is the gatekeeper to any solution that involves using the TARP authority to sell Freddie and Fannie to the Federal Reserve so that they can instruct servicers to write down principal balances to market value – thus ending the housing crisis.
Of course he is right, unless, of course, you are in the top 10%.
Treasury Secretary Geithner is hardly credible. None of his policies have worked. So why would I believe him now?
I think he is definitely right. In order for things to change you need to have people to retained their faith that things will get better. How can anyone regained their faith when Congress continues to play chicken with our economy? I don't care who is president no one can lead us out of this mess when all Congress does is play politics with our lives.
Absolutely!Untill Cafta and Nafta are repealed and our jobs that have been sent to slave labor camps around the world are brought back here ,we will continue to flounder.
Elite power brokers In this country have raped the american public for decades in the name of Conservatism.they have put bought and paid for stooges in congress to buy their way .
I am not a communist!I am a working man who along with the rest of the working class is sick of being screwed by politicians on both sides of the aisle .
This crap happened once before here in the 1700's .It can Happen again.
For Wall street? No. But, for the rest of us – yes. Then again, this information is more "history" than "news".
Jack, as long as speaker Boehner refuses to cut the corporate tax loopholes that has sent millions of jobs overseas, or instill a tariff on all imported goods, that by the way we use to manufacture here just a few years ago. Hard times are just beginning. I have no confidence in the American voter to do the right thing. How in the world can anyone who works for a living vote for a party that has no interest in them? So, yes, Sect. Geithner is completely right. Mr. Speaker....Where are the Jobs??? You ran on that platform.......if you can remember!!
Is he right? That would be an understatement!
Yes Jack, he's right. That's why we need Bll Clinton as president.
David, Las Vegas
My only comment is: If the government was a wagon with a broken wheel
to fix it .They would pant it!
What does it mean that Treasury Secretary Geithner says hard times in this economy will continue?
It means Geithner is hinting at reality.
Once in 1945, there was a country that exported cars, farm machinery, ships and other goods. This country even exported food and oil.
In 2011, there is a country that exports nothing, but imports everything: cars, farm machinery, ships, other manufactured goods, oil and even food.
The first country is an economic power house.
The second country is looking for a place to crash.
These two countries are the same country.
Hard times are here until the U.S. becomes a country that exports manufactered goods once again.
And, that looks a long ways off.
Its a sure indication that this administration has no idea nor the mental resources to contribute to the "jump starting" of this economy. Government has never created a job in the private sector. It takes the where-with-all of private enterprise and the innovate people that comprise it to pull us out of this quagmire without the meddling of government.
Gerry
Ash Fork, Az
Hard times for everyone but the rich. Geithner is part of the problem.
Probably...here's the deal, and you don't have to be a rocket scientist to figure it out!
Republicans (i.e., the rich) want Obama to fail so they will not compromise on ending the tax cuts for the wealthy or anything else he would like to achieve. They "cling to their money" like the ignorant "cling to their guns and religion." If/when the Republicans get back in charge, the Democrats will do everything to "pay them back" by not working with them on what they want.
It's a vicious cycle, a sick game, a never-ending-repeat-story. Or, to put it another way...
Clowns to the left of us, jokers to the right, and here we are, stuck in the middle. Disgusting.
Susan
Mansfield, Ohio
Only because we've trusted thieves with the money.
Sure he is right unless you are a CEO, a congressman –why is it only the working person takes cuts/concessions. let our elected nonrepresentatives "share the pain" and take a pay/benefit cut–won't happen because they feel the middle class, elderly/disabled on social security and medicaid recepients are the only ones who should be affected.
tampa, fl well have we stopped all legal & illegal immigration to give u.s. citizens first shot at the new jobs being created? have we secured our ports & borders? has d.c. stopped spending money they don't have? do we still give free health care to illegal aliens, but not our own citizens? has the president ordered the dream act to be used to halt deportations in spite of the congress not authorizing it and taxpaying americans rejecting it? do companies still ship jobs outside the usa and continue to set up off shore to not pay taxes? are the rich still getting very rich and not paying their fair share of taxes? until the buffoons on the hill stop doing business as usual, there will be no change for middle america.
Yes Geithner is right about this. There may be hope though.
Bring home the troops from Iraq, Afganistan, Pakistan, Germany and so on. Put the troops to work building large manufacturing sites to be made available to American Manufacturers for cheap and ready for workplace construction. Make them regulation free, within common sense. Make keeping manufacturing within our own country more lucrative than moving anywhere else.
I would ask,"Is that why he didn't pay his taxes until he go this job ?"
Make manufacturing within the boarders of the United States so lucrative that the companies that have outsourced will come streaming back in a rush.
I think he's right. I'm reading a book right now called "The Great Depression". Although you hear many theories on what caused it – and there are many – the root of it seems to be a huge deparity in disposalble income between the top .01 and the rest of the working class. Take home pay for the working folk became static while production of consumer goods continued to rise. There was an abundence of supply but not enough purchasers. That – plus land and stock market speculation (buy on margin), tarrif trade wars and the rest is history. It took a decade to get back on track and we may never have if it was not for WW II.
I hate to be trite but does that picture look kind of familiar.
He's right! And hard times will continue until the tax and spend Dems are out of the White House. Geithner is part of the problem. Just loook at his background with the big banks and his lack of paying his own taxes.
Malvern, PA.
Now there is really a sentient comment by Geithner. Of course, he is part of the good old boy network that brought us such hard times. Nothing will change until America ENDS THE FED...
Ron Paul in 2012...
Yes, and what an easy prognostication! With Greece on the brink of bankrptcy, with Portugal, Spain and Ireland teetering, and Obama and Boehner still rearranging deck chairs on the U.S. Titanic-Debt-Ceiling, Donald Duck could have called this one. Looks like all we have now, between us and the looming August 2nd dealine, are the rest of the quacks in Congress,
Since his continued lying is being exposed daily, I think he's changed his tactics and is only now just attempting to sugar coat the truth.
IF the Republicans get their way on their massive Federal spending cuts, Geitner is absolutely correct,
already the states are having massive layoffs in their public employment because of a lack of tax revenue and there has been NO real spending on infrastructure which is killing the construction business. that has lead to corporations, even though they are flush with cash, to NOT hire because there is NO consumer demand for their products. this has lead to a downward spiral much like during the Hoover administration.
think "Great Depression 2.0", Jack.
It means exactly what he said, hard times will continue – but only for the poor and middle class. The wealthy do not know what hard times are and the Republicans will ensure that they never do, even if they have to destroy the country to do so.
Jack, why is it that the Rebulicans congressmen are so against a tax raise for the wealthy?.. It is not a tax raise but simply a reinstatement of something the rich got away without paying for 10 years...They keep harping on those same people being the "job creators"..where are the jobs they have created with the money they have gotten over the past 10 years?.. I'm willing to bet that there was more money sent overseas to create jobs by those people than they spent on job growth here in the US.. While there bank accounts grew the middle class lost there homes.. The rebublican congress should be ashamed of themselves!...Rich
No, he's not! And he wasn't back then either. They were so dumb to keep him after he failed to do his job to prevent most of the financial and housing collapse!! You don't wait to call the fire department until "after" the house has burned to the ground! If he had any common sense he would tell Obama and everybody else that you don't spend another $100B on another round of unemployment without making sure that 8 million illegals are forced out of our jobs so almost half of our 14-22 unemployed legal immigrants and citizens can get back to work, cut that cost and start turning OUR economy around!!
Yorktown VA
He's right and it's going to get a hell of a lot worse if the Repulicans let this country default just to help their rich friends get richer.
