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Marini -> RE: Focus on the economy and creating millions of jobs? (9/3/2010 3:54:02 AM)
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quote:
ORIGINAL: Fellow
It seems to me Obama thinks the current joblessness levels can be managed, and the problem does not deserve drastic measures. His current activity could be classified as a pre-election PR campaign.
The US economy is stable and it is growing on very low pace. The companies make profits and the stock prices have not fallen substantially. Bank profits are at pre-crisis level (a sign of economy sickness actually, they collect interest on debt).
So, there is actually no need for drastic actions (from the White House perspective). Similar trends can be noticed in Euroland: many countries manage high unemployment without any attempt to make structural adjustments in the economy. Jobless are kept (as much as possible) invisible suffering minority while the country puts out a happy facade.
It would be very difficult (if not impossible) to make US Congress act for a new stimulus. Even if something would get passed, it would be a caricature what is actually required due to needed pork additions. Targeted infrastructure spending would work in principle. Also, the idea that is floating around, eliminating payroll tax for few years (Republicans could join this one). Hopeless would be to try to cut military spending (both Democrats and Republicans who are making decisions obviously do not even consider the option).
The biggest problem USA is facing is financial. Currently huge loads of debt banks hold are kept hidden with the hope property values will recover soon. It will not happen, and it can potentially result in another crash. Some economists say: the earliest possibility will be the next spring.
Sorry to make such a prediction, but there is no hope for many unemployed for years to come. In Europe they can search for work abroad. Mexico economy is predicted to grow in perspective. Maybe they will take better skilled US workers in near future.
Thank you for an interesting and well thought out post.
I like the way you insert humor and sarcasm at the same time.
Of course our economy is going to "crash", probably many more times, as we continue our downward national spiral towards our 21st version of the modern day "DEPRESSION".
Of course we can create some jobs building "infrastructure", "high speed rail" and maybe a fair amount of green/energy jobs, but will that sustain employment for the MILLIONS that are out of work, or the MILLIONS more that are seriously underemployed?
Whichever way you want to spin it, this "economy"/or problems in our economy, is the #1 issue facing America, on this Labor Day weekend.
When the unemployment numbers come out, they will not be accurate about the real number unemployed {those that have given up, etc.}.
So if the gov. states it's around 10%, it is really at least 20%.
Happy Labor Day!
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