So while the US unemployment increases to 9.6% and xmas is only a few months away it is likely to be a grim holiday period for many, possibly even worse had there not be $82.2 billion given to low income workers and the unemployed with the stimulus.
So the question of who is to blame will likely heat up by November with fingers pointing at: is it the republican obstruction or lack of ideas, the stimulus being too small or useless, corporations offshoring jobs, perhaps even too much bipartisanship at the expense of getting things done(eg healthcare) or even Wall Street/Fannie Mae and Freddie for the destroying housing bubble.
While many of those reasons are likely to come up in the drum beat to the election there is a cold hard facts that many people will suffer. While unemployment rates highlight that the opportunities in the job market is getting out of reach for many older, youth and minority workers it is fundamentally that many people will likely be both without a decent income for a long time.
So while industry is likely to applaud Obama making the research tax credit permanent, the question id like to bring up is America in the 21st century likely be a manufacturing or serviced based economy? Remember a lot of FDI in China is eventually likely to be repatriated to the US once domestic demand in China picks up.
Will this repatriated funds pick up the US economy?, perhaps in the longer term there may be some benefits via taxation federally, however in the short term there is major job crisis, and after 1 year of stimulus and other proposals the rate has hardly changed.
An interesting comparison is the wider, 27-nation EU the rate was also unchanged at 9.6 percent, which equated to more than 23 million people out of work in July.
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
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