Of course he is right. He’s not an idiot that thinks though it took FDR nearly two terms to recover the country from the Hoover disaster that the Bush catastrophe should be a slam dunk as many idiots do and blame President Obama for taking so long. What date did the Great Depression end on paper? With the Republican/Tea Party working harder to make President Obama a one term President then at trying to repair their parties gross mismanagement for eight years makes it even more obvious that they aren’t interested in anything but promoting their own political agenda. With even a little cooperation things could be getting a lot better a lot faster, but they won’t. The Party of NO will see to that. Be afraid; be very afraid… of Republicans.
for many in this country, there have always been "hard times".........the ability to overcome that fact and rise to a higher level has been the cornerstone of the American experience for the past 225 years.........opportunities await each and every day for those seeking a way to earn a living – unfortunately, after 70 years of government hand-outs, hundreds of thousands of potential employees choose to sit at home and wait for a stimulus check. At the same time, elected officials rosin their bows and continue the finger-pointing exercise as the country heads into a default status !
Of course he is right. This country is in the middle of a hostile take over by the rich. Geithner like the politicians are their pawns. Things will not change until there is a reason to. The American people have been caught in the middle for the last three years. what does it say of this country when the people that lead are willing to do this to their fellow Americans. like Iraqi's we need to stop following and learn to govern ourselves.
I believe it Jack. There is no incentive for job creation. The Republicans only goal is to defeat Obama and destroying the economy is their path to it. Corporations want him gone so that regulations go with him and they can return to their favorite past time...screwing American citizens.
Richard
San Diego
This one drives me Nuts.
He's right, one has to be in denial, or just plain stupid to think we are going back to work. Hard times are here to stay because we don't make things that employed millions anymore. Our nation became an economic powerhouse, because of the thousands of factories occupied by millions of workers, who made a livable wage, and paid the taxes to run this country.
It's all gone baby, and we face millions of idle hands.
The bottomless pit of profit, Wall Street, exported this mighty behemoth, overseas for cheaper wages, regardless of the damage it would do to the workers who were most of the middle class.
Indeed, patriotism is only a virtue to those who profit by America's loss.
Yes, he is right. The next shoe to drop will be escalating and devastating major government spending cuts, which will drive up the unemployment rate as government jobs are slashed. Those cutbacks will drive profits down for businesses, both large and small. It will be painful for most Americans, and it will take many years before government spending is eventually reduced below annual taxation revenue. But it must be done. And not just in America.
And what burns my backside is the Republican lead White house will not admit to their part in helping bring down this great country. They want to lay the blame on the Democrats and vice versa. Where are the jobs the Republicans said would come when the tax breaks to help the rich? Oh yea down in the Caribean banks drawing better interest that what we get here in the states. The mess in Washington makes me ill.
Hard times will continue in the U.S. as long as its Congressmen and Congresswomen play silly bugger and not come to grips with what remedies are required: raising taxes on the upper incomes and decreasing its military expenditures. The military-industrial complex is alive and well.
Ottawa, Ontario, Canada
Jack,
Yes, hard times are here to stay, perhaps forever as long as we have greater separation between the filthy rich, and the poor.
After listening to those who said retrain to a field with jobs, I turned to obtaining my Masters in Teaching, only to find no jobs and blatant age discrimination from those (Universities) who always promote "Non-discrimination" policies. In other words, looking for employment from those who pretend to be one thing, but in reality they are nothing more than a classic example of the "kettle" looking at itself in the mirror.
From my perspective, it is not what you know, how good your record is, or how intelligent you are, but instead we are hired based upon who we know. Is this going to be the world Geithner is talking about? I am afraid bad times are taking us back to the middle ages.
Joe, Binghamton, NY
As long as the tea-baggers have the cons scared to death about being primaried, and the lobbyists threaten to cut off campaign contribution to the cons, I'd say the country is in for a really hard time.
Maybe 2012 is the time for some of the congressional folks to hit the unemployment line.
Even a broken clock is right twice a day. Finally, it's Geithner's turn. Actually, it's a very disingenuous forecast by Geithner, given that he and his peers, i.e., the financial sector and Wall Street, has done VERY well the last two years, and will continue to do so. 80% or more of our citizens are barely treading water or have already drowned, but as long as the wealthy and the special interests are still safe in their yachts, who cares?
I see this as a phony issue, almost the same as WMD's in Iraq.
Assuming neither party blinks, the "day of reckoning" will be postponed countless times, much like the "day of Earth's destruction" keeps getting recalculated by oddball cults. Personally, I think America will really and truly run out of money on July 26, 2017, which coincidentally is the day I expect my retirement money to be fully depleted. No problem. America and I can walk hand in hand to the food bank that day.
Yes he is right because not only are many jobs overseas, technology continues to advance and more often than not, it is replacing tasks and products that used to employ people. Its a structural problem that has no easy or simple answer and as long as unemployment is up, the recovery will be slow.
Trickle Down Prosperity didn't work so it has been replaced by Trickle Up Poverty.
Big business are sitting on trillions in cash that they are unwilling to invest in new jobs....for what-ever reason....while the Government is going broke due to lower tax revenue and higher expenses.
Government cuts spending.....people have less money to spend...small business suffer....Business cuts spending (jobs)......consumers have much less to spend etc. etc.,.....Like a tiger trying to devour his own tail.
In the past, big business and the wealthy were the true American Patriots, they invested in THIS country, hired people, started business ventures and paid taxes......not so much anymore with their off-shore tax shelters, foreign investments, outsourced jobs and complex, business-friendly "tax code".
Sad to say, it will take a very long time to restore the purchasing power of the American consumer.......
Yes, I think so especially for those who had to default on their mortgages. Due to bad loans that brought money to the lenders. It will be decades before they can have the American dream of home ownership. Jobs will not come until confidence comes back to small businesses. and we have a new and fair tax structure. Which the Republican party and corporate America will fight tooth and nail. "We the people" have no vote in that. Lobbyist for big business will see that doesn't happen. Remember when Republicans ran on the idea of a flat tax and Bush got elected well he actually didn't get elected by the people the electoral college gave it to him... flat tax didn't happen but they got the vote and ran the debt up, went to war in the wrong country, thousand of our warriors died and we got deeper in debt.. And Obama got OBL. And the Republicans now want us to trust them to fix things ...not on your life. We are going to be in trouble for a long time thanks to the election of 2000. Hard times are here and for a long time.
I'm afraid he is right. There is a feeling of general malaise which I feel is much worse than during the so-called malaise of the Carter era. At least then there was some hope for times to get better. This time around we are not feeling it, and we have been told as much that most of the jobs lost would not be coming back. The loss of jobs has in my opinion been in fast-forward mode since around that earlier time frame when the number of blue-collar jobs declined rapidly. We really have never fully recovered from that, and what most policy makers aren't admitting is that as we have shifted to an economy more fully based on mental skill and focus, that these occupations are far less labor intensive than were the industires of the Industrial Age. At the same time it takes a lot more smarts to be able to compete, just as funds for education are being cut. We may be forced to somehow create an economic system not requiring a steady stream of income at all times, as many of us will not be likely to achieve one. A decisive attitude is needed in order to assist the resolution of these difficult issues and situations, and I don't see a sound one anywhere on the horizon. And while an enterprising nature may surely be able to open lucrative doors for some career-minded folks, the unfortunate byproduct of this is that there are far too many who aren't natural enterpreneurs, and they are most likely going to continue to be left out.
Where is a new idea from Republicans? Where is anything different from their ages old mantra of giving to the rich. This is not about small business, it's about BIG business and their hand-over-fist profit margins and the incluence and conributions they use to keep Republicans in office. We saw what happened under Bush: jobs shipped overseas, destruction of a great economic outlook, and countless crooks in big business stealing from all of us. We either trust our free government over the long run or we should just get rid of it and let 50 states raise their own revenue, protect themselves, provide health care and build infrastructure. I say we're still the greatest country in the world and we have a president trying to maintain that status with no help from the party of "no".
It is said that the Republicans will do anything to beat the African/American President Obama in the next presidential election.
Is that why they are against any legislation that would help the suffering American people?
