“They certainly look happy, don’t they?”
Happy days are here again
The skies above are clear again
So let’s sing a song of cheer again
Happy days are here again
Sung during the Great Depression, and composed by J. Yellen and M. Ager
Bank of Israel Chairman Stanley Fischer and Finance Minister Yuval Steinitz appeared happy when it was announced that the numbers of unemployed Israelis had decreased to “only” 17.5 thousand new claims in Jun/July, as compared to 18.6 thousand during May, or a decrease of 5%. That, according to Steinitz, brings the total number of redundant workers down to “a more manageable level” of slightly less than a quarter million souls. Another statistic that appears to cause both Mr. Fischer and Steinitz to smile is that the number of people being fired from various jobs fell by 2.2.% as compared to previous months.
But if all this is supposed to be such great news, why are so many not smiling, or whistling modern versions of Happy Days are Here Again? And why did the Bank of Israel have to go out and purchase another 100 million dollars on top of the 250 million the bank bought a few days earlier to try to stem the continuing decline of the Greenback? Perhaps things arenâ€™t as “happy” as Fischer and Steinitz want us to think?
During the summer months, unemployment figures always seem to drop a bit for a number of reasons, including many people finding temporary summer jobs, or taking a vacation due to their kids being out of school; or simply waiting for the job market to pick up again in the fall. This logic is particularly true for women who are now unemployed from high tech or similar higher paying positions, and have decided to be home with their children instead of having to pay for expensive day care; since the greatest day care “plans” around , school and pre-school, are both out on summer break.
Another factor deals with people who out of desperation have taken lower paying jobs as cashiers, security guards and even maintenance workers that pay only minimum wage or slightly higher; making them under employed as compared to their former status. All of this goes along with a statement made the other day by U.S. President Barack Obama, when he told a press meeting that “we are now seeing the light at the end of the tunnel regarding the end of the current recession”. He almost broke in a version of the Happy Days song himself while making this statement, apparently giving himself the credit for any improvement in the still faltering U.S. economy.
But getting back to what’s happening on this side of the pond, it’s still far too early to whistle any happy tunes; especially when many people’s unemployment benefits are about to run dry and local banks are calling on credit card companies to return payments due to lack of funds. We must also bear in mind that when that Happy Days song came out in 1929, the Great Depression had not even begun yet.
So who’s whistling this song now? Maybe Yuval and Stanley are â€“ but a lot of folks arenâ€™t!
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