If you missed the news this week, a leading group of economists announced that the recession is over. At least on paper. Although a survey by the National Association for Business Economics found that 80 percent of economists say the recession is over, few of those economists believe a recovery is right around the corner.
The most optimistic predictions say the true signs of a rebound are still months away. The Wall Street Journal reported Tuesday that although stocks shot up due to higher-than-expected profits, many companies raised their profits by cutting staff and operations. The Journal reported that few companies expect to hire people back or expand production in the next year, meaning there is little hope of an immediate recovery.
This is particularly bad news for people out of work. The national unemployment rate is 9.8 percent, up nearly four percentage points from the same time last year. Economists expect unemployment to rise to 10 percent early next year before starting to fall. In Nevada, the unemployment rate in August was a record 13.2 percent, the second-highest in the nation.
Even those numbers don’t reflect the full effect of the economic downturn. The federal Bureau of Labor Statistics doesn’t include people who say they have quit looking for work or people whose hours have been cut back and are underemployed.
At the end of last year and the beginning of this year, there was a great rush in Congress to find ways to stimulate the economy. Without the swift government action by the Democratic-led Congress and President Barack Obama, over bitter Republican opposition, the nation’s economy would be much worse than it is now, not anywhere close to emerging from a recession.
The president and Congress lately have been consumed by the much-needed legislation to overhaul the nation’s health care system, and although that legislation is important, more attention must be devoted to repairing the economy.
Because of the severity of the economic downturn, Congress should consider a broad view of options. Robert Reich, the labor secretary under President Bill Clinton, told The New York Times’ Bob Herbert he would consider tax incentives for small businesses that create new jobs. He was careful to add that the incentives should not reward companies for employing people they would have hired anyway.
Other experts are proposing greater federal aid to states to help them pump money into highway construction and other infrastructure projects.
Those ideas are just two examples of what needs to be on the table. No matter what it does, Washington needs to move speedily to find ways to stimulate the economy and create more jobs.
Wow......
Obama makes the world a peaceful place AND the USA economy is no longer in a recession.
Talk about over dosing on kool-aid......
"Without the swift government action by the Democratic-led Congress and President Barack Obama, over bitter Republican opposition, the nation's economy would be much worse than it is now, not anywhere close to emerging from a recession"
LOL most of the money in Nevada went to pay for Union local and state workers salary and benefits increases.
This was a political payback with most of the spending to come next summer right befor the 2010 election.
As an illiterate unwashed white trash tea-bagger I realize that I have no right to question the spin that the Democrats are putting out. But.
The facts continue to come in that the Bush era financial system intervention rather than the Obama era jobless stimulus bill has brought us out of the recession.
We need an honest assessment of what worked per Nancy Pelosi's test that the stimulus bill be timely, targeted and temporary.
What is known is the trajectory of the rate of job losses had already changed from a peak in December 2008 -January 2009 -- before Obama took office and passed the stimulus. Every month since January 2009 the job losses have been less and the economy went positive in May of 2009. The only appropriate part about the stimulus was money to ameliorate the pain of unemployment like extended benefits as is done for every recession.
Vice President Joe Biden said that "everyone guessed wrong" then said they "misread how bad the economy was." That includes "spend and inflation as a cure" proponent Paul Krugman.
As the financial system intervention is unwound the stimulus must also be unwound to lessen the impact on the deficit, prevent runaway inflation, and avert a double dip recession.
Paul Krugman has come to tell us to not worry about our looming $9 trillion deficit. It only impact is political. Krugman is arguing that the debt to GDP ratio going from 30% to 70% is okay.
Krugman says "We're looking at a rise in the debt/G.D.P. ratio of about 40 percentage points. The real interest on that additional debt (you want to subtract off inflation) will probably be around 1 percent of G.D.P., or 5 percent of federal revenue. That doesn't sound like an overwhelming burden."
The slippery slope here is Obama depends on raging high inflation to diminish the original borrowed value and the faith of the lenders like China that they have made a good investment
The Sun can't even write an editorial critical of the administration without also giving a big sloppy kiss to Obama (Peace Be Unto Our Benevolent Savior) and telling us what a bunch of old, white meanies the Republicans are.
Seriously, why does Obama (Peace Be Unto Our Benevolent Savior) even need a press secretary when he's got the Sun spinning itself into knots just to compliment Him (yes, capital H!) at every turn. Get off the kneepads, Sun.
All of this currying favor with Obama (Peace Be Unto Our Benevolent Savior) is getting just a little embarrassing.
I am a business owner. I am truly concerned about the future of the tax system in this country. I have laid off 20 employees and probably will have to let go another 20 if the economy does not improve. Fortunately, I have been able to maintain my profit margin with these layoffs. However, until I'm assured that the public option is off the board and that I won't be overtaxed due to achieving success from years of hard work, I will not be replenishing my work force. And this is from an employer that offers health care AND tuition assistance to ALL of its employees.
Good news; GM stock prices up 19.60% on strong word that the bake sale and bottle drive had together netted nearly $90.00 for the struggling auto maker.
Also TMF share prices rose 680.00% sharply after it revealed that the Newark area auto repair shop had mistakenly received $200 billion of government bailout money.
judgesmales.........The Sun adores Obama cuz he was born in a manger. Thats why.
another thing, Brian Greenspun will get chapped lips with all that rear end smooching because the weather is getting colder and the wind is ferocious Remember the chapstick Brian , kiss kiss!