Do the Republicans and the tea party have any idea of what will happen to the United States and for that matter the world, if the US doesn't meet it's debt obligations?
It is a little more serious than the treaties and agreements that President Bush broke, although torturing is serious.
It seems as long as the Republicans refuse to attempt to legislate in a bi-partisan manner there will be no solutions to the disaster the US is heading for. It could be worse than the "Great Depression of the 1930's"
Yes. Unfortunately, the people are not yet ready to say ENOUGH. Our uninformed citizens will keep being abused until we learn how to distinguish between the few honest politicians and the many bandits.
As long as Geithner and the republicans influence our economy, it will be in the toilet. With "friends" like Geithner, the democrats don't need republicans, nor do patriotic Americans, which excludes naive voters who keep voting for the politicians who are overtaxing the middle class and working poor. Wake up Americans and start analyzing the facts of what's really going on. Think for yourself, not Fox news, political ads, and emails from friends who want to direct your thinking. In other words, be an American first, and a political sheeple last. Eve of Texas
till we get a new pres this will be our darkess days
From the Republicans rejection of the deal on. Remember, Mitt Romney's economic advisor is Glen Hubbard, President George W. Bush's head of the Council of Economic Advisors. Great Recession II is coming.
Our economy has taken a drastic turn since corporations are in collusion with off-shore countries to share the wealth. China has our corporations in love with their cheap labor and rigged monetary system.Face it, countries like India, China, Japan, and South Korea won the lottery because of our corporate greed. While this pipeline of cash flows overseas, the middle class is losing benefits, education, and health care. The rich care nothing about patriotism and compassion. They take advantage of all their tax breaks rather then accept sharing in the pain. Crack down on corporations, the rich and China's unfair monetary policies and you'll see this crisis come to an early end. The GOP will have none of it!
Add in every kid that just graduated high school or college to last months reports, then calculate the population explosin no one wants to discuss and predict what the next decades look like...bleak comes to mind.
I am waiting for someone to finally come forward and call this economic predicament we are in what it truly is: A Depression. No jobs,the unemployment rate is rising again, banks are failing,homelesness is on the rise, and the government is on the verge of bankruptcy. Let's call a Spade a Spade here and do what is necessary to right the economy.
Jack – if Secretary Geithner believes that this will get any worse than he should call it what it really is – the Second Depression. And who does this impact the most- the poor. And who are the poor now? easily over 80 percent of the American population. Since Geithner, OBAMA, the Democratic Senate and the Republican House can only lay Partisan blame on this problem and provide no real solutions than every American should take their vote in 2012 and vote every incumbent out of office. It is our Country, and it needs to be taken back. If you havent noticed-wake up- these people are destroying our Country, and we are letting them.
Why isn't anyone calling this Great Recession exactly What it really is: a Depression. Times have not been so dire in this nation since the last Depression. The housing market is down,homelessness is up,food banks are hurting, consumers don't have any confidence,and corporations aren't spending because they don't know what is coming next. All social programs are being cut and some on the local level even eliminated. The young,the elderly, the disabled,veterans and the homeless are losing more while the Fat Cats increase their wealth out of the hides of the lesser fortunate. Stop sending aid all over the World and start employing ,feeding,and housing the American people.
Until Wall Street and Wasshington wake up and realize if unemployments stays as high as it has been and doesn't improve, people just aren't going to be wild about buying any more than necessity items. (The bottom 99% of the population won't, anyway and there' only so much spending the top 1% will do anyway). Why is it that our people in Congress do NOT understand basic economics????? It's really disgusting, Jack.
Treasury Secretary Geithner: Hard times for some time to come. Is he right?
Too much too little too late Geithner! It means Treasury Secretary Geithner and all his comrades need to go!
Geither just threw Obama’s 2012 presidential bid by omitting the current policies have not been working. Most Americans are not going to vote for this incumbent if they don’t believe they are going to be better of tomorrow than today.
actually I would like to see us to default on our debt. T his would show how corrupt our two houses of congress. the president should not have to tell the children we have elected how to do their jobs. a failure would be good for us.
He finally got one correct except he should have said that it won't be tough for the wealthy until the value of the dollar is nil. The head of corporations in America should be ashamed of themselves for sending jobs overseas.
Tax the rich, end the wars. It's that easy.
I think the Treasury Secretary is correct. We have reached a high amount of debt and it is time that Americans will have to begin paying more taxes so we can support our government.
Is he right, Jack? He's just described life for most people under "trickle down" economics, the same people who have worked so hard to stay above water over the past 30 years in an economy that has made the wealthy so much wealthier and the poor the fastest growing segment of the American population.
Just wish Geithner and every politician in DC would participate in the hard times with all us plain ole citizens.
yeah he's right. because we don't make things (widgets) in this country anymore.
decades ago we could count on the manufacturing industry to boost recovery. sadly, we don't have one to fall back on anymore.
Crappy days are here agin...doo dah
Warren Buffett says the recovery will last at least 10 years.
Jack,
Until the elite of this country achieve their "one world" vision, hard times are here to stay. Maybe a generation, maybe two or three. We have already lost many in their 40's, I just hope we will not lose those who are currently 3.
This unemployment problem was clearly predicted when congress was passing Obamacare. Employee costs, extremely restrictive regulations and high business taxes make is a simple decision to take jobs to other countries, if possible. A clear example is the current Democrat push to increase taxes on jet manufacturing. Where do you think those jobs will go?
the u.s. doesn't make anything anymore. if we invent it, it goes to mexico, china, inda, bangladesh etc to be made.
whatever happened to MADE IN THE U.S.A.
if consumers demand usa products, eventually, the stores may figure it out.
Yes. It will get worse before it gets better. Remember, this all with Clinton's administration. Good intentions but failed in the long run.
Yes. As long as the Republicans refuse to raise taxes on the wealthy, and not close tax loopholes.
Is he right about hard times? Absolutely. What is also right is the fact that Mr. Geithner is too young to remember what really hard times were like. Like the song says, Jack, You ain't seen nothin' yet...
Geitner is definitely right about the American people suffering in the future. My question is: When is it going to be hard times for the corporations and their highly paid CEO's. The just keep making big bucks and enjoying life to the nth degree. The middle class always suffers and the corporations just keep making record profits. The Republicans are fighting raising taxes on the rich because they are the job creators, however, I would like to know when they are going to create more jobs as promised.
Yes Jack, and it's tough for the wealthy too....ever try and set down with a back pocket full of congressmen? Very uncomfortable!
Hi Jack,
Nope he's dead wrong, the Republicans are going to create all these new jobs .............right?
Hard times for awhile? Only the rest of our lives.
I sure hope not. It can't get much worse when your husband is unemployed and your house is going up for auction Aug. 5. I don't know how we will make it without some sort of job.
You said it all: "They've been shipped overseas where labor costs are much less, meaning corporate profits are much higher."
Until members of both parties recognize that globalization of the US economy has been disastrous for their countrymen, we'll see more and more unemployment/underemployment and more skilled craftsman and highly educated workers serving lattes at Starbucks. Eventually this trend will kill the American market for consumer goods because too few people will be able to afford them. We'll see everything from barbershops to mom and pop hardware stores going under. Theaters and restaurants will be closing here as fast as they're opening in China.
It's time to invest in American industry and institute sensible import tariffs again.
Jack,
I'm in Cincinnati, OH and the last time I went for a job posting there was appro. 150 of us applying to the job; it's worse than you think out there!
Hard times are here and will continue. We are only 3/4 of the way down the slide. When are we going to hit rock bottom? What is the bottom? People begging for money on the streets? I see at least one everyday. And who will get special privledges and be saved and who will be left to suffer? The wealthy have the means to turn the tide but are to greedy to pay a little higher taxes to save our nation. Our great nation isn't so great at this time. History has proven all great nations fall. All roads lead to Rome.
