The facts aren’t pretty. The American economy is in a serious condition.
New jobless unemployment claims peaked at 659,500 in the week ending April 4, 2009. They fell to 441,250 in the week ending January 9, 2010. The latest report listed those claims at 459,000 people. The last four weeks have seen increases every week. The reality is there has not been any improvement in the layoff picture in many months. 41,000 new private employer hires in May doesn’t even meet the needs of the growing population.
All the reports related to business have indicated an upward trend. That translates to improved profits.
What we have here is proof that business can earn reasonable profits without the cost of hiring the 15 million people that the BLS admits to being unemployed. The real number is probably in the range of 22 million people.
They keep telling us that America is a consumer driven economy. If that is so then the United States is in for a long difficult period. We just aren’t in the buying mood when so many of our friends and relatives are unemployed.
The rich aren’t even getting richer. Well not as fast as the were. The S&P 500 is slightly below its value at the end of December 2009. Wisely those of us who use the rule that January’s stock market performance is an indicator of the coming year sold our holdings and invested in bonds.
A double dip recession appears to be a genuine possibility.
President Barack Obama has not brought “change we can believe in.” He has let politics control his behavior. He has not focused on one of America’s highest responsibilities. Jobs, jobs, jobs. Clearly he has no solutions.
Who does?
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