This year I’ll be following Unemployment in the United States. According to the Bureau of Labor Statistics (BLS) unemployment in the United States was holding steady at a rate of 9.1%. Economists still debate what a healthy unemployment level is, but the typically accepted rate is between 4% and 7%. The current recession peaked at a touch over 10% unemployment, and has bounced downward slowly.
So what is the problem with high unemployment? That sounds like a silly question, but why solve a problem if you don’t know why it is a problem in the first place? The main problem with high unemployment is that it shrinks the economy. People are out of work, and thus are not making money, and cannot afford to buy on the level they once could, which forces reduced production in other sectors, and forces layoff, which continues the cycle. In short the economy shrinks while the population does not, which results in fewer dollars in everyone’s pockets.
The bad news is that over the last month or so unemployment has stagnated almost across the board. Sectors that had recently shown strength have begun to demonstrate weakness, and other like temporary employment that are often used to predict future growth have not grown. Perhaps more importantly 200,000 more people have reported that they are no longer looking for a job, demonstrating a troubling lack of faith in the economic system.
Things ain’t looking fancy.
Wondering why economist don’t think 0% unemployment would work?
What the future might look like. (Spoiler alert, it isn’t pretty)
The worst part is that we are still spending. I realize that Obama has a plan, but the shackles put on it in order for it to survive congress have turned it into a sham. WE ARE THROWING MONEY INTO A BLACK HOLE. That is what it comes down to, and result is inflation, a weakened economy, and less faith from the American people. This is bad. The government can print money, but it can’t make real profit. Only the Private Sector can do this, and as long as the specter of big brother (whether real or imagined) looms heavy overhead they will not hire the people and make the verifiable, tangible, taxable money we need to break out of this recession/depression/downturn/swagglessness we’ve gotten ourselves into.
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