The Beginning Of The End
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The Robots Are Coming, And They Are Replacing Warehouse Workers And Fast Food Employees

Robot 2014There are already more than 101 million working age Americans that are not employed and 20 percent of the families in the entire country do not have a single member that has a job.  So what in the world are we going to do when robots start taking millions upon millions more of our jobs? Thanks to technology, the balance of power between employers and workers in this country is shifting dramatically in favor of the employers.  These days, many employers are wondering why they are dealing with so many human worker “headaches” when they can just use technology to get the same tasks done instead.  When you replace a human worker with a robot, you solve a whole bunch of problems.  Robots never take a day off, they never get tired, they never get sick, they never complain, they never show up late, they never waste time on the Internet and they always do what you tell them to do.  In addition, robotic technology has advanced to the point where it is actually cheaper to buy robots than it is to hire humans for a vast variety of different tasks.  From the standpoint of societal efficiency, this is a good thing.  But what happens when robots are able to do just about everything less expensively and more efficiently than humans can?  Where will our jobs come from?

And this is not something that is coming at some point in “the future”.

This is already happening.

According to CNN, there will be 10,000 robots working to fulfill customer orders in Amazon.com warehouses by the end of 2014…

Amazon will be using 10,000 robots in its warehouses by the end of the year.

CEO Jeff Bezos told investors at a shareholder meeting Wednesday that he expects to significantly increase the number of robots used to fulfill customer orders.

Don’t get me wrong – I absolutely love Amazon.  And if robots can get me my stuff faster and less expensively that sounds great.

But what if everyone starts using these kinds of robots?

What will that do to warehouse jobs?

PC World has just done a report on a new warehouse robot known as “UBR-1″.  This robot is intended to perform tasks “normally done by human workers”…

The UBR-1 is a 4-foot tall, one-armed robot that could make warehouses and factories more efficient by performing tasks normally done by human workers.

Unlike the industrial robots widely used in manufacturing today—usually large machines isolated from people for safety reasons—this robot can work alongside humans or autonomously in a workspace filled with people.

This little robot costs $50,000, and it can work all day and all night.  It just needs a battery change every once in a while.  The creators of this robot envision it performing a vast array of different tasks…

“We see the robot as doing tasks, they could be dull, they could be dirty, they could be dangerous and doing them repetitively all day in a light manufacturing environment,” said Melonee Wise, Unbounded Robotics CEO and co-founder. Those tasks include stocking shelves, picking up objects and assembling parts.

The UBR-1 isn’t designed for small component assembly, but it can manipulate objects as small as dice or a Lego piece, Wise said. Unbounded Robotics is targeting companies that want some automation to speed up their manufacturing process, but can’t afford to fully automate their businesses.

To many people this may sound very exciting.

But what if a robot like that took your job?

Would it be exciting then?

Of course you can’t outlaw robots.  And you can’t force companies to hire human workers.

But we could potentially have major problems in our society as jobs at the low end of the wage scale quickly disappear.

According to CNN, restaurants all over the nation are going to automated service, and a recent University of Oxford study concluded that there is a 92 percent chance that most fast food jobs will be automated in the coming years…

Panera Bread is the latest chain to introduce automated service, announcing last month that it plans to bring self-service ordering kiosks as well as a mobile ordering option to all its locations within the next three years. The news follows moves from Chili’s and Applebee’s to place tablets on their tables, allowing diners to order and pay without interacting with human wait staff at all.

Panera, which spent $42 million developing its new system, claims it isn’t planning any job cuts as a result of the technology, but some analysts see this kind of shift as unavoidable for the industry.

In a widely cited paper released last year, University of Oxford researchers estimated that there is a 92% chance that fast-food preparation and serving will be automated in the coming decades.

It is being projected that other types of jobs will soon be automated as well

Delivery drivers could be replaced en masse by self-driving cars, which are likely to hit the market within a decade or two, or even drones. In food preparation, there are start-ups offering robots for bartending and gourmet hamburger preparation. A food processing company in Spain now uses robots to inspect heads of lettuce on a conveyor belt, throwing out those that don’t meet company standards, the Oxford researchers report.

Could you imagine such a world?

When self-driving vehicles take over, what will happen to the 3.1 million Americans that drive trucks for a living?

Our planet is changing at a pace that is almost inconceivable.

Over the past decade, the big threat to our jobs has been workers on the other side of the globe that live in countries where it is legal to pay slave labor wages.

But now even those workers are having their jobs taken away by robots.  For example, just check out what is happening in China

Foxconn has been planning to buy 1 million robots to replace human workers and it looks like that change, albeit gradual, is about to start.

The company is allegedly paying $25,000 per robot – about three times a worker’s average salary – and they will replace humans in assembly tasks. The plans have been in place for a while – I spoke to Foxconn reps about this a year ago – and it makes perfect sense. Humans are messy, they want more money, and having a half-a-million of them in one factory is a recipe for unrest. But what happens after the halls are clear of careful young men and women and instead full of whirring robots?

Perhaps you think that your job could never be affected because you do something that requires a “human touch” like caring for the elderly.

Well, according to Reuters, robots are moving into that arena as well…

Imagine you’re 85, and living alone. Your children are halfway across the country, and you’re widowed. You have a live-in aide – but it’s not human. Your personal robot reminds you to take your medicine, monitors your diet and exercise, plays games with you, and even helps you connect with family members on the Internet.

