Friday, November 6, 2009

I thought everything was supposed to be improving!

Oh how I love CNN news text messages. This one plainly reads, "U.S. unemployment rate hits 10.2 percent in October, the highest rate since April, 1983. Job losses total 190,000."
When I got this message I was shocked. After hearing for weeks now that the economy and employment was improving, this little text shattered that concept for me.
I never did hear any solid numbers on the improving job market and economy so I guess I can't really have expected the claims to be true but it was something I at least wanted to believe. However, my hopes were false as the economy and job market are clearly NOT improving. Obama's plans are either in vain or have not been set into full motion yet but either way something needs to be done.
What should be done to reverse our declining economy and job market?

3 comments:

Scott Silton said...

As you will learn next semester, it is entirely normal for economic activity to pick up before employment improves. So, some good signs for the business sector are not accompanied by an improvement in private welfare. This could have political implications, but it does not necessarily mean we are headed for a "double dip" recession.

Talia Y. said...

I thought that the unemployment rate was already that high earlier this year. Was that just in California? and this 10.percent is nationwide?
I think the government is helping to better the economy. They are trying to encourage people to buy homes by giving them $8000 if they buy a house I think it was by next June? However, even if the economy seems to be improving, the US debt is going way up. I think the government needs to focus on not increasing the deficit and try to reduce it. Trillions of dollars of debt owed to Japan, China, etc is too much. The government needs to stop bailing people out of trouble. I heard that the gov. is starting to print more money and that just equals inflation.
At least is almost Christmas/holiday season so people will go out and buy gifts and such thereby bettering the economy!

Sarah Jacobs said...

I think another thing to consider is the rate at which jobs are being lost. Although unemployment is still going up, the number of jobs being lost per month is steadily decreasing. According to this article (http://www.nytimes.com/2009/11/07/business/economy/07jobs.html?_r=1&scp=2&sq=job%20losses&st=cse), "The pace at which jobs are disappearing continued to taper off in October. Between November 2008 and April 2009 — amid the paralyzing fear that accompanied the collapse of prominent financial institutions like Lehman Brothers — the economy shed an average of 645,000 jobs a month. Between May and July, the pace dropped to an average monthly loss of 357,000 jobs. Over the last three reports, average monthly job losses have slipped to 188,000, after factoring in upward revisions to the data for August and September." So, even though unemployment is at scary high levels, it is comforting to know that at least the number of jobs being lost is not increasing. This could be a sign that the economy is in fact improving, or at least moving towards improvement.