The Truth About Unemployment July 2010
Treating Symptoms, not Causes
By Wes Fessler |
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July 29, 2010 |
If the heartbeat of America looked anything like the Bureau of Labor Statistics unemployment chart for 2010, many of us would be adorned with toe tags by now. While the country has been collectively hushed, while listening for signs of life; what there was of a so-called “recovery” has flat-lined.
"Slower than Previously Projected"
The once confident and determined calls from President Barack Obama and his administration to borrow and spend trillions of dollars against the collateral of America’s future are now called into question, not only by the people, but also by those pacing the floor of the White House itself. The President underestimated the extent of the recession’s effects, a fact that was demonstrated by the words of the Federal Reserve Chairman, Ben Bernanke, as he spoke to congress on July 22, 2010 saying, “Progress in reducing unemployment is now expected to be somewhat slower than we previously projected.”
More for Our Money than the Stimulus
This is not the news that most Americans want to hear, but the reality is that while the American unemployment rate has subsided by a little more than one half of one percent from its peak level, it is a stretch to claim any victory in employment figures that have improved by less than one percent. Considering the billions of dollars in bailouts and stimulus money that it took to achieve such a figure, it is about as sensible as trading a dollar bill for a penny. The Census is finished, and so too are a majority of its jobs. The question growing louder and louder is, “Couldn’t we have gotten more for our money?”
Treating Symptoms but not Causes
It is good to see people back to work, however few they may be, but was the stimulus the best approach for creating jobs? So America has succeeded in reducing unemployment by less than one percent through the implementation of a stimulus bill with a price tag of 787 billion dollars. On July 22, 2010 the Unemployment Extension Bill cleared the senate, and was signed into law by President Obama, restoring hope to millions of unemployed Americans who are finding the job market persistently reluctant to open its doors to them. This is a good thing right? Still, what has been done for businesses that have tightened their belts to the point of inward collapse? What has been done to alleviate their fears about opening their doors to new employees?
Businesses in Duress
Businesses are as uncertain about the future as Fed Chair Ben Bernanke is about unemployment. Common concerns that businesses face are potential changes in tax requirements, rising energy costs with cap-and-trade, and the inability to secure loans in order to meet their obligations. The government has been threatening businesses with harsher conditions and less financial flexibility, while expecting them to hire new employees. The stimulus, which was supposed to create jobs, has largely ignored the businesses that could potentially have started hiring. This is where the stimulus failed, and quite possibly the reason that unemployment is still so stubbornly high in America.
When it comes to jobs, the heartbeat of America has truly flat-lined. While the money invested has made a difference in unemployment to the right of the decimal point, it has failed to address the concerns of businesses across the nation. It is important to meet the needs of those who are unemployed, but it is also important to facilitate the processes that allow businesses to hire those who are out of work. While everyone is eagerly waiting to see signs of life in the economy, the decision remains in the hands of the Obama administration…will it continue to treat only the symptoms, or will it address the causes? Will it invest in America’s businesses, or will it invest a large supply of toe tags.
References:
White House: Unemployment at 9% until 2012, Accessed July 29, 2010
http://money.cnn.com/2010/07/23/news/economy/white_house_budget_review/index.htm
U.S. Bureau of Labor Statistics, Accessed July 29, 2010
http://www.google.com/publicdata?ds=usunemployment&met=unemployment_rate&tdim=
true&dl=en&hl=en&q=current+unemployment+rate
Monsters and Critics, US Fed chief Bernanke: Moderate growth but slow job gains (Roundup), Accessed July 29, 2010http://www.monstersandcritics.com/news/business/news/article_1572392.php/US-Fed-chief-Bernanke-Moderate-growth-but-slow-job-gains-Roundup
