Moral Outrage
Whew! God help us!

IMF warns of explosion of social unrest in the U.S. and Europe

America and Europe face the worst jobs crisis since the 1930s and risk “an explosion of social unrest” unless they tread carefully, the International Monetary Fund has warned. [Similar to earlier warning by Moody’s]

“The labor market is in dire straits. The Great Recession has left behind a waste land of unemployment,” said Dominique Strauss-Kahn, the IMF’s chief, at an Oslo jobs summit with the International Labor Federation (ILO).

He called it a grave error to think the West was safe again after teetering so close to the abyss last year. “We are not safe,” he said. A joint IMF-ILO report said 30m jobs had been lost since the crisis, three quarters in richer economies. Global unemployment has reached 210m. “The Great Recession has left gaping wounds. High and long-lasting unemployment represents a risk to the stability of existing democracies,” it said.

The study cited evidence that victims of recession in their early twenties suffer lifetime damage and lose faith in public institutions. A new twist is an apparent decline in the “employment intensity of growth” as rebounding output requires fewer extra workers. As such, it may be hard to re-absorb those laid off even if recovery gathers pace. The world must create 45m jobs a year for the next decade just to tread water.

Olivier Blanchard, the IMF’s chief economist, adds, “Long-term unemployment is alarmingly high: in the US, half the unemployed have been out of work for over six months, something we have not seen since the Great Depression.”

[The Telegraph]


4 Responses to “IMF warns of explosion of social unrest in the U.S. and Europe”

  1. The American Government can put People back to work by putting out both Civilian and Military Contracts will Employ more People. That will connect people to the Healthcare networks as well as pay for schools and the labor market will respond in a positive way till the Markets are able to respond to the re-employment of the workforce and developpe jobs for the newly trained and recently experienced Public whom would be looking for a better job or one that is more favorable to their needs. It would strengthen Our Economy too. There is plenty to do if we take a Rosevelt approach to un-employment.

  2. September 29 news:

    Thousands of workers from across Europe have taken to the streets to protest against a growing number of austerity measures adopted by governments to combat public deficit crises.

    Police barricaded banks and shops in Brussels, the headquarters of the European Union, where labor leaders estimated 100,000 people turned out; other estimates placed the turnout closer to 60,000.

    Strikes and demonstrations over austerity measures were also held in Spain, Greece, Portugal, Slovenia, Poland, Italy, Serbia and Ireland.

    Europe lost millions of jobs during the financial crisis, and more look set to vanish as public sectors across the region are shrunk by debt-laden governments eager to save money.

  3. […] to control domestic political policy, the next phase of this crisis will inevitably feature an escalation into mass violence. As the Army War College stated, the Pentagon is preparing for “violent, strategic dislocation […]

  4. […] was the first IMF director in my lifetime, if memory serves, who disavowed the traditional IMF policy of imposing on the poor and ordinary people the cost of bailing out Wall Street and the Western […]

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