And robots are even threatening extremely skilled professions such as doctors.  For instance, just check out this excerpt from a Bloomberg article entitled “Doctor Robot Will See You Shortly“…

Johnson & Johnson proposes to replace anesthesiologists during simple procedures such as colonoscopies — not with nurse practitioners, but with machines. Sedasys, which dispenses propofol and monitors a patient automatically, was recently approved for use in healthy adult patients who have no particular risk of complications. Johnson & Johnson will lease the machines to doctor’s offices for $150 per procedure — cleverly set well below the $600 to $2,000 that anesthesiologists usually charge.

And this is just the beginning.  In a previous article, I discussed the groundbreaking study by Dr. Carl Frey and Dr. Michael Osborne of Oxford University which came to the conclusion that 47 percent of all U.S. jobs could be automated within the next 20 years.

47 percent?

That is crazy.

What will the middle class do as their jobs are taken away?

The world that we live in is becoming a radically different place than the one that we grew up in.

The robots are coming, and they are going to take millions of our jobs.

So what do you think of this robot invasion?  Please feel free to share your thoughts by posting a comment below…

10 Amazing Charts That Demonstrate The Slow, Agonizing Death Of The American Worker

10 Amazing Charts That Demonstrate The Slow, Agonizing Death Of The American WorkerThe middle class American worker is in danger of becoming an endangered species.  The politicians are not telling you the truth, and the mainstream media is certainly not telling you the truth, but the reality is that there is nothing but bad news on the horizon for workers in the United States.  In the old days, when the big corporations that dominate our society did well, that also meant good things for American workers since those corporations would need more of us to work for them.  But in the emerging one world economic system that our economy is being merged into, those corporations have other choices now.  For instance, the big corporations can now choose to limit the number of “expensive” American workers that they employ by shipping millions of jobs to the other side of the world.  And from their perspective, it makes perfect sense.  They can make much bigger profits by hiring people on the other side of the planet to work for them for less than a dollar an hour.  If they can get good production out of those people, then why should they hire Americans for ten to twenty times as much, plus have to give those Americans health insurance and other benefits?  Another major factor in the slow, agonizing death of the American worker is technology.  We live during a period when technology is advancing at a pace that is almost unimaginable at the same time that it is steadily becoming cheaper and cheaper.  That means that it is going to become easier and easier for companies to replace workers with robots and computers.  As I have written about previously, it is being projected that our economy will lose millions of jobs to technology in the coming years.  Yes, some of us will still be needed to help build the robots and the computers, but not all of us will.  And of course the overall general weakness of the economy is not helping matters either.  The American people inherited the greatest economic machine in the history of the world, and we have wrecked it.  Decades of very foolish decisions have resulted in the period of steady economic decline that we are experiencing now.

America is simply not the economic powerhouse that it once was.  Back in 2001, the U.S. economy accounted for 31.8 percent of global GDP.  By 2011, the U.S. economy only accounted for 21.6 percent of global GDP.  That is a collapse any way that you want to look at it.

Today, American workers are living in an economy that is rapidly declining, and their jobs are steadily being stolen by robots, computers and foreign workers that live in countries where it is legal to pay slave labor wages.  Politicians from both political parties refuse to do anything to stop the bleeding because they think that the status quo is working just great.

So don’t expect things to get better any time soon.

The following are 10 amazing charts that demonstrate the slow, agonizing death of the American worker…

#1 Wages And Salaries As A Percentage Of GDP

Wages And Salaries As A Percentage Of GDP

As you can see, wages as a percentage of GDP are hovering near an all-time record low.  That means that American workers are bringing home a smaller share of the economic pie than ever before.

#2 Average Annual Hours Worked Per Employed Person In The United States

Average Annual Hours Worked per Employed Person in the United States

We are an economy that is rapidly trading good paying full-time jobs for low paying part-time jobs.  The decline in average annual hours worked that we have witnessed represents the equivalent of losing millions of jobs.  There has been an explosion of “the working poor” in the United States, and this trend is probably only going to accelerate in the years to come.

#3 Manufacturing Employment

Manufacturing Employment

As you can see, there are less Americans working in manufacturing today than there was in 1950 even though the population of the country has more than doubled since then.  The United States has lost more than 56,000 manufacturing facilities since 2001, and yet our politicians stand around and do nothing about it.

#4 Employment-Population Ratio

Employment-Population Ratio 2013

This is one of my favorite charts.  It shows that there has been absolutely no employment recovery at all since the end of the last recession.  The percentage of working age Americans that have a job has stayed under 59 percent for 44 months in a row.  How much worse will things get when the next major economic downturn strikes?

#5 Labor Force Participation Rate

Labor Force Participation Rate

This is how the Obama administration is getting the “unemployment rate” to magically go down.  They are pretending that millions upon millions of Americans simply do not want to work anymore.  As you will notice, the decline of the labor force participation rate has accelerated greatly since Barack Obama entered the White House.

#6 Duration Of Unemployment

Duration Of Unemployment

The average amount of time that it takes an unemployed worker to find a new job has declined slightly, but it is still far above normal historical levels.  It is a crying shame that it takes the average unemployed worker two-thirds of a year to find a new job, but this is the new economic reality that we are all living in.

#7 Delinquency Rate On Residential Mortgages

Delinquency Rate On Residential Mortgages

Since there are not enough jobs for all of us, and since our wages are not rising as rapidly as the cost of living is, a whole bunch of us are falling behind on our mortgages.  As you can see, the mortgage delinquency rate has only dropped slightly and is still way, way above typical levels.

