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“The dollar fell after more Americans than expected filed applications for unemployment benefits last week, signaling concern the recovery in the world’s biggest economy is slowing.” — SfGate
The US is in denial. They are struggling with a faltering economy and looking for solutions while ignoring the source of the problem and that problem is the lack of manufacturing. For the last 30 years, they have watched as jobs were sent overseas and did nothing. There was a time when 90 percent of everything sold in the US was made in the US. People had jobs and spent their money on American goods that supported American workers. Now they work in low paying service jobs and buy Chinese products. If this situation is not corrected, the US economic picture will not improve.
The special factors are double dip and government hasn’t fixed the problem of government debt and the fact that peoples incomes on average are shrinking. Make $80k, loose the job, make $60k at the new one with less benefits, then loose that one and make $30k with no benefits.
Why invest in the US? Future taxes on $14.5 trillion isn’t going to be an easy swallow. To a large degree, government is making the problem worse. By bailing our rich cats, it does not help your average Joe. More tax greed is a real threat. It is why Reagonomics worked and Obamanomics is on the biggest skid in US history.
Worse yet, no abatement. China is in fact propping up the world economy, if it falters look out. Government can only redistribute wealth, it cannot create it. Government economists and economic advisers should be run off like vermin. Ignoring reality is just causing more bad news.
Jobs dilemma puts policymakers between a rock and a hard place By Steven Thomma McClatchy Newspapers
Just in time for the fall election campaigns, a new report Thursday showed jobless claims jumping unexpectedly, providing new fuel for the debate over what economic, fiscal and political path might lead the way to recovery.
First-time filings for unemployment benefits rose last week by 12,000, reaching 500,000 for the week, the highest level since last November. Economists had expected the claims to drop.
At the same time, a new nonpartisan update on the federal budget noted that one way to create jobs and boost the economy would be to extend some of the Bush-era tax cuts, which now are set to expire Dec. 31. The Congressional Budget Office said that extending some tax reductions and other tax measures would knock nearly a full percentage point off the unemployment rate next year, but at the cost of higher budget deficits and debt.
The two reports served as a stark reminder that jobs and the economy will dominate debate in Washington this fall as Congress weighs whether to extend the Bush-era tax cuts and the campaigns begin for control of Congress.
President Barack Obama, who told an audience in Wisconsin just days ago that “we’re headed in the right direction” on the economy, said the jobs report underscored the need for Congress to pass a bill that would help small business by easing credit.
He stressed that the bill would be offset and not add to the budget deficit, and blamed Republicans for blocking it.
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This entry was posted on Friday, August 20th, 2010 at 8:26 am and is filed under Poverty. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.