The biggest issue is the fact that 2% of Americans have control of the economy. These are people who own companies and are in a position to hire. The reality is these are the same people who oppose the majority of President Obama's policies. In their eyes, if they open the floodgate and began hiring that would equate to a 'win' for our President. They will not do that. They prefer to watch the country bleed to make their political point of views. I am unemployed but would still be willing, once I secure a job, to give $25 extra per year in taxes if it would help our country and my fellow Americans. Those who have the money and the power will never view these issues from the eyes of the average American because all they see is green (as in dollars). Greed is what is ruining this country.
Wolf Blitzer hit the nail on the head with the underemployed. I am one of the underemployed. I am over 50, have 4 college degrees and have a part time job for $8/hr. I apply and apply for jobs all the time. I have even gone the career change path and still nothing. I have lost my home, I live with my aging parents and have to try to find some kind of work somewhere to at least pay my minimum bills. The unemployment/underemployment figures are definitely much higher and we, as Americans, have a right to know!
I've been out of work for years. Through a lot of "adjusting," we haven't yet had to access any government funding. We hope we won't have to as we continue to look for legal ways to pay our bills. We certainly wouldn't want deprive the "job creators" of the tax breaks they get so that sooner or later they MIGHT decide to create those jobs. In the meantime, we will continue to list our "hobby incomes" on our taxes and pay the taxes on them while we try to find something that will actually PAY enough to call it a job, a business or regular income. As it gets more difficult, let's hope we can continue to increase our "hobbies" to pay the bills and taxes.
I am afraid he is right. I know the situation all too well. I recently graduated with my degree in education and have been hot on the job trail since I graduated. I have met with principals and other personnel to only be met with "we aren't hiring" or "I will keep your resume on file and keep you in mind". Education should be the number one priority in this nation, yet jobs are being cut in this sector right and left. Those of us that are new graduates in the education field have to fight to get a job. This country needs to start first with the education sector in creating jobs because us future teachers are the ones who set the future for the world. We help teach children who will eventually end up in the workforce. So, if there are more jobs in this sector, then it will eventually lead to even more jobs in the nation. I really hope this crisis ends soon!
Is he right? Only if the Republicans take over completely will it get worse. Take away from the middle class and give to the wealthy. Maybe if Congress would donate their PAC donations to the debt we could put a dent in the budget but they all keep taking from the very thing that has made our country strong, the Middle Class now the working poor!
Jack–
Sec'y Geithner is right, only he is still understating the case. Our new globalized world is structural–and it won't be kind to the USA until & unless we REALLY get our act together. Don't hold your breath.
Don
in Santa Fe
We keep giving the greedy rich more money and expect they will create jobs. They don't need jobs! We have to pay them unbelievable amounts because they are the "best and the brightest"? No, they are just greedy and in a position to extort. Social Security is the "College Fund" that the greedy Congressmen spent! Shure, let's take the next step and get rid of it. Integrity is lost. You just got a burst of truth from Geithner.
Hey Jack,
Let's get a grip, here buddy. Unemployment in 1983 was 12.8 percent, about 3 and a half percent higher than we are right now, and remember that about 4.3% of that is called structural unemployment. Let's not put the words "Great Depression," next to any comments your making now. It scares people that don't know better. Sure it can get worse, but we're talking about a government shortfall, not the US economy.
Patrick
first off the people of the usa need to give the president a brake hes still tring to clean up bushs mess and a house that is dived will fall and when i was in school we learned there was a unied nation and the usa what happen to the unied nation helping us
Hi Jack,
He is right, if indeed the Republican continue to protect their campaign financers by rejecting a balanced approach to the debt ceiling and refusing to close entitlements. As long as they are concerned more about keeping their jobs as opposed to Americans getting jobs, sad to say the market will continue to be affected and the private sector will refuse to expand and create job opportunities.
They've been saying that for how long now? 4 years or more? Times are not going to get better for Americans until the leaders of corporations actually quit lighting their cigars with hundred dollar bills. Bring those cheaper labor jobs back to our homeland and pay us minimum wage if you're so worried about spending too much. Minimum wage isn't ideal, but for now it's all we've got.
If Washington has anything to do with it, YES! And another thing Jack, please get your rhetoric correct; the government administers SOCIAL SECURITY they DON'T pay it. U. S. citizens PAY IT. And don't forget the government OWES Social Security 2.6 TRILLION (yes, trillion with a T) DOLLARS. I'm sick of the media and Washington pretending that this mess is because of Social Security. THE MESS IS THAT WASHINGTON ROBBED THE PIGGY BANK! SO GET OFF OF IT.
Our Government is doing what they do best, NOTHING! Arguing over the fate of our country while " We the people" Sit back and wait. The rich refuse to pay more so the rest of us can suffer more. Staying the course right...
I want to ask the so called “job creators” the same question John Boehner asked Pres. Obama: Where are the jobs?
They've been receiving tax breaks since Pres. Bush was in power and I don't see any new jobs. The Republicans argue that they don't want to raise taxes on the very rich because then they won't create any new jobs. I have news for the Republicans, they haven't been creating any new jobs and they aren't going to. Why don't you just straight out say that you don't want to raise taxes on your major campaign contributors.
I agree with Geitner that hard times are a'commin. However, has he paid all his taxes yet? His body language tell me he's a liar from the git-go. Let's get rid of the idiotic subsidies to test cow flatulance, etc. Stop all SSA payments to anyone who hasn;t put anything into the SS fund. Why would we help South America to find oil for China? The whole congress is a bunch of give-away idiots!
Of course he's right, Jack. While Obama's stimulus package may have helped stave off a full fledged depression, we are still deep in a recession that can only grow stronger the longer it lasts. Its always the darkest before dawn.
Major employers will sit on their money and jobs to push the Presidential election to the Republicans, so yes, hard times will be here until then. These are the same employers the Republicans claim will create jobs if we keep taxes low. What have they done while taxes have been low? Ship our jobs over seas. Trickle down economics? They have been trickling on us for quite sometime.
We wouldn't be this deep into this situation if the corporations were paying taxes like the rest of us. There's a faster way out than just cutting spending and raising taxes, charge the corporations back taxes, and mandate that 1) no downsizing to cut costs, 2) no raising prices, and 3) a hard cap on how much CEOs and Boards of Directors can earn annually. We also have to cut military spending, this is not an option, it is a requirement. I also think Congress should not be paid to penalize them for not passing the 2011 budget on time, and they shouldn't be paid until after the next election for failing in their duties.
Jack
You asked the wrong question. The question is
'Is there any chance he might be wrong???
When 40% of the population pays no taxes and
20% of income is from the government, how can
the economy overcome those barriers and
get healthy? Civil unrest may be just ahead.
Melbourne, Fl
DUH!
As long as Obama is president we will not see job growth. His policies are anti business and anti growth.
Jack:
It's time to call it like it actually is. It's the Second Great Depression. Calling the economic downturn that has seen many banks close and so many people losing their homes anything else is dishonest and whitewashes the damage that the economy is in. Just like the first Great Depression it is going take Massive public spending and works programs to get the economy working again. Republicans want to keep tax breaks for race horses and oil tycoons when what we need is a New Deal that fixes our deteriorating infrastructure while giving everyone of the job seekers a chance at meaningful work. Overseas profits? I call that criminal activity during time of war.
Jack, We all have short memories. Less that 2 years ago the prior administration created thes mess we are in. Now we want to put the wolf back into the hen house. Chris
Want to ease this economic fiasco were in? Bring the troops home from Afghanistan and Iraq let them defend themselves already! Who really knows how much this war on terror is costing us!
As long as these BOZO's in Washington continue to put their political agenda ahead of the country and her citizens, Geithner will be right! Both Republicans and Democrats need to give a little to find common ground for us commoners!
Didn't the Republicans insist that extending tax cuts last year would guarantee that millionaires and billionaires would use the money they didn't pay the Federal Government to hire more people. Or, was that another country they were talking about?