#8 New Homes Sold

New Homes Sold

American workers also don’t have enough money to go out and buy new homes either.  Yes, new home sales have rebounded slightly this year, but we are nowhere near where we used to be.

#9 Consumer Credit

Consumer Credit

Millions of American families continue to resort to going into debt in a desperate attempt to make ends meet.  After a slight interruption during the last recession, consumer credit once again is growing at a frightening pace.

#10 Self-Employment At A Record Low

Self-Employed As A Share Of Non-Farm Employment

Since there aren’t enough jobs for everyone, why aren’t more Americans trying to start their own businesses?  Well, the reality of the matter is that the government has made it exceedingly difficult to start your own business today.  Taxes, rules, regulations and red tape are choking the life out of millions of small businesses in the United States.  As a result, the percentage of self-employed Americans is at a record low.

As all of these long-term trends continue, the middle class will continue to shrink, poverty in America will continue to explode and government dependence will continue to rise.

The numbers don’t lie.  Today, the number of Americans on Social Security Disability now exceeds the entire population of Greece, and the number of Americans on food stamps now exceeds the entire population of Spain.

We are in the midst of a horrifying economic collapse, and the next major wave of that collapse is rapidly approaching.

Are you ready?

Rise Of The Droids: Will Robots Eventually Steal All Of Our Jobs?

Rise Of The Droids: Will Robots Eventually Steal All Of Our Jobs? - Photo by stephen bowlerWill a robot take your job?  We have entered a period in human history when technology is advancing at an exponential rate.  In some ways, this has been a great blessing for humanity.  For example, I am absolutely blown away by all of the things that my little iPod can do.  But on the other hand, all of this technology is eliminating millions upon millions of high paying jobs.  In the past, I have written extensively about how millions of American jobs have been sent to the other side of the world, but now we may be moving into a time when workers all over the planet will be steadily losing jobs to super-efficient robots.  For employers, robots provide a lot of advantages to human workers.  Robots never complain, they never get tired, they never need vacation, they never show up late, they never waste time of Facebook, they don’t need any health benefits and there are a whole lot of rules, regulations and taxes that you must deal with when you hire a human worker.  In the past, robots were exceedingly expensive, and that limited their usefulness in the workplace, but as you will see later in this article that is rapidly changing.  As robots continue to become even more advanced and even less expensive, will there eventually come a point where the “human worker” is virtually obsolete?

Of course I can hear the objections already.  Many of you will insist that even though automation has always eliminated jobs in the past, it has also always created new jobs that were even better.  For instance, once upon a time most of the U.S. population worked on farms, but thanks to automation now hardly any of us do.

But what happens when we get to the point where super-intelligent robots are more efficient at everything?

What will be left for “human workers” to do?

And if human workers are no longer needed for most tasks, what will their role in society be?

Personally, I still complain about self-service check-in kiosks at airports and self-checkout lanes at supermarkets, but most people seem to have accepted them.  There are even many bank branches now that don’t have any humans in them at all.  The number of jobs where a human worker is absolutely “required” is dwindling all the time.

And a lot of the jobs that are disappearing thanks to advances in technology are fairly high paying jobs.  In fact, one recent study of employment data from 20 countries discovered that “almost all the jobs disappearing are in industries that pay middle-class wages, ranging from $38,000 to $68,000.”

As I mentioned earlier, in the past robots were simply far too expensive to perform most tasks.  So human workers had an advantage.

But that advantage is disappearing right in front of our eyes.  For example, one company has produced a new robot called “Baxter” that only costs $22,000.  The following is from an article about Baxter in the MIT Technology Review

Baxter was conceived by Rodney Brooks, the Australian roboticist and artificial-intelligence expert who left MIT to build a $22,000 humanoid robot that can easily be programmed to do simple jobs that have never been automated before.

Eventually, the goal is to produce versions of Baxter that will perform tasks even more cheaply than Chinese workers do…

Brooks’s company, Rethink Robotics, says the robot will spark a “renaissance” in American manufacturing by helping small companies compete against low-wage offshore labor. Baxter will do that by accelerating a trend of factory efficiency that’s eliminated more jobs in the U.S. than overseas competition has. Of the approximately 5.8 million manufacturing jobs the U.S. lost between 2000 and 2010, according to McKinsey Global Institute, two-thirds were lost because of higher productivity and only 20 percent moved to places like China, Mexico, or Thailand.

The ultimate goal is for robots like Baxter to take over more complex tasks, such as fitting together parts on an electronics assembly line. “A couple more ticks of Moore’s Law and you’ve got automation that works more cheaply than Chinese labor does,” Andrew McAfee, an MIT researcher, predicted last year at a conference in Tucson, Arizona, where Baxter was discussed.

So it won’t just be American workers that will be displaced by robots – it will literally be workers all over the planet.

In the future, when you call someone for customer service you probably won’t be talking to someone in India.  Instead, you will probably be talking to a robot.  In fact, this transition is already starting to happen…

IPsoft is a young company started by Chetan Dube, a former mathematics professor at New York University. He reckons that artificial intelligence can take over most of the routine information-technology and business-process tasks currently performed by workers in offshore locations. “The last decade was about replacing labour with cheaper labour,” says Mr Dube. “The coming decade will be about replacing cheaper labour with autonomics.”

