Friday, December 2, 2011
Unemployment 8.6%
This article talks about the recent decrease in the unemployment rate to 8.6%. This serves are evidence to the gradual rectification of the economy. Another important part about this article is its reference to the idea that unemployment insurance that has been given out during this financial crisis should be a source from which the economy would benefit. They say that recipients of this money will spend it quickly which will boost the spending in the economy. This is interesting as it suggests another good side to the availability of unemployment insurance, while in class and in previous articles it was generally seen as an incentive to stay unemployed.
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This coming holiday season is forecast to be higher consumer spending than the previous couple that we have. With higher AD, firms are seeing a decrease in their inventories are starting to hire a little more.
ReplyDeleteThe holiday season is certainly helping the economy right now. However, we have to look a month or two ahead and hope that consumer spending does not dip again. Firms and consumers would both benefit from an extension of these holiday prices a bit into the future.
ReplyDeleteI don't think consumer spending is as much of a problem as private investment. Private investment has taken the largest hit in this recession and while efforts to increase consumer spending is nice, I'm worried that less focus is put on helping to get businesses to regain confidence to invest.
ReplyDeleteAs another article I read and post, even though the data shows that the unemployment rate has decreased, people still haven't feel being benifited. There is a buffer time. And just as people talked above, especially in holiday season people are more obvioulsy feeling that they are "poorer".
ReplyDeleteThere's good news and bad news for everyone in this report. The bad news is 315,000 dropping out of the work force, the good news is the unemployment rate coming down to a still too high 8.6%. No doubt the GOP will claim it's all fluff and not meaningful, but it pays to remember just who started us on this downward spiral in the first place.
ReplyDeleteNo matter what President Obama proposed, the GOP puppets and their Tea Party string pullers will vote no. The great hope is now Newt who is a real example of GOP family values. Three wives, countless affairs and a big line of credit at Tiffany's. Just what we need another "Country Club First".