UNDEREMPLOYMENT - is a key issue that many analysts seem to overlook or just don’t add into their formulas.
By Daniel at 28 November, 2009, 8:28 pm
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There has been a lot of abuse of the H1B Visa program and many companies have become addicted to the cheap skilled labor that has been dumped into this country.
No statistic is being kept on those that are skilled but not employed in their field. I know many people that are degreed and highly skilled that have been replaced in the last 6-8 years.
Take people that have lost jobs paying $80K-$120K and can only find jobs paying a lot less ($35K -$50K) and you have the basis for many of the resulting problems in the mortgage and credit areas.
There is no mystery or complex answer about the downward spiral. People who have gotten into a lesser-paying job cannot spend as much, they run up their credit cards thinking it is a temporary setback and they cannot continue their mortgage payments. Funny, I never see all of this major shift charted in any graph.
70% of it is consumer driven
Well, don’t expect the consumer to buy us out of this one. Many are not making what they used to make.
- JAMES CARLINI
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