The structural faults, many of them legacies of the 1980s, represent once-in-a-lifetime dislocations that will take years to work out. Among them: the job drought, the debt hangover, the defense-industry contraction, the savings and loan collapse, the real estate depression, the health-care cost explosion and the runaway federal deficit. “This is a sick economy that won’t respond to traditional remedies,” said Norman Robertson, chief economist at Pittsburgh’s Mellon Bank. “There’s going to be a lot of trauma before it’s over.”
America’s structural burdens have hit home most profoundly in terms of jobs. The U.S. workplace is “in a profound, historic state of turmoil that for millions of individuals is approaching panic,” according to labor consultant Dan Lacey, publisher of the newsletter Workplace Trends.
The latest recession has hit white-collar workers particularly hard, both in terms of layoffs and slippage in their real wages. “These people can’t believe what is happening to them,” says Illinois opinion pollster Mike McKeon. “They decided they didn’t want to work in factories, so they learned how to use computers. They were rewarded with service-sector jobs[...], but now they’re out on the street and no one wants them.” Open season has been declared on corporate bureaucrats. “The middle manager has gone out of vogue in corporate America,” says Lacey. “Indeed, the word manager is the kiss of death on resumes.” Read the rest of this entry »