The collapse of labor force participation

This morning's employment report was a mess, and not in a "hot" way (Instapundit's links round-up here). Americans are giving up, and in despair, and in the face of relentless deficit spending and unprecedented monetary expansion. Chartology:

Yes, after more than four years of Fed pump-priming and trillion dollar deficits, Americans are now participating in the labor force at the lowest rate since 1979. Anybody out there remember how much that sucked? We are making the Carter years -- hostages, oil shocks, and national humiliation -- look optimistic.

And yet, the war on enterprise continues.