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The Economy: Pink Slips, Politics and Stimulus

June 8, 2008

Public job losses for 2008 have reached 324,000 as jobs vanish into thin air. According to statistics, the number of unemployed Americans grew by 861,000. Pink slips are in the air as employers look at the fifth straight month of nationwide job losses. The unemployment rate of African-Americans is officially projected at 9.7 percent. The truth is that unemployment in America is much higher by as much as 150%. (Check out the TNTalk! archives for more information.)

As a result, the toll on the economy and the housing crisis is likely to accelerate. Americans that have work are not keeping up with inflation and hefty price hikes for essentials.

Even in the booming health care trade, many individuals are having trouble finding gainful employment.

Economists are ever optimistic, stating that the published figures for unemployment may overstate the weakness in the job market. This writer says that economists to try living in the real world and make themselves useful.

U.S. economic problems are a top concern for some American voters. The outcome of the election will likely be determined by the candidate with the best strategies to begin to turn the tide. Admitting the truth beyond the hackneyed figures of the Federal Reserve and the U.S. government would be a start. Do we have a politician brave enough to challenge even a few of the foundations of government statistics? This will show whether national healing is truly in the air.

Everyone pledges to turn around the economy. Addressing the symptoms is usually the concern of politicians, but a man or woman of real substance actually seeks to address the causes of economic malaise. President Bush and the Fed has versed the country very well on what has brought the nation to its’ collective knees. Government has done little or nothing of value and the Fed continues to pat bankers on the back while suggesting modest ‘reforms’ to cover structural economic cracks and chasms.

President Bush is once again talking of economic stimulus. Bush continues to promote his existing economic policies and failed to provide a look at any new ideas for his additional stimulus plan. Analysts believe consumers are still anxious and for good reason. A weakening job market is likely to make people feel less inclined to spend even if they have money in their pocket. Open discussions that the economy has fallen into its first recession since 2001 has led to politicians and their paid economists to consider that a second stimulus might be warranted.

One of the problems of stimulus is continuing to use the Internal Revenue Service to administer public stimulus policy. The last stimulus was limited in scope and did little beyond providing a small shopping holiday or paying a few late bills. If a taxpayer owed money to the IRS or was behind on child support, the stimulus did little good, at least for the taxpayer or to stimulate the economy. Despite the fact that legislation was put in place in February, it took some recipients of the stimulus until June to receive their IRS treasury check. This is despite the fact that the taxpayers have been paying interest on the national debt incurred for the stimulus since February.

Meanwhile, on the Russian front, Russian President Dmitry Medvedev accused the United States of “economic egotism” and spawning global economic troubles. Recklessness by big banks and what he called “the aggressive financial policies of the biggest economy in the world” have not just hurt corporations. Unfortunately, most people on the planet have become poorer.” In general, Wall Street, investors, regulators and banking institutions that begat the crisis continue to roll in cash and credit. That is quickly changing as the hemoraging continues from poor banking execution and economic instability.

For the average American, net worth is lower, purchasing power has tumbled and for those that lose work, a likely replacement job is extraordinarily tough to find. Meanwhile, politicians and economists are still debating about whether the country is in a recession. If the politicians don’t get on the stick, Americans won’t be listening to what they have to say without revolution on their mind.

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3 Comments leave one →
  1. June 9, 2008 6:39 am

    Level you have some good points. I am really behind number 6. Students in HS do not know anything about money or finances. They are at a lost there. I thought the schools used to teach some classes on money management or maybe it was just my mom.

    There are some really good programs out there to help teach children (primary-middle school) the basics. I will locate them for you and this article.

    Excellent article. I’m looking forward to reading more of your articles TNTalk. I’m going to clip this to Homeless Issues. Thanks !! :)

  2. June 9, 2008 6:38 am

    My thoughts:

    1. Get rid of the Federal Reserve for good and put a new monetary system in place that’s government controlled and regulated.

    2. Cap the interest rates credit card companies, mortage companies and banks can charge during these economic hard times 2a. No penalty interest or late charges for being late during these hard either. Require these loan sharks to encourage their client(s) to pay off their debt early as well, instead sending more junk in the mail encouraging them to refinancing for a lower interest rate, upgrade your gold card to a platinum card, take a out a second mortgage at a 100% value of the house and to use this money to go purchase that dream car or to finance that dream vacation, buy that big 360 inch T.V. that’s, buy the wife/husband/girlfriend/secret lover or closet friend the most expensive jewelry to show them how much you really love them etc, ect. Sorry if carried on here but I got typing happy after having flashbacks of all the galore junk mail i once used to receive that tempted me to go get in debt for the rest of my life – Thank to me, I didn’t.

    3. Move the nation’s workforce to a 4 day 32 hour work, with no salary employee salary reduction or benefits; and increase hourly wages for hourly employees so they’re getting the same take home pay as they would if they were working 40 hours a week = more productive workers m-t or t-f, less cars on the road, less emissions, lessen our dependency on oil and more time with our families or just plain old relaxing or to work a part-time job. This also means moving the school system to a 4 day week as well.

    4. Give tax breaks or provide government assistants to purchase solar energy equipment to power our homes.

    5. Close tax loopholes for companies who outsource Mfg. and service jobs to other countries and give tax incentives for the ones who don’t.

    6. Last but not least, make it mandatory the school systems across the country mandates every student takes a class each year until they graduate that teaches them about money, finances responsibility & the problem with debt until they graduate.

  3. June 8, 2008 6:36 pm

    The Government tells us what the “THINK” we should know. The Propaganda coming out of Washington, D.C. is disgusting. To get a better point of view on American economics these days, one needs to watch European news and financial markets. By doing so you can be the judge of just how much Propaganda Washington is spewing these days.

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