IPsoft’s Eliza, a “virtual service-desk employee” that learns on the job and can reply to e-mail, answer phone calls and hold conversations, is being tested by several multinationals. At one American media giant she is answering 62,000 calls a month from the firm’s information-technology staff. She is able to solve two out of three of the problems without human help. At IPsoft’s media-industry customer Eliza has replaced India’s Tata Consulting Services.

Even some of the largest companies in China are starting to make the transition from human workers to robots.  The following is from a recent TechCrunch article

Foxconn has been planning to buy 1 million robots to replace human workers and it looks like that change, albeit gradual, is about to start.

The company is allegedly paying $25,000 per robot – about three times a worker’s average salary – and they will replace humans in assembly tasks. The plans have been in place for a while – I spoke to Foxconn reps about this a year ago – and it makes perfect sense. Humans are messy, they want more money, and having a half-a-million of them in one factory is a recipe for unrest. But what happens after the halls are clear of careful young men and women and instead full of whirring robots?

So what will the world look like as robots begin to replace humans in just about every industry that you can imagine?

A recent Wired article described what this transition might look like…

First, machines will consolidate their gains in already-automated industries. After robots finish replacing assembly line workers, they will replace the workers in warehouses. Speedy bots able to lift 150 pounds all day long will retrieve boxes, sort them, and load them onto trucks. Fruit and vegetable picking will continue to be robotized until no humans pick outside of specialty farms. Pharmacies will feature a single pill-dispensing robot in the back while the pharmacists focus on patient consulting. Next, the more dexterous chores of cleaning in offices and schools will be taken over by late-night robots, starting with easy-to-do floors and windows and eventually getting to toilets. The highway legs of long-haul trucking routes will be driven by robots embedded in truck cabs.

All the while, robots will continue their migration into white-collar work. We already have artificial intelligence in many of our machines; we just don’t call it that. Witness one piece of software by Narrative Science (profiled in issue 20.05) that can write newspaper stories about sports games directly from the games’ stats or generate a synopsis of a company’s stock performance each day from bits of text around the web. Any job dealing with reams of paperwork will be taken over by bots, including much of medicine. Even those areas of medicine not defined by paperwork, such as surgery, are becoming increasingly robotic. The rote tasks of any information-intensive job can be automated. It doesn’t matter if you are a doctor, lawyer, architect, reporter, or even programmer: The robot takeover will be epic.

I don’t know about you, but the phrase “robot takeover” is not exactly comforting.

Perhaps I just watch too many movies.

In any event, as technology advances there will eventually be very few jobs that robots cannot perform.  In fact, you might be surprised to learn some of the things that robots are already doing.  The following is from a recent Yahoo News article

Google and Toyota are rolling out cars that can drive themselves. The Pentagon deploys robots to find roadside explosives in Afghanistan and wages war from the air with drone aircraft. North Carolina State University this month introduced a high-tech library where robots — “bookBots” — retrieve books when students request them, instead of humans. The library’s 1.5 million books are no longer displayed on shelves; they’re kept in 18,000 metal bins that require one-ninth the space.

So what will the 3.1 million Americans that drive trucks do for a living once robots are driving all of our trucks?

What will the 573,000 Americans that drive buses do for a living once robots are driving all of our buses?

And eventually even our skies may be filled with robotic drones that are busy performing one task or another.  Just check out what a recent Time Magazine article had to say about the emerging drone industry…

But the drone industry is ramping up for a big landgrab the moment the regulatory environment starts to relax. At last year’s Association for Unmanned Vehicle Systems International (AUVSI) trade show in Las Vegas, more than 500 companies pitched drones for filming crowds and tornados and surveying agricultural fields, power lines, coalfields, construction sites, gas spills and archaeological digs. A Palo Alto, Calif., start-up called Matternet wants to establish a network of drones that will transport small, urgent packages, like those for medicine.

In other countries civilian drone populations are already booming. Aerial video is a major application. A U.K. company called Skypower makes the eight-rotored Cinipro drone, which can carry a cinema-quality movie camera. In Costa Rica they’re used to study volcanoes. In Japan drones dust crops and track schools of tuna; emergency workers used one to survey the damage at Fukushima. A nature preserve in Kenya ran a crowdsourced fundraising drive to buy drones to watch over the last few northern white rhinos. Ironically, while the U.S. has been the leader in sending drones overseas, it’s lagging behind when it comes to deploying them on its own turf.

Unfortunately, many people will not understand what I am really trying to get at in this article.

They will just say something like this: “Well, they are going to need someone to build all of those robots.”

Even if that is true, they won’t need hundreds of millions of us to build them.

No, the truth is that when human workers become “obsolete”, those that dominate society with technology will look at the rest of us as “useless eaters” that are not contributing anything to society at all.

Already, there are many economists that are warning that advancements in technology are steadily reducing “the natural employment rate”.

And we are already seeing this happen in the United States.  As I wrote about the other day, the percentage of the labor force that is employed has declined every single year since 2006…

2006: 63.1

2007: 63.0

2008: 62.2

2009: 59.3

2010: 58.5

2011: 58.4

In January, only 57.9 percent of the civilian labor force was employed.

Of course there are certainly a lot of factors involved in why those numbers are declining, but without a doubt technology is playing a role.

So what do we do with all of the workers that are being displaced?

Are we just going to put everybody on food stamps?

Will the gap between the rich and the poor grow even larger than it is today?

Will most people eventually become dependent on the government in order to survive?

We are moving into uncharted territory, and nobody is quite sure what comes next.

