Jobs in state and local government will plunge after January...when the Tea Party takes over...after all that is what they are all about...cutting government...
This will put millions of teachers, fire and police, library workers, road maintenance people and others in the unemployment lines...
And these are good living wage jobs with benefits...not just laying off the seasonal temps at JC Penney...!
At this point it makes no difference who is running things...the system is structurally damaged... There is no production...that was fine as long as the bubbles lasted...but now the bubbles are done...
Likely the FED will print and print until the hyperinflation kicks it... The inflation will be in oil prices first and spread into the general economy like wild fire...just like in the 70's...
Obviously for structural reasons it won't come in higher wages...!!
I look for 2011 to be a year of extreme economic dislocation...and I welcome the Tea Party and Republican input as the disaster unfolds...after all Wall Street is at the root of this Depression...
In 2012...I would expect a more serious collapse...as EVERYONE realizes that we aren't in Kansas anymore...and the system is really beyond right and left wing blather...
The good part...?
The US still has the essential resources, the critical mass... to establish a pretty decent Social Democratic Economy...like Europe has...
Europe will lead the way on this for the US...which will still be reeling from the Tea Party nonsense...
Remember... the grown ups still run things in Euroland ... and in the UK...a very mature and well reasoned approach...to wit: No screaming blonds!!
So... Some recovery...IF...
If only we can get the Billionaires and their Dupes in the Tea Party ON BOARD FOR DOING WHAT NEEDS TO BE DONE...
The coming changes will be massive and structural...restoration of industry...some degree of protection for America's "new productive sector"...single payer health care...graduated taxes on those benefiting most from the system...gaunateed pensions for the older people...some level of consumer and evironmental protection...government funding for fundamental research in science and technology...etc.
