It is not just the vultures and bone pickers but there are many who have gained from the foreclosure crisis in a proper way. The point to note is that there has been a falling in the numbers being hired – it being greater than the number of layoffs. Another point is that inflation being low the purchasing power of existing wages has gone up.
It is the local and state governments that have sliced wages but those companies running their show have passed on their impressive gains to the workers that are employed. With inflation contained the real wages fell only briefly.
If inflation gains then there will be pay cuts. Thus the situation is that the typical person without a job has been idle for over six months while the typical worker has enjoyed a raise in pay.
The manufacturing zones like Rhode Island, Ohio and Michigan and the housing bubble zones like Nevada, California and Florida have been the worst hit by the foreclosure crisis. The least affected have been North and South Dakota, Minnesota, Texas and Louisiana. This group has also emerged from the crisis the fastest.
This outline explains party why the Senate has been slow in extending help to the economy. The size of the population is small in many of these healthy states and consequently their political clout is also big. In Nebraska the rate of unemployment is 4.8%. Here for every 900,000 there is one senator. In Florida where the rate of unemployment is 11.4% there is for every 9 million one senator.
During the initial two years of the recession it was the blue collar that was disproportionately affected. During 2008 and 2009 25% jobs vanished from the construction sector and 16% from the manufacturing sector.
But 2010 is seeing an increase in jobs in the manufacturing sector dealing with durable stuff like machinery and computers. Retailers too are generating jobs albeit at a slow pace. Consumer spending is pulling back the speed of recovery.
The downturn has seen a shift from the blue to the white collar work force. Male employment has increased by nearly one million so far in 2010 but female employment has dropped by 300,000. The employment for those who have never been to college has gone up and it has fallen among those who entered college. But from an overall point of view the downturn has been crueler on those who are less educated.