As time goes by, robots will even start to look more like us.  In fact, this is already starting to happen.  Just check out the following description of a “bionic man” that has been created from a recent article in the Guardian

He cuts a dashing figure, this gentleman: nearly seven feet tall, and possessed of a pair of striking brown eyes. With a fondness for Ralph Lauren, middle-class rap and sharing a drink with friends, Rex is, in many ways, an unexceptional chap.

Except that he is, in fact, a real-world bionic man. Housed within a frame of state-of-the-art prosthetic limbs is a functional heart-lung system, complete with artificial blood pumping through a network of pulsating modified-polymer arteries. He has a bionic spleen to clean the blood, and an artificial pancreas to keep his blood sugar on the level. Behind the deep brown irises are a pair of retinal implants, giving him a vista of the crowds of curious humans who meet his gaze.

He even has a degree of artificial intelligence: talk to him, and he’ll listen (through his cochlear implants), before using a speech generator to respond.

As robots become more like us, will we eventually become more like them?

Will we be told that we must “merge with the machines” in order to keep up and be useful in society?

As we rapidly approach the “technological singularity” that futurist Ray Kurzweil and others have talked about, will humans increasingly seek to “enhance” themselves with technology in an attempt to “get an edge”?

What will happen to those of us that refuse to “merge with the machines” and that refuse to “enhance ourselves” with technology?

Will we be outcasts?

Those are some important questions.  Feel free to share your thoughts on those questions by posting a comment below…

Terminator - Photo by tenaciousme

Unemployment Is Not Going Down: The Employment Rate Has Been Under 59 Percent For 39 Months In A Row

The mainstream media is heralding the decline of the official unemployment rate to 7.7 percent as evidence that the U.S. economy is improving.  But it is a giant lie.  The truth is that unemployment in America is not actually going down.  The percentage of working age Americans with a job actually dropped slightly in November.  During the last recession, the percentage of working age Americans with a job fell from about 63 percent to under 59 percent and it has stayed there for 39 months in a row.  In September 2009, during the depths of the last economic crisis, 58.7 percent of all working age Americans were employed.  In November 2012, 58.7 percent of all working age Americans were employed.  It is more then 3 years later, and we are in the exact same place!  So how in the world are they able to pretend that the “unemployment rate” is going down steadily?  Well, they get there by pretending that hundreds of thousands of unemployed workers “leave the labor force” each month.  According to the government, another 350,000 Americans left the labor force during November, and when you keep pretending that huge chunks of workers “disappear” each month it is easy to get the “unemployment rate” to go down.  But any idiot can see that there is something really funny about these numbers.  Barack Obama has been president for less than four years, and during that time the number of Americans “not in the labor force” has increased by nearly 8.5 million.  Something seems really “off” about that number, because during the entire decade of the 1980s the number of Americans “not in the labor force” only rose by about 2.5 million.  At this point the official unemployment rate is so manipulated that it is of very little value at all.

But the mainstream media is just eating up this “good news”.  They are very excited that the “unemployment rate” has fallen from its peak of 10.0 percent in October 2009 to 7.7 percent now…

But if unemployment was actually going down, we should be seeing the percentage of Americans with a job go up.

Unfortunately, that is NOT happening.

As I mentioned above, the “employment rate” fell below 59 percent during the last economic crisis and it has stayed there for 39 consecutive months…

So all of that stuff about the employment situation getting better is just a load of nonsense.  The percentage of Americans with a job has stayed very, very steady since the end of 2009.  It is almost as if someone has hit a “pause button” and won’t let unemployment get better or get worse.

This is the first time since the end of World War II that we have not seen the employment-population ratio bounce back in a significant way after a recession has ended.

To me, that is a very bad sign.

I also find it very interesting that the government revised the “job gains” for September and October downward in this recent report…

The government revised down job gains for September and October by a total 49,000. September’s additions were revised from 148,000 to 132,000 and October’s, from 171,000 to 138,000.

So it turns out that the glowing employment reports from those months that helped get Obama re-elected were really not that great after all.

The truth is that it takes somewhere between 100,000 and 150,000 new jobs a month just to keep up with the growth of the population.  So at best we are treading water.

And who is “creating” those new jobs?

According to an analysis performed by CNSNews.com, 73 percent of the jobs “created” over the past 5 months have been “created” by government.

But government does not create real wealth.

Real wealth is only created by the private sector.

It would be very nice if I could report a major employment turnaround, but it simply is not happening.

Instead, we continue to see an increase in the number of Americans living in poverty.

If things are getting better, then why are organizations like the Salvation Army seeing record numbers of families coming to them for help this holiday season?

For much more on the continued growth of poverty in the United States, just see this article.

Sadly, an increasing number of Americans find themselves forced to turn to the government for assistance, and the cost of caring for all of them has become extremely expensive

According to the Republican side of the Senate Budget Committee, welfare spending per day per household in poverty is $168, which is higher than the $137 median income per day. When broken down per hour, welfare spending per hour per household in poverty is $30.60, which is higher than the $25.03 median income per hour.

But if you think that things are bad now, you should brace yourself, because things are going to get even worse.

For example, how much worse will things get if a fiscal cliff deal is not reached and millions more Americans find themselves in desperate need of help?  According to ABC News, more than 3 million Americans will lose unemployment benefits by the beginning of April if Congress does not do something…

Millions of unemployed Americans have another reason to worry about “fiscal cliff” budget talks that seek to avoid looming tax increases and dire spending cuts come January.

