Tom Engelhardt 61

June 3, 2014
Tomgram: Peter Van Buren, A Rising Tide Lifts All Yachts

The drumbeat of “good news” has been steady these past few months: the American economy is in recovery. Consumer confidence is up. Manufacturing is expanding. There are signs the housing market is on the "verge of a rebound." In April, the unemployment rate dropped to 6.3% -- the lowest it's been since President Barack Obama took office.

Break down those unemployment numbers, though, and you get quite a different perspective on the American economy. One reason the unemployment rate fell was because the workforce participation rate -- the number of Americans working or looking for work -- decreased by nearly a million people. Many of them just packed up their hopes and went home to join the ranks of the officially uncounted jobless of this country. Why? Partially because Republicans in Congress refused to renew federal unemployment benefits for the long-term jobless -- those who have been out of work for 27 weeks or more. The government requires unemployed Americans to prove that they are actively searching for work in order to be eligible for unemployment insurance. Once that motivation (and the financial means of transportation to job interviews) disappeared, many discouraged workers simply gave up looking.

At the beginning of 2014, Democrats made a big push to renew those benefits, which average $1,166 a month and kick in after the usual 26 weeks of state unemployment benefits run out.  They had been renewed yearly since the beginning of the recession -- until last December, that is. Republicans promptly pushed back, demanding that any further aid for the out-of-work be "offset" by spending cuts elsewhere. In April, the impasse seemed to break when the Senate surprisingly passed a bipartisan bill to extend the emergency benefits. Since the legislation had GOP support, it was expected to pass the Republican-dominated House. House Speaker John Boehner, however, rejected it and the news cycle moved on.

The 3.5 million long-term jobless are still here though, crashing on the couches of family members or friends, struggling to feed their kids, unable to afford gas to get to those job interviews that are seldom to be found anyway. Today, former State Department whistleblower Peter Van Buren, who has been following the fate of the 99% for TomDispatch and whose new book on the subject, Ghosts of Tom Joad, has just been published, takes a look at why it's so hard for the long-term unemployed to get back to work. He also answers questions about why the American economy doesn't work for those at the bottom, no less the sinking middle class. Erika Eichelberger

Why Don’t the Unemployed Get Off Their Couches? 
And Eight Other Critical Questions for Americans 
By Peter Van Buren
Last year eight Americans -- the four Waltons of Walmart fame, the two Koch brothers, Bill Gates, and Warren Buffett -- made more money than 3.6 million American minimum-wage workers combined. The median pay for CEOs at America's large corporations rose to $10 million per year, while a typical chief executive now makes about 257 times the average worker's salary, up sharply from 181 times in 2009. Overall, 1% of Americans own more than a third of the country’s wealth.
As the United States slips from its status as the globe's number one economic power, small numbers of Americans continue to amass staggering amounts of wealth, while simultaneously inequality trends toward historic levels. At what appears to be a critical juncture in our history and the history of inequality in this country, here are nine questions we need to ask about who we are and what will become of us. Let's start with a French economist who has emerged as an important voice on what’s happening in America today.
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