How Will Obama Stop Job Losses?
US economy lost 533,000 jobs in November, the most since 1974 and some economists are predicting anywhere from 3 million to 5 million total job losses by the time the recession ends.
Business Week’s story Job Losses: Is the Panic Justified? had this to say about the end of the recession. “This job bust won’t last forever. There are forces at play that will eventually pull the economy out of its free fall. The key is smart government policy that sets politics aside. It must provide a combination of short-term consumer stimulus and long-term investments without stepping over the line into wasteful and innovation-stifling industrial policy”.
With a bank bailout that has had little effect on consumer and investor confidence, there is reason to be skeptical that more government spending will stop the momentum of the falling economy. Business Week columnist Peter Coy explained that Obama’s plan to “invest heavily in roads and bridges, energy efficiency, school buildings, broad-band networks, and electronic medical record-keeping” may be flawed. Some economists don’t think there are enough unemployed construction workers to do all the jobs envisioned by the Obama administration.
While company revenues will be hurt by unemployment consider yourself lucky if you are an executive or manager. According to Business Week, the unemployment rate for Management, business, and financial operations is just over 3% compared to 12% for construction and extraction occupations and 32% for black teenagers.
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