About 2.1 million people will stop receiving jobless benefits immediately if Congress doesn’t reauthorize federal unemployment insurance programs by year’s end. Another 1 million will lose benefits over the first three months of 2013.

2013 is already shaping up to be a very tough year.

But the mainstream media is not really talking about how the middle class is systematically being destroyed or about how our once great manufacturing cities are being turned into desolate wastelands.

They just want us all to be happy, but the cold, hard reality of the matter is that the U.S. economy no longer produces enough jobs for everybody and it never will again.

Both of our major political parties have fully embraced the emerging one world economic system which puts average American workers into direct competition for jobs with workers in third world countries where it is legal to pay slave labor wages.

Millions of good paying American jobs have been shipped to countries where workers work very long hours in absolutely horrific conditions for as little as 45 dollars a month.

Are you willing to work for 45 dollars a month?

Meanwhile, Americans that still do have jobs are piling up more debt than ever before.  It appears that most people have not learned any lessons from the last major economic crisis.  It has just been reported that consumer borrowing in the United States has hit a new record high

Americans swiped their credit cards more often in October and borrowed more to attend school and buy cars. The increases drove U.S. consumer debt to an all-time high.

The Federal Reserve said Friday that consumers increased their borrowing by $14.2 billion in October from September. Total borrowing rose to a record $2.75 trillion.

Isn’t that lovely?

And of course the biggest offender of all is our federal government.  They just keep borrowing money as if there was no tomorrow.

During the first two months of fiscal year 2013, the U.S. government has run a deficit of $292 billion dollars ($57 billion worse than last year) and during that time it has borrowed an average of $4.8 billion dollars a day.

30 years ago, the U.S. national debt was about 1.1 trillion dollars.

Now it is more than 16.3 trillion dollars.

To get an idea how much money 16 trillion dollars is, just watch this 2 minute video.

How could we be so stupid?

Yes, much of America is still experiencing “prosperity” right now.  But it is a prosperity that has been fueled by the greatest debt bubble that the world has ever seen.

When that debt bubble bursts the pain is going to be unbelievable.

If you actually believe that America is going to prosper in the years to come, you are just fooling yourself.

Our economy is declining and has been declining for quite some time.  If you doubt this, just read this: “34 Signs That America Is In Decline“.

So that is the bad news.

But the good news is that even though the entire nation is not going to prosper, there will be those that will have prepared and that will have gotten themselves into position to take advantage of what is coming.  During the coming crisis a massive amount of money and wealth will change hands.  Instead of living in fear and cowering under a blanket, now is the time to figure out how you and your family can thrive during the hard times that are on the horizon.

During the economic crisis of 2008 and 2009, there were some people that actually did amazingly well.  So don’t lose hope just because the U.S. economy is headed for disaster.

Everything that can be shaken will be shaken.  But if you understand what is happening and you prepare for it, the times that are coming can actually be a great adventure and a great blessing for you and your family.

But if you just stick your head in the sand and have blind faith in the system and pretend that everything is going to be okay somehow, then you will be blindsided by the coming crisis and you will only have yourself to blame.

Will The Bottom Fall Out? 15 Signs That Layoffs And Job Losses Are Skyrocketing

If you still have a good job, you might want to hold on to it very tightly because there are a whole bunch of signs that unemployment in the United States is about to start getting worse again.  Over the past several weeks, a substantial number of large corporations have announced disappointing earnings for the third quarter.  Many of those large corporations are also loaded up with huge amounts of debt.  So what is the solution?  Well, the favorite solution on Wall Street these days seems to be to lay off workers.  In fact, it is almost turning into a feeding frenzy.  Since September 1st, we have seen more job cuts announced than during any other two month period since the start of 2010.  These announcements represent future layoffs and job losses which are not even showing up in the unemployment numbers yet.  So needless to say, things don’t look very promising for the end of 2012 or for the beginning of 2013.  If this race to eliminate jobs becomes a stampede, will we see the bottom fall out of the employment market?

If you are concerned about whether or not you will still have a job 12 months from now, you might find the numbers posted below to be quite alarming.  We have not seen layoff announcements come this fast and this furious since the gloomy days of the last recession.

According to Bloomberg, job cuts are well ahead of the pace set last year…

North American companies have announced plans to eliminate more than 62,600 positions at home and abroad since Sept. 1, the biggest two-month drop since the start of 2010, according to data compiled by Bloomberg. Firings total 158,100 so far this year, more than the 129,000 job cuts in the same period in 2011.

So what happens if the economy really starts sliding rapidly and this loss of jobs becomes an avalanche?

Can the U.S. economy and the American people handle another major economic downturn?

Some of the biggest names in the business world have announced job cuts in recent weeks.  The following are 15 signs that layoffs and job losses are skyrocketing…

1. Dow Chemical has announced that it will be closing about 20 plants and will be letting about 2,400 workers go.

2. Colgate-Palmolive has announced that they will be eliminating about 2,300 jobs.

3. DuPont has announced plans to eliminate about 1,500 jobs.

4. Ford has announced that it will be eliminating 6,200 jobs and will be reducing production capacity in Europe by 18 percent.