Tom Ryan
San Antonio, TX
There is certainly no reading between the lines in what Geithner has said unlike the Republicans who said extending the Bush era tax cuts would create jobs giving people hopes for jobs.
Well, that all depends on how soon the Republicans stop sabotaging economic recovery efforts for political gain. They can NOT allow things to get better while the White House is in Democratic hands. The worse things are when we go to the polls, the more they can twist it to appear that the Democrats are to blame. I guess that all translates to yes, things are indeed going to get worse for the average American at least until the elections. I don't think the corporations have anything to worry about, though.
Jack,
Unfortunately he is right, but isn't telling us anything we don't already know. Until people in Washington get off of their duffs and start doing what they need to be doing (governing) to get this country back up on its collective feet (everyone and not just the wealthy, MNC's and Wall Street) then the jobless recovery will continue.
Unfortunately the "adults" in Washington are really just a bunch of spoiled kids who won't grow up and do what is right. And we the American people keep voting them in. Yesch!
Hard times will continue as long as Boehner and the Republicans continue to say they will not allow tax increases on the wealthy, but prefer to cut programs that affect the poor! The excuse is that the wealthy who received the Bush tax cuts are job creators. A whole lot of jobs the wealthy have created since receiving the Bush tax cuts! That's why unemployment is at 9.2%!
Jack,
He's only covering for a failing and corrupt administration, which continues to blame the previous one for the mess we're all in. If the economy had improved, don't you think he would be out in front of the camera daily telling taxpayers that he fixed the economy? How can the Obama administration put so must trust in someone who's proven he can't even pay his own taxes??? This administration is really dumb!
The recession wiped out $7.8Trillion of middle class wealth-cash-home equity; the wages have droppen off a cliff, the "consumer economy" has fallen off a cliff. For JOBS and recovery–the politicians need to hang their head and pass the deficit ceiling increase AND JOB creating bills-middle class agenda's to rebuild JOBS for Americans. Businesses need to get off their Midas Holdings and hire people or invest in business opportunities in AMERICA. Banks need to get back to lending and not whine about CMO-CDO tragedies of 2007-8 as an excuse to stop all reasonable credit activity.
Bottom line–get back to business of and for Americans. And engage in Global commerce watching the back door of the European crisis over the PIGS, the Middle East OPEC Shieks creating their wealth and yes–China and their drive to take over the world and all the natural resources Americans would need for computers, Green tech and emerging manufacturing of new products.
Going to be a tough battle but Americans can and have overcome–this time the younger generation needs to work as hard as their forefathers and not sit around waiting for bailouts, handouts.
Mr. Cafferty, I'm 57 yrs old. My family and I live in s.w. lower Mi. I had worked untill march of this yr. Now its unemployment, foodstamps, medicaid, and not much in the way of hope. Our Govt. needs to STOP sitting on its hands, and think of WE THE PEOPLE, not other Corperations, and countries.' nuff said!!
If the rich were going to create jobs, then why are thet sending jobs to China, Vietnam and other countries, while making millions of dollars to pad thier pockets with outlandish bonuses and benefits. Not only should they pay higher taxes on personal income, but thier companies should be taxed for the jobs they have sent out of the US in the form of a retraining tax that covers unemployment benefits. It is time to stop the greed of the haves including those in Washington who were elected to serve the people.
People are already facing hard times. I'd hate to see what he means if we're to experience further hardship. This recession has been hell on Earth, and the people in power don't seem to realize that. Perhaps they should start looking for work, one where they can't screw with everything we hold near and dear. The politicians should be the first ones to lose their jobs and benefits before we the people do. I guess they would rather see scenes like those in Athens and Cairo happen in New York and Washington, because at this rate, that's the only option we're going to have left.
Yes Jack Times Are Tough And Will Probably Get Worse Before They Get Better But Nobody Can't Say That The Obama Administration Isn't Doing Everything In Their Power To Try To Make Things Better. This Is What 8 Yrs Of Republican Leadership Can Do To A Country And Come 2012 Americans Better Think Long And Hard Before They Cast Their Votes Because Things Would Be Alot Worse With A Republican President And Republicans Running Both Houses Of Congress!
Scott Stodden (Freeport,Illinois)
What is wrong with our government that they cannot find an answer to our problems. To start with the Congress should give back their pay raise they voted for themselves before they even discuss cutting Social Sec. or medicare, That would make the American people have a little more faith that they really are trying to correct all the mistakes of spend spend spend in the past, instead of playing politics because they are afraid they will lose the next election. The middle class is always the ones who have to give up something not the business people. The Republicans are the ones that got us into this mess under George Bush and now they are trying to make it look like it is President Obama.
No... He's not right. The problem won't continue for "some time to come." It will continue forever. For the first time Americans are being forced to compete in the international market against very well educated, very hard working people in other countries who don't all own 2 large SUV's with custom license plates.
If our so-called "job creators" are allowed to continue paying unfairly low federal taxes while still not bringing our jobs back from overseas, yes, times are going to continue to be really tough for all of us. Fair is fair, big business. You guys use highways, airways, trade negotiators, get lots of perks to enhance your ability to make a profit. Reach in your pocket and pay your fair share and invest in American jobs again. What do you think made the US an economic powerhouse in the first place? It's the American middle class, stupid!
Why would he put out such a prediction if the president didn't agree with him?
Secret and private corporations run this country and they are the only people our government truly cares to take care of! Win win for the rich people! We are just the sheep that keeps the money going their way!
Its about time someone is being truthful and not trying to tell us that the economy is recovering. How can it ever recover if American businesses are out of the country? American jobs and products have been sold out to China, they are never coming back. We are so screwed =[
I think he’s absolutely right. When taking into consideration the facts that corporations insure higher profits by sending jobs over seas, our critically necessary infrastructure is falling apart, and we are falling into an ever deepening skills gap in the current tech job market; I don’t see how unemployment will ever be back down around 5 or 6 percent if we don’t get real serious about investing in our infrastructure and education.
Jack,
I may be totally out to lunch here, but in my humble opinion, I strongly believe the current jobless situation is based on two primary causes:
1. Our country's current business doctrine is Greed Based. Business is not willing to compromise in order to help this country, if it means giving up any profit. The team spirit that existed many years ago is gone I'm afraid,
2. We have created a culture of folks who will ilk the government for every penny they can, whether they deserve it or not. They have found ways to draw unemployment "legally" well beyond that is reasonable by any standard. Same goes for Welfare and other "social programs".
Common America...... let's get back to being Americans.
Jack,
When are those people in Washington going to wake up to the fact the "Great Recession" never ended for middleclass and poor americans who have lost their jobs and homes?
I keep asking how many jobs have been created since congress continued those Bush tax cuts for the rich, but no one will give a straight answer. And I'm supposed to be sold on the idea the rich shouldn't pay their fair share by increasing their taxes so jobs will be created.
Joan Gilbert from Skowhegan, Maine
Jack,
Everyday as I watch the news, it makes me completely disgusted to see Washington going back and forth on the debt ceiling and everything that only affects US not THEM. Their lives go on as usual, day to day, while most of us are trying to EAT, FIND A JOB, SURVIVE. How did we get like this? By believing in these so called servants of the people, what a joke!!!! they serve themselves, no one else. They have no concept of reality anymore. Yes, this unfortunately will go on for sometime I am afraid and as long as the MAJORITY of these jerks are in Washington in kindergarten class we will continue to go down the toilet.
Broader question, why US is not having jobs – we know he answer. Cheap Labor abroad and Oursourcing. We all know this. US made textile in 1950's and now we just buy ready made garments from China. US made Software, we now buy from India. US made cars. we buy from Japan. This is old story. Unless we have Manufacturing sector rise in this country , our situation will remain grim. Where is that FAIR trade that Obama Goverment talked? Where is fixing TAX code for Imports and why can't we TAX imports on luxury items from TOYS to Electronics increase by 100% – 1000%?
