The latest employment statistics that came out at the end of last week seem to indicate that the United States is moving in the right direction. The unemployment rate fell to 8.3%, going lower for the fifth straight month. However, all is not rosy in America. According to Paul Krugman, "we started 2012 with fewer workers employed than in January 2001-- zero growth after 11 years," and the percentage of long-term unemployed workers "remains at levels not seen since the Great Depression." 8.3% is the number that gets all of the press, but when you factor in what the Bureau of Labor Statistics terms "discouraged workers", or people who have stopped looking for a job, the real unemployment rate is 9.7%. Having basically 1-in-10 unemployed is extremely disheartening. With the persistent risk of a financial meltdown in Europe also hanging over the US economy, I think the experts who were pessimistic about the financial recovery in America will unfortunately be proven right at the end of the year.
All aspects of the world today are more connected than ever. None more so than the globalization of the world's trade. In times of plenty, a globalized economy can benefit everyone. Stock markets were booming and virtually anyone was able to supposedly "afford" the house they always dreamed of living in. Economists today talk about getting the country back to an economy that will be stronger than the one we had before the 2008 financial crisis. I don't see how this is possible. If we learned anything from 2008, it's that our empire was built with fools gold. Our fools gold was phony credit. Globalization is a double edged sword. The price of being so connected to the rest of the world could very possibly slow, if not outright ruin, the U.S. economy. You can bet that all of this is being watched very closely by all parties involved in the U.S. election. The economy taking a turn for the worst in the latter part of the year is the only roadblock to President Obama's re-election. Stay tuned.
Sources:
-The Bureau of Labor Statistics' Employment Situation
-Percentage of "Discouraged Workers", plus the unemployed
-Paul Krugman's Opinion Piece on February 5, 2012
All aspects of the world today are more connected than ever. None more so than the globalization of the world's trade. In times of plenty, a globalized economy can benefit everyone. Stock markets were booming and virtually anyone was able to supposedly "afford" the house they always dreamed of living in. Economists today talk about getting the country back to an economy that will be stronger than the one we had before the 2008 financial crisis. I don't see how this is possible. If we learned anything from 2008, it's that our empire was built with fools gold. Our fools gold was phony credit. Globalization is a double edged sword. The price of being so connected to the rest of the world could very possibly slow, if not outright ruin, the U.S. economy. You can bet that all of this is being watched very closely by all parties involved in the U.S. election. The economy taking a turn for the worst in the latter part of the year is the only roadblock to President Obama's re-election. Stay tuned.
Sources:
-The Bureau of Labor Statistics' Employment Situation
-Percentage of "Discouraged Workers", plus the unemployed
-Paul Krugman's Opinion Piece on February 5, 2012
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