5. Hewlett-Packard announced last month that they plan to eliminate 29,000 jobs.

6. Chip maker AMD has announced that they will be getting rid of about 15 percent of their workers.

7. Sony has announced plans to reduce their workforce by about 2,000 workers.

8. Electronics manufacturer Sharp reportedly plans to eliminate 11,000 jobs.

9. Engine maker Cummins Inc. has announced that they plan to get rid of about 1,500 jobs by the end of 2012.

10. Earlier this month Applied Materials announced a plan that will eliminate up to 1,300 jobs.

11. Zynga (known for making video games for Facebook such as FarmVille) has announced that they are reducing their workforce by about 5 percent.

12. Lattice Semiconductor has announced plans to eliminate about 13 percent of their jobs.

13. Alcatel-Lucent recently announced a plan to eliminate more than 5000 jobs all over the globe.

14. Siemens AG has announced that the number of positions being eliminated may reach 10,000 by the end of the year.

15. Banking giant UBS plans to eliminate up to 5,000 jobs.

Please keep in mind that these job cuts do not show up in the unemployment numbers yet.  When big corporations announce the elimination of jobs, it often takes a while before those job losses actually take place.

Sadly, I believe that this is just the tip of the iceberg.  I am convinced that the layoffs and the job losses are going to get a lot worse.

In fact, 2013 is already shaping up to be a very difficult year for the economy no matter how the election turns out.

Those of you that read my articles regularly already know that our economic system is becoming increasingly unstable.  We could literally plunge into another major recession at any moment.

Not that we need any more economic trouble.  Tens of millions of American families are having to fight tooth and nail just to make it from month to month right now.

There aren’t enough jobs and the middle class is rapidly shrinking.  Even if you do have a job, that does not mean that you are doing okay.  About a quarter of all jobs do not even pay enough to lift a family of four above the poverty level, and entry level wages for those with just a high school education have been steadily declining over the past 40 years.  If you doubt this, just check out this chart.

So what is going to happen if we do have another avalanche of job losses like we saw back in 2008 and 2009?

Will even more of us end up dependent on the government?

We are told that we are in the midst of an “economic recovery”, but the number of Americans that are dependent on the government just continues to soar.  In fact, at this point it is at an all-time high.

If the economy is getting better, then why does the number of Americans on food stamps just keep going up?  To get an idea of just how massive the food stamp program has become, just check out this infographic.

One of the most frightening things about the possibility of another major economic downturn is the loss of hope that it could bring.

At this point, most Americans still believe that things will get better eventually.

But what is going to happen when large segments of our population lose all hope?

How desperate will they become?

When people become desperate, they tend to do desperate things.

Just check out what happened to a family down in Woodstock, Georgia the other day.  They had just lost their home to foreclosure, and they were getting ready to move out.  So they posted an ad on Craigslist for people to come over and get some things that they were planning to get rid of.  What happened next is a glimpse into the kind of desperate behavior that we may see during the next major economic downturn…

Their online post was just a well-meaning ad for a giveaway in their driveway outside the small house, a giveaway scheduled to begin at 10 a.m. Wednesday.

But big crowds showed up and ended up taking practically everything inside the house, too.

Wednesday night, Michael Vercher walked 11Alive’s Jon Shirek through his family’s almost empty soon-to-be former home.

“Well, when we got to the house, I mean, pretty much — this,” he said as he stepped from the foyer into the living room.

Their home — ransacked, ravaged, raked over.

Almost everything inside — gone.

My wife and I once used Craigslist quite a bit, but incidents like this make one question the wisdom of inviting strangers to come to your home.

Sadly, the truth is that society is rapidly decaying, and the worse unemployment becomes the more desperate people are going to get.

So what do you think about all of this?

Do you have any stories that you would like to share?

Please feel free to post a comment with your thoughts below…

Americans Are Literally Being Worked To Death

Are you constantly tired and do you feel incredibly stressed almost all the time?  Well, that means that there is a really good chance that you are a typical American worker.  Even though our incomes are going down, Americans are spending more time at work than ever before.  In fact, U.S. workers spend more time at work than anyone else in the world.  But it was not always this way.  Back in 1970, the average work week for an American worker was about 35 hours.  Today, it is up to 46 hours.  But there are other major economies around the globe that are doing just fine without burning their workers out.  For example, the average American worker spends 378 more hours working per year than the average German worker does.  Sadly, for many Americans work is not even finished once they leave the office.  According to one recent survey, the average American worker spends an extra seven hours per week on work tasks such as checking emails and answering phone calls after normal work hours have finished.  Other Americans are juggling two or three jobs in a desperate attempt to make ends meet.  Americans are busier than ever and work is often pushing the other areas of our lives on to the back burner.  What this also means is that “family vacations” are becoming increasingly rare in the United States.  In fact, Americans spend less days on vacation than anyone else in the industrialized world.  While some would applaud our “work ethic”, the truth is that the fact that we are being overworked is having some very serious consequences.  In fact, as you will see below, Americans are literally being worked to death.

The following is an excerpt from a comment that one reader posted on one of my recent articles.  Can you identify with what this family is going through?….

I always try and remember to be thankful and say prayers of gratitude for the blessings I have, however I can tell you that my wife and I are getting more and more exhausted.

Straight forward payroll taxes nailed us for $35k last year and the dozens of other taxes are often over-looked but also hitting us harder and harder.

My wife works 14 hour shifts at her dialysis clinic 3 days a week and every other weekend. On the Tuesdays and thursdays she has off she ends up resting half the day to give her poor feet a break since a nurse on her feet 14 straight hours of continual busyness is exhausting.