These drastic steps will increase manufactuirng in USA. It is that simple. Does Congress have GUTS? That we don't know
Geithner's got it right Jack and I'm betting he, himself will be leaving Obama's sinking ship of state before this year is out. He
will join the host of other top administration officials who have already departed. Unemployment and hard times seem synonomous with the current administration.
Gary in Scottsdale, Arizona
Jack,
I don't believe anything Secretary Geithner says. He failed to stop Wall Street during the Credit Default Swap mess, and avoids speaking on camera about how taxpayers are now paying for his irresponsibility. When asked to be interviewed for "Inside Job," he refused. Why did no one hold him accountable for that screw-up?
Bob
Fresno, CA
He is right and I think it is naive for anyone to think that things should be wonderful after the recession. This wasn't just a recession, this was the closest thing we had to a depression and could have easily been a depression had things been a little different. But jobs are needed and we sit here and watch companies hold onto trillions of dollars in profit and fail to hire while making their existing employees work even hard & longer to make up for the shortage of people. The GOP fuels the fire of fear, as they do so well, blaming everything on Social programs that help people. Eight years of Bush spending & tax cuts for the wealthy is what got us here and during that time we had the lowest job creation in decades. So how is it that the GOP can sit there with a straight face and say higher taxes on the wealthy job creators is what is causing the lack of job hiring. What a crock!! This is worse than terrorism if you ask me.
he is wrong jack , not unless the 11,000 farm job openings here in ga get filled. since we don't enough illegal immigrants to do them
No, he's not right. There's a difference between finding a job and finding the job you want. Some Americans will sit on the sofa and let their house fall into foreclosure rather than get up and work at something they really don't want – for example ELDERCARE!!! There's such a shortage – at $35 an hour in LA the only people applying are Fillipino!!!! Tax the hedge fund managers – they don't even pay the same rate of income tax we all do!!! Now that's a loophole Obama should look into –
helen from Florida
Fire them all we don't people like them making desisions for us.
Yes it's a new world in deed Jack! This debt ceiling could simply worked out if the republicans stop protecting the wallets of the rich. I am a well educated man with degrees in city planning and i have been out of work for 5 years! I have had no choice but to work in the mortgage bank industry which has been flaky ever since hte housing market crashed and that is the real why I am not planning any communities any more either. The fact is, those jobs we once had are gone vere seas like you said, and there no more medical benefits, there no more, full time perminant jobs, this country truely has gone to rich, those private jet flying, no tax paying parasites! Meanwhile we middle class are slowly dyng, without jobs, no housing, no medical, no income, no future...
Since the 80.s, Corporate America has been putting the middle class under assault, they started changing, down sizing bennie packages,forcing older workers to take early retirement.....etc....The economic crash we have just experienced was so severe that it will take years for it to be resolved, and thats is only if the GOP and Dems get it together and solve some problems for the greater good.....
Absolutely Jack. Not only are jobs disappearing oversees due to lower costs and corporate tax rates, our government lacks the ability to make any type of significant change. Clearly there is something fundamentally wrong with our economic system. It is time to stop the bleeding and find the route cause of our problems rather than applying bandages that only provide short term aid.
Mr. Cafferty:
I understand our fine state has just leased out our turnpike and privatized our prisons. It sounds like they expect open roads and a high crime rate...that would certainly be bad times. He did not mention camping out inside the highway clover leafs, the loss of homes, and learning how to serve the "haves" (one being a "have not") in lay terms he is trying to say in an eloquent way, "You ain't seen nothin yet folks!"
I spect for once he is right.
Milton Friedman said that there are two kinds of economists: "those who don't know, and those who don't know they don't know. As to which category Geithner falls into, take your pick.
We can't expect to live high on the hog anymore. These problems were there before this administration took office and was thrown in their lap to fix. What do you expect? Instant gratification, which is what was going on before this crisis! Consumerism and jobs go hand in hand. If consumers are not buying, retailers and companies are not selling which is a big factor in job creation. This is going to be a slow and painful process for everyone and, of course, nobody likes it. Let's get rid of some those egos out there and work together to solve this economic crisis. What ever happened to compromising? Something has got to give pretty soon.
Yes, extremely hard times. The free trade imbargo was the start of our job lose and tax breaks for the weathiest and corrporations have bankruppted this country. The wealthy can no longer stand on the backs of the poor and the middle class. A revolution is bound to happen if we do not change the course of this country. Human persaveriance demands that we will fight to survive if food is needed, people will steal it. And if it gets bad enough people will kill to survive. We all must eat!!! To fix the problem raise taxes and most important force companies to pay US taxes to import goods. No more tax breaks by leaving the country. Big buisness wont leave!
As long as all the(American) Jobs are overseas, YOU BET! As along as we keep giving billions to nations who would rather see Americans dead! YOU BET! As long as we keep putting off R&D on renewable fuels, YOU BET!
Hey Jack you ever look at a New Dodge Ram Truck? Look for the door jam sticker. It says................MADE IN MEXICO!!!!!!!
the business owners I know have no intention of hiring anytime soon. They have learned to get more out of fewer employees. Let's make sure we don't raise their taxes.
Yes Jack, I think hard times will continue for some time. The lack of jobs seems to be the big issue here. So we've had the Bush tax cuts for 9 or 10 years now. Republicans ALL run around crying that we should not discontinue the Bush tax cuts because the filthy rich job creators need these cuts to create jobs. So then, where are the jobs? What a crock. The only reason that Republicans cry that these tax cuts are kept in place is so that the rich can get richer. Does John Boehner really think the American people are that stupid....Please ! Democrats need to drive that argument home...
Paulette in Pennsylvania and Patrick in Maryland are correct: This is not a recession but another Depression. People have been out of work for too long and some have stopped looking. The only jobs to be had are in the military- yes the Military Industrial Complex is alive and well!
With only rich people having money, who do you think the Congress and Senate are going to protect as the only source of funds to fuel their nest re-election?
I am one of the 24,822,133 unemployed americans, and with my family, I've been experiencing, first hand, the hardships Mr. Geithner can only talk about.
It is NOT going to be harder for a lot of people – No Sir. You can rest assured it is harder than ever ONLY for the vast majority who did not benefit from the inescroupulous job-gutting our Government continues to allow.
Jack, Only because the Obama administration got bad advice and missed a golden opportunity—to fix unemployment in their first 6 months. The Humphrey-Hawkins Full Employment Act authorizes the government/president to create a “reservoir of public employees” anytime our unemployment rises above “3%”—and we can do that without adding a dime to our deficit—but I fear that political window has closed.
Clinton left office with the US having money in the "bank". The next President cared only about what he will look like in history. Short term he will look good after 9-11. Long term , he will be shown to be a fool who destroyed the middle class!
Perhaps the wealthy corporations could stop sending jobs overseas. Perhaps that Publicly elected whorehouse we call a Congress gave the workng people a break for a change. Till then, BOHICA America.
The comments by Mr Secretary points out the Great Divide between where the Administration is prepared to go... Banking Lobbyists vs We the People. Jobless and homeless... we must wait our turn ? The Administration can not be bothered at the moment.
Until these clowns in Washington realize this is a consumer driven economy nothing will ever get done.Giving the breaks to the wealthiest of our society just isn't going to make it. Middle income people=consumers=more business for large and small companies=more jobs = more tax payers=less deficit=thriving economy. Just where did I start this sequence? That's right middle income people. A tax holiday for anyone making less than 100,000 a year gradually phased back in over the next five years. This would include eliminating the Bush tax cuts for the wealthy.Consumerism is capitalism!
He's right, Jack. If you were a corporation that has learned that you CAN do more with less, and you're making tons of money, why would you want to bring jobs back to our country?
Which side is he on?
The so-called patriotic American business owners have been moving jobs overseas for sometime now. The press and the pundits have failed to make this point. If the motive for the jobs movements is profit, then no amount of promises by politicians is going to bring the jobs back.
