Unemployment effects you

An excellent piece on how long term unemployment hurts all of us; even those of us with jobs........

Today in America, more than six people are competing for every one open job. There's a good chance your boss could fire you tomorrow and replace you with someone who'd be happy to do your job for less.

Your boss probably won't do that. It's too much trouble to train the replacement. But your annual raise (if any) will probably be less than the rate of inflation (in effect a pay cut). You might be required to take furlough days (another way to cut pay) or accept a reduction in benefits (a pay cut).

Such is the corrosive effect of a high rate of unemployment. With the supply of willing workers exceeding the demand for their labor, a downward pressure on wages and salaries is inevitable. Pay scales in entire sectors of the economy are probably too high to be sustained.

That's why unemployment isn't a problem just for the unemployed. It affects everyone who works for a paycheck. If it continues long enough, high unemployment will drive down pay across the board, and with it the American standard of living.

It might be happening already.

Read the rest here....