On top of that, her company has had a pay freeze for 3 years, has dropped Holidays down to just 2 per year ( Thanksgiving and Christmas of which she must work 1 of them), has canceled the reimbursement of her CEU’s ( medical professionals are required to continue to take schooling and classes for their entire career in order to renew their licenses) –also they no longer match 401k’s and her company health plan just bumped up $30 per week!!

I put in so many hours at times that when I get home I am too tired to eat. I come home, change clothes/shower and go straight to bed–this is not living. I try and keep up with my volunteer work and rounds at our local nursing home but something is going to have to give. My caseloads are growing and growing and people are making appts 2-3 weeks in advance. I never had a schedule so filled in advance before. I usually have more long-term pt’s with needs of stroke, Parkinson’s, traumatic brain injuries..but now ortho pt’s are scheduling surgeries as to when I’ll have slots for hip replacement and knee replacement rehab time.

I’m ground down and in the mean time everything is getting more expensive, they keep taking more of my money I earn and we are having all of our benefits cut or completely stopped.

All over this country, millions of hard working men and women are slowly being worn down by jobs that are sucking the life out of them.  Working way too many hours for an extended period of time can have dramatic consequences for your health, your family and just about every other area of your life.

But for some Americans, there is simply no other choice.  There are millions upon millions of Americans that live on the edge of financial disaster these days.  According to one recent survey, 77 percent of all Americans live paycheck to paycheck at least some of the time, and the middle class in the United States has been shrinking at a very steady pace in recent years.

Many Americans are not working 60 or 70 hours per week because they want to.

Many are doing it because that is what they must do just to survive.

For example, a recent article posted on Economy In Crisis profiled a mother of four up in Michigan named Lisa Bosworth who can’t make ends meet for her family despite working three jobs….

Bosworth remarried but her current husband, Ray, was forced onto medical disability when a prescription medication caused health problems. The couple, who had a fourth child together, struggle to support their family on Lisa’s meager income.

Bosworth’s gross monthly income from working as a classroom aide in Reeths-Puffer schools and doing two Chronicle newspaper routes is $1,900. That amounts to $22,800 annually, nearly $5,000 below the poverty level for a family of six.

When they run out of money near the end of each month, Lisa and Ray Bosworth line up at one of several food trucks that visit Muskegon each month.

Earlier this month, the couple and three of their children waited in line at a food truck at Calvin Christian Reformed Church in Norton Shores. Lisa Bosworth had just finished her two newspaper routes and was clearly fatigued after another 70-hour work week. “I’m tired,” she said.

Today, there are more than 100 million Americans on welfare, and a significant percentage of those people actually do have jobs.  In fact, some are working two or three jobs.

Working class Americans are working harder than ever, but at the same time many of them are making less money than they once did.

This is putting an incredible amount of stress on working class families.

In fact, it appears that a lot of Americans are literally working themselves to death.

And as a recent CBS News article described, this is particularly true for poor Americans that do not have much education….

Overall life expectancy has dropped for white Americans who have less than a high school diploma to rates similar to those of the 1950s and 1960s, new research finds.

The study found non-Hispanic white men without a diploma lived on average until 67.5 in 2008, three years less than they did in 1990. The drop in lifespan was even bigger for non-Hispanic white women with low education: They live five years shorter than 1990 rates, from 78 years old to just 73.5.

This is a sign that our society is going backwards.  Working class Americans are actually living significantly shorter lives than they used to.

Of course the garbage that passes for “food” these days certainly is not helping matters any, but that is a topic for another article.

Sadly, those that are working themselves to death consider themselves to be the “lucky ones” in our society today.

There are countless millions of other Americans that are sitting at home right now without a job.

The mainstream media is trying to convince us that the unemployment rate has been falling, but that is a lie.  If the labor force participation rate was the same today as it was back when Barack Obama first took office, the unemployment rate in the United States would be 11.2 percent right now.

But that doesn’t sound nearly as good as 8.1 percent sounds, right?

And the percentage of working age Americans with a job is actually lower today than when the last recession supposedly ended.

In this economic environment, most people are scared to death of losing the jobs that they currently have because they don’t know if they will be able to get another one.

During the month of August, the unemployment rate actually increased in 26 different U.S. states, and yet we are supposedly in the midst of “an economic recovery”.

But the truth is that we are not better off than we were back during the last recession.  In fact, there are a whole host of statistics that indicate that things are getting worse.

Unfortunately, much of the time people tend to forget that the horrible economic numbers that we are seeing have very substantial real life consequences.

People that cannot find work and people that work very long hours for a very long period of time tend to be much more depressed than the population as a whole.

And depression can often lead to suicide.  According to a recent Daily Mail article, more Americans now die from suicide than from car accidents….

Suicide is the cause of more deaths than car crashes, according to an alarming new study.

The number of people who commit suicide in the U.S. has drastically increased while deaths from car accidents have dropped, making suicide the leading cause of injury death.

Suicides via falls or poisoning have risen significantly and experts fear that there could be many more unaccounted for, particularly in cases of overdose.

That is incredibly tragic, because there is never a reason for anyone to commit suicide.  One of the things that I have learned in my own life is that there is always a way for things to be turned around.

Yes, life can be very hard when you don’t have much money, but our lives should not be about chasing material things anyway.  Our lives should be about so much more than that.

If you are currently feeling overly tired and overly stressed because you have been working too much, I encourage you to take a vacation.

We are only given one life to live.  We shouldn’t spend it working ourselves to death.

So what do you think about all of this?  Please feel free to post a comment with your thoughts below….

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