Americans must only buy made in America. Every government contract at all levels must insist on 100% made in the USA materials content.
Any tax breaks to individuals just goes to stimulate the Chinese economy because the demand generated will be for goods manufactured in China.
American business owners are holding the American people hostage – if they don't receive everything they want they will take their business somewhere else..
I don't mean to change the subject, but exactly who said that "the Great Recession officially ended in June 2009"? If it did, why are we still having this conversation? It must have been someone rich who said that and they just keep getting richer and they obviously don't care about anyone but themselves.
the economy will be bad for some time but making the record profit oil companies reduce gas prices & let the rich be taxed will help the middle and lower class a great deal
He is right because he knows how the GOP is able to manipulate the sorry economic state of the country now. I don't think the(GOP) really wants the economy to turn around now. Then people will be happy and reelect Obama for another four years. They want the Americans to struggle more for until next year and hope to win the presidency cashing in on the frustration of the people. Then they will ask their big business masters (who are supporting them) to open up hiring and make more profits for themselves. The cycle goes on.
No jack happy days are here again Malcolm X said " .Show me a capitalist ,Ill show you a bloodsucker" Well the Federal Reserve Bankers are first class capitalist ,the people that own that bank are the richest people in the world. At least I was luckey enought to live in the best of times for America.
As long as the public sector reduces jobs to cope with the federal deficit and the trickel down effect to states and local government, that nearly offsets gains made in the private sector the chance for a short term recovery is nearly impossible.
Here in Minnesota the state shutdown of 22,000 workers is already impacting small businesses, but over half the legislators who have contributed to this impass are still collecting their pay.
Dick
How can the economy rebound and produce job when are lawmaker prefer to play cat and mouse games with bills and laws, you think the should be passing new one !!!P.S. would this help them or American People!!! PLEASE WAKE UP
OKLAHOMA
Jack unlike 1979/ 80 they have no control in the interest rate I think the jobs out there will be at lower rates with less benefits. Then you will have 2 large class's of people who work for Government fed, state, local, who full benefits and the lower class that support them.
Timothy Geithner speaks the truth. He has always tried to speak the truth. When politicians dilly dally and play king of the hill, Geithner tries to speak the truth. It's not pretty, but without the truth we cannot build a plan to move forward. And we need to recognize people are grieving. People have lost livelihoods that will never return. Face retirements that will never be funded. We have lost the middle class and replaced it with an wealthy elite that considers themselves 'World Citizens' and do not care about the plight of the lowly American.
The reason we will continue with a miserable economy is that our elected officials just don't care. Follow the money – campaign contributions.
As long as the GOP continues waving the corporate colors – and the Democrat’s allow Republican’s to fraudulently represent the “American people” the hard times will continue! DUH!
Americans can't deal wirth truth any longer. Truth is we are in a depression. Truth is Congress, the administration, even economists have NO idea how to fix it. It is like medicine, a 50 % chance of fixing anything. Government is so polarized, bloated and clueless that likelihood of effective change is nil. Think beyond this life and turn to Him who has a mansion waiting for those the trust and obey.
I worked for 2 big businesses in the last 10 years. Both of them increased profits by outsourcing work overseas and bringing foreign labor here to work for less. The profit this produced was used to give upper management bigger bonuses and raises and increase dividends for shareholders. Meanwhile the domestic worksource was downsized and the few that remained made to take on more and more work for the same amoung of pay. So Republicans need to stop lying about the wealthy being job creators. They need to be reminded that they are elected to serve all the American people, not just the wealthy 1%, big business and special interests. Now they seem willing to destroy this economy in order to get back into the white house, so they can finish disempowering the American worker and destroying the American middle class.
There's only one reason why companies aren't hiring.
Obama!
Get real guys, As soon as he's out of office, and "some" fiscal sanity is put back into DC (I do mean some since no one will ever really fix the problem) then companies will start hiring again.
Remember that in 2012...
Now bring it on!!!
I am a Republican by choice but I am sick and tired of them saying no tax on the rich. I have not had a raise in almost 5 years. We are filling the effect from all sides, product price increases from food to clothes and all other products. Fuel is out of control, when winter hits it will be even harder for a lot of people.
I can say I have been lucky and kept a job through all these hard times but I have been at the low end of middle class witch means every cent counts.
I have to work long hours when demand is up and deal with short hours when demand is down. I am not on a salery so it hurts.
It is time for our elected officials to start doing the same. The demand for a fix is high up on the ladder, they need to work 12 to 16 hours a day 7 days a week like some of us have to till the problem is fixed.
Some of us saw this coming years ago. We have a very dogmatic and ideologically driven political party that is saying to the country, `you must do exactly as we say or we will take what`s left of the economy and tank it`. I imagine the founding fathers are rolling over in their collective graves, asking themselves how a government so brilliantly designed to utilize and respect compromise could be failing so thoroughly to do so. They never met the Tea Party crowd.
Until the News Media and opposition politicians stop their negativity nothing in this country will go right. Maybe it's time to break out that old book by Norman Vincent Peale titled "The Power of Positive Thinking".
Geithner is correct..................this is by far the HARDEST I have seen it since I was a kid and my parents both held TWO jobs......rent was $15 a week............$20 in your hand felt like a fortune to some people........on Christmas day I received an orange....an apple....and one small gift under our tree...I was one of the lucky ones....I didn't mind......I was young but I saw the suffering in my parents faces..............I am 76 now..........and now our children and grandchildren face the same tragedy of an economy that will destroy a lot of people..................it is so sad that a country as great as America has again come to this moment of possibly instant poverty......I pray for my country and its people.
Yes, He is right. Until we get leader who dont lie and work for America no matter what there politics are. They think were stupid, I don't know maybe we are. If so we get what we deserve. When you watch boehner come right out and blatently lie to americans, telling us that the majority of americans don't want higher taxes for the rich and brushing us with a broad stroke is insane. I hate liars and never see them as my leader. Until we get these liars AND CHEATS OUT OF OUR LEADERSHIP WERE DOOMED. Best Jack.. oh I forgot you have a job, guess your covered.
Less Keynes. More free market. The net effect will be to stimulate confidence, which is almost non-existent.
Let's face it, Boener and his cronies can help solve the problems by agreeing for the Bush tax cuts to end.
Dear Jack, I would expect that hard times will continue for quite some time given the fact that the average American Joe has no jingle in his pocket. Every reputable economist going says that the stimulus was too small for job creation and I feel too big on corporate and big bank bailouts. Add to this a Republican Party that in spite of being responsible for our predicament has tried to scuttle the recovery at every turn and you get the sense that our goose is cooked. Their latest bit of political blackmail will surely push us right over the brink. We've suffered through the worst economic disaster since the Great One. That trickle down bull just don"t work. Bring on some real jobs bills now. William Peter Bertier Juiz de Fora Brasil
No matter how much lipstick the Repubs are trying to put on the tax cut pig, it's still an ugly animal. The fact is, the tax cuts have not created any jobs. If they had, the Repubs would have actual facts to be touting instead of unsubstantiated rhetoric. If this country ever does turn over to socialism, it will be as a result of the Republican's social/economic policies that favor the wealthy and corporations. Sooner or later, the oppressed will and do revolt.
No Harvard MBA is needed for this problem. A shrunken middle-class means it will take longer for umemployment rates to fall and the economy to return to 2007 levels. Easy huh!
No manufacturing, weakened small businesses and the inability of any economy to step-up to the plate on this lovely planet simply drags this protracted recession beyond historical norms.
The econ-types need to write new books for a new century. Go figure.
Thank you.
Jack;
This is an orchestrated financial "collapse" of America. Those at the IMF and World Bank, EU, Obama et al already have a solution in mind. But first, they need to reduce America to a position it can be manipulated to conform with a world financial system. It's all part of the plan.
