Via: The Guardian.
Wall Street is celebrating a recovery in the US economy, but the future looks increasingly bleak in America’s industrial heartland
Try telling Brother Jerry Smith that the recession in America has ended. As scores of people queued up last week at the soup kitchen which the Capuchin friar helps run in Detroit, the celebrations on Wall Street in New York seemed from another world.
The hungry and needy come from miles around to get a free healthy meal. Though the East Detroit neighbourhood the soup kitchen serves has had it tough for decades, the recession has seen almost any hope for anyone getting a job evaporate. Neither is there any sign that jobs might come back soon.
“Some in the past have had jobs here, but now there is nothing available to people. Nothing at all,” Brother Jerry said as he sat behind a desk with a computer but dressed in the simple brown friar’s robes of his order.
Outside his office the hungry, the homeless and the poor crowded around tables. Many were by themselves, but some were families with young children. None had jobs. Indeed, the soup kitchen itself is now starting to dip into its savings to cope with a drying up of desperately needed donations. This is an area where times are so tough that the soup kitchen is a major employer for the neighbourhood, keeping its own staff out of poverty. But now Brother Jerry fears he may also have to start laying people off.
Officially, America is on the up. The economy grew by 3.5% in the past quarter. On Wall Street, stocks are rising again. The banks – rescued wholesale by taxpayers’ money last year – are posting billions of dollars of profits. Thousands of bankers and financiers are wetting their lips at the prospect of enormous bonuses, often matching or exceeding those of pre-crash times. The financial sector is lobbying successfully to fight government attempts to regulate it. The wealthy are beginning to snap up property again, pushing prices up. In New York’s fashionable West Village a senior banker recently splurged $10m on a single apartment, sending shivers of delight through the city’s property brokers. Continue reading →