US unemployment rate rises to 9.9%
- Thread starter Icarus27k
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You are wrong here. In the latest employment report most of the jobs were created in the private sector. So yes you should indeed give credit to the Democrats. Obama's recipe for the economy clearly is working.
High unemployment in the US does not bode well for Canada. A poor American population cannot afford to buy our goods. On that front, it's in our own best interest to wish the US a speedy economic recovery...
... and maybe for our politician to give US politicians heck for ruining their economy. And we don't have to pretend that it's only out of concern for them, but for us too.
... and maybe for our politician to give US politicians heck for ruining their economy. And we don't have to pretend that it's only out of concern for them, but for us too.
Obama's strategy was short-sighted at best. I won't deny that it's created jobs. But it's also risen the national debt, meaning more inflationary pressures in future.
Replacing one problem with another is not the way to go.
Assuming the recovery continues at the present pace, I would expect unemployment to start falling shortly, in a few months.
Indeed, it is astounding how much the picture has changed compared to a year ago. A year ago there was a very real possibility that we may be facing a depression.
We did not even come close to a depression. If you read my threads from around that time, I'd already foreseen the need for a cautious strategy to not jut replace the recesion problem with possible inflation, debt, and high interest rate pressures down the line. It appears we will be seeing this in the years to come, coming not just from the US, but from Greece, the UK, Iceland, etc.
Since we've overreacted to the recession, we may now find ourselves fighting its opposite soon enough.
Try to read what I wrote again. I said an increased unemployment rate is good, which it is, because it means people are re-entering the labor force. This is economics 101 stuff.
The economic recovery was obtained at high cost, it pushed up the deficit sky high. But it had to be done, he had to stave off the depression. When he came to office, depression was a real possibility.
But you are right, steps must be taken to reduce and eliminate the deficit, once the economy recovers sufficiently.
Unfortunately that is not likely to happen. I don’t think either of the two parties is serious about tackling the deficit. Democrats must cater to their constituency. As for Republicans, all they want to do is cut taxes, even if it shoots the deficit sky high.
It may well be that USA, like Greece must hit the bottom before they will take austerity measures. Greece did not take any austerity measures until now. Now they were forced to take them, with gun pointed at their head by the IMF.
So may be 10 or 15 years down the line ,when USA is drowning in its debt, when it has to ask IMF to bail it out, when USA is facing bankruptcy, that is when austerity measures will be taken, Then politicians will have a ready made excuse. They didn’t want to do it, but IMF forced them.
Sometimes a drug addict has to hit the bottom before he starts thinking abut getting rehabilitated. Perhaps it may be the same with USA.
Not by a long shot. We already know that any fool can stave off a depression just by printing enough money.
It's already recovered sufficiently. A social corporatist economic model could have worked here.
Americans need to start voting in fiscal conservatives,regardless what their party affiliation is. They need to start voting with their heads.
Yes, and don't think for a moment that the Greek crisis can't hit Canada. Just because we're not in as bad a shape as the rest of the world, let' not et arrogant. If the strongest man in the world is holding up a floor, and then people start tumbling one by one, it's only a matter of time before he tumbles too. It's in Canada's best interests to talk sense into the US before the US pulls our economy down too.
If that happens, Canada won't be laughing either. Look at ow Greece has affected the whole EU and beyond. You don't think US bankruptcy will affect Canada? Seeing how it would affect us, Canada would be well within its rights to call an international meeting to discuss international debt and point out how we each have a responsibility to manage our economies not only for our own well-being, but for that of our neighbours too. Certainly the US is benefiting from a strong Canadian economy just as Canada is suffering from a weak US economy. Certainly things would have been worse not only for Canada but for the US too had Canada been in the same economic boat as the US.
Yes, and by then his family is in ruins too. The world is an international family.
You can find that info in the seventh paragraph of the CBC article I linked in post #1. I'll link that again.
CBC News - Money - U.S. economy adds 290,000 jobs
The possibility of depression was very real, Machjo, especially right after Lehman Brothers went belly up. That froze all the credits, nobody was lending to anybody. With no lending going on, we would have had a full blown depression in literally weeks. These days no business is conducted without credit. Why did Bush put together the package in such a hurry? It was adopted literally days after Lehman Brothers went bankrupt; there was no talk of any stimulus package before that.
It is not for nothing that Bush put together a stimulus package in a hurry. But that was not enough. Even at that time many economists said that it did not go far enough, so a second package was necessary, the one put forth by Obama.
But according to economists, there was a very real possibility of depression. As to overreaction, we will never know if it was an overreaction, these things are very difficult to sort out even in hindsight. What was important was that we avoided a depression.
If the economy needed more money, we could always have printed more money and directed it towards paying the debt. It would have killed two birds with one stone, reducing the debt while adding needed cash into the economy, putting the country in a position to then rake the money back up after the recession even if that debt had to be taken back. At least it would have been a matter of just taking back a former debt rather than adding to an already existing debt.
The following AP article gives a number of how many formerly discouraged jobseekers re-entered the labor force in April. 805,000.
Unemployment report out: 9.9% |West Palm Beach News, South Florida Breaking News, Forecast, Video from WPTV
805,000 new job seekers, but only 290,000 jobs added. Yeah, that'll cause the unemployment rate to go up for sure. But still, it's a good thing that people are looking for work again.
Unemployment report out: 9.9% |West Palm Beach News, South Florida Breaking News, Forecast, Video from WPTV
805,000 new job seekers, but only 290,000 jobs added. Yeah, that'll cause the unemployment rate to go up for sure. But still, it's a good thing that people are looking for work again.
Unless you are out of money and can't find a job. Personally I think it is only a sign of a good thing to come.
Gotta love people who screw with economies.
You got it, YJ. When there is a Democratic president in power, the real unemployment is 17.1%. When a Republican president is in power, the real unemployment is zero. Isn't that how it works out?