Evan
As long as CEO pay is tied to stock options there will be no incentive for corporations to hire workers. The easiest cost to control is the work force and with that cost remaining low by not hiring, then profits remain high and so does the corporate stock price.
On December 13, 2009, Lawrence Summers, obama's chief economic advisor told us that the recession was over.
You don't suppose we were lied to, do you?
Well he should know as he's partly responsible for the mess we are in but then so are both parties going back to the 80's. We didn't get here over night and it will take decades to reverse course. Even longer if the current entitlement mentality stays in place.
I am just waiting for Jack Daniel's to be made in China!
Jack,
The GOP garbage mantra is that raising taxes on big business and millionaires wont create jobs. The millionaires arent creating jobs NOW, they're just sitting on their wealth as Wall St continues to fatten their pocketbooks. Can we even trust the rich with their own money? GOP ran on jobs, do we trust them now? No and no.
-Matt
Secretary Geither has his opinion as to what might occur should the country default, and that's his right. What he hasn't said are what actions he has taken, in anticipation of a defaul; nor has he given a true assessment of what will occur in the event of a default. No one knows whose right, or whose wrong; what we do know is they're not being honest and truthful by anyone standards. What's truly sad is we, the American people, accept this nonsense as business as usual and no one pays a price. Secretary Geithne sat as the head of the NY Fed well before and during the financial crisis; he had oversight responsibility for the stupidity that was reigning on Wall Street, and he did nothing. He said nothing then, and he's saying nothing now; how convenient. Has anyone asked him if he's filed his tax returns for the last three years?
'Hard times for some time to come'? Compared to what, the barrel of fun the economy has been for the last three years? Can Geithner be that completely removed from reality?
Simple Jack. Get rid of all the politicians that have the self centered “it’s all about me” attitude and replace them with folks who have a genuine interest in the USofA (aka non-politicians). That should take care of about 95% or so of the problems.
Most Politicians, in my opinion, do not care about the people that elected them. They just pay lip service to us to get elected. If they did care, why would they make millions upon millions of people continually worry about our future. For the most part the politicians are nothing more than glorified selfish children that don’t give a damn about anything but themselves and what they can brag about during the next election.
Jack,
Unfortunately he is right. We will see hard times for some time to come.
The Republicans have brainwashed themselves into thinking that tax cuts will solve our economic woes. Even David Stockman, the architect of Ronald Reagan's "trickle down economics" theory wrote:
"This debt explosion has resulted not from big spending by the Democrats, but instead the Republican Party’s embrace, about three decades ago, of the insidious doctrine that deficits don’t matter if they result from tax cuts."
He went on to write: "Through the 1984 election, the old guard earnestly tried to control the deficit, rolling back about 40 percent of the original Reagan tax cuts. But when, in the following years, the Federal Reserve chairman, Paul Volcker, finally crushed inflation, enabling a solid economic rebound, the new tax-cutters not only claimed victory for their supply-side strategy but hooked Republicans for good on the delusion that the economy will outgrow the deficit if plied with enough tax cuts."
It doesn't take a Nobel Laureate in economics to see that revenue increases must be part of the debt reduction package. But with their no tax pledge, Republicans have painted themselves into a corner and have no way out politically. Our economy will remain sluggish. We can only pray that some Republicans on Capitol Hill will meet President Obama halfway and put everything on the negotiation table.
18000 were created in June, while the federal government lost 14,000 jobs. now imagine how many more jobs there would be in June if the federal and state governments weren't cutting jobs.
Based on what I see in Washington, DC, the ELECTED politicians should be looking at the words in the Declaration of Independence instead of the words in the Constitution. They (Congress) need to look at the Depression year history so they understand the difference.
Jack,
America, both as a country and as individual citizens have gotten addicted to debt. Kicking an addiction is usually a slow and unpleasant process, and this will be no exception. But we've got to kick the habit, or the future will be much worse than our current situation.
A long as American jobs are being shipped overseas and people are still losing their homes to foreclosure at record numbers, these "hard times" are far from over.
I say we get on board this "Rapture" thing, get saved, be swept off this God forsaken planet, and leave the mess to our brilliant world leaders, backslidden church folks, and Bill Gates. As I rememeber my Sunday School lessons, it is impossible for a rich man to enter into heaven. Hey they'll need him and Murdock and all of them anyway. See ya!!
We could tax the rich at 90% and it would not fix our current problems. We simpley spend more than we have. It's called buying votes with tax dollars. It's also called unsustainable.
Maybe people should consider moving to a country where there are jobs. Leaving Europe for a better life sparked our immigration boom in the late 19th and early 20th centuries. We shouldn't think America is invincible of something like that happening.
GOP is so intent on defeating Obama that they are destroying the country to do it. They are threatening to take their toys and go home if they don't get their way; they can't go home fast enough for me.
Now we're terminating government employees (like myself) by the thousands, and we don't think thousands of private sector jobs that support what we do won't suffer soon after? Republicans set the perfect plan in motion to recapture the White House – destroy the economy. Hopefully there will be something left of America for them to claim as their prize.
Dave Chesson
Bellingham, WA
Soon to be unemployed state employee
Just reading all the comments I see that many still blame the Republicans and Bush over the economy. Obama gets another free pass once again. This will never be his economy. That's good news for Obama going into 2012..
Of course he is right......now that he is finally admitting the truth.
My own original prediction of improvement in the economy, now that we are 3 yrs. into the depression, was that no significant improvement would be likely before 2014. At this point, we are on target, for that date, or LATER!
I relocated to the Seattlle area from Arizona almost 2 years ago because of the declining job market in Arizona. While there are more jjob postings for the Seattle area, hiring seems to be moving at a snail's pace. I have worked as a contract employee until the contract expired 5 months ago. Like many, I cruise the internet 2-3 times a day looking for new job prospects. My wife is on a fixed income and I am currently collecting emergency unemployment benefits. Like others in the same situation, household finances are extremely tight with very little or no extra for recreation or dining out. Unfortunately, we have had to file bankruptcy in order to have money for just the basic essentials (housing lease, food, medical, gasoline, utilities). I think most Americans would like to see those millions of jobs that were shipped overseas brought back to the U.S. and put Americans back to work. This would increase the payroll tax dollars going to the federal government and would help in the effort to decrease the national debt. I'm all for increasing the tax base of the wealthy and putting tax penalties on companies who put American jobs overseas. It's time for the American people to take back what's rightfully ours.
And it is for this reason we cannot cut all government spending – it makes no sense. Instead, we need to adjust our priorities and invest in an infrastructure that supports education at all levels. Many of the the 9.2% that are unemployed need to receive training in a field that is growing (solar, technology etc). Yet, they are unable to receive the training because we are cutting educational funding. Community colleges need to be enhanced not cut. Federal and state job training needs to be a priority......we never seem to be able anticipate our future needs and invest accordingly!...we always are doing things "after the fact"...I guess we will never learn...a pity!
I work for a company who is hiring European engineers for American jobs, in America. They have been laying off American engineers and other American employees for years and transferring the jobs to Europe. Most recently they have been laying off American employees in America and transferring English, Indian and other nationality employees to replace those American employees in America. Don't say it isn't so either because I work just down the hall from them. Those other countries protect their workers from such tactics and even from lay offs. Our government needs to wake up and smell the coffee! It is not the Democrats or the Republicans, but both! The wealthy bankers, corporate owners, corporate CEO's and others who are becoming wealthy off of the middle classes misery and sweat. I don't believe that our government officials really care!
Yes geitner is right hard times are ahead for main street but only because geithner, bernancke and obama are owned by wall street.
Probably. From what I understand about economics, anything we do to address the deficit – either by raising taxes or cutting government spending – is going to have a negative effect on the economy and on jobs. We're pretty much just making the same mistake the Japanese did during their housing crisis in the 1990's. Still, if everyone is freaking out about the deficit - what else are you going to do? Might as well get this over with, I guess...