Even though there has been a lot of talk lately about the economy finding its way out of the slump, President Obama cautions us that we're not really there yet. Even though GDP is looking better, and home sales are up, President Obama warns more people might lose their jobs.
The Associated Press reported that President Obama doesn't see the recent economic growth of 3.5% as a reason to celebrate just yet. In his weekly radio and internet address to the public, Obama said:
"While we have a long way to go before we return to prosperity, and there will undoubtedly be ups and downs along the road, it's also true that we've come a long way, it is easy to forget that it was only several months ago that the economy was shrinking rapidly and many economists feared another Great Depression."
The unemployment numbers for October are not out yet, but after September's grim 9.8% unemployment rate it is unfortunately entirely reasonable to expect the 10% barrier to be broken in the last few months of the year. As more people are losing their jobs, more families will be struggling this upcoming Christmas. It leaves me to wonder how the holidays will affect the economy this year, will the other positive economic indicators counteract President Obama's pessimism - or relative skepticism - about the economy? Or are we looking at a more humble and frugal ending to the year...
Comments
Christine,
First you need to realize that the jump is GDP is not due to consumer spending or business, but due to spending by the government by way of printing money, it is a "phony" number in that sense as it no way means there is any change fundamentally in the economy. Home sales likewise are being driven by 1st time homeowner credits of $8,000. To make it simple, there is nothing here that has fundamentally improved to result in more jobs, hence the jobs will continue to be shed, and the unemployment rate will continue to rise.
Letting the Bush tax cuts for business expire will hurt. The possilbe passage of Healthcare reform hurts. Cap and trade hurts. Trying to control banks hurts. etc. etc. etc.
We were promised that if we passed the stimulus bill, unemployment would not go above 8%, and that if we didn't pass it we could be looking at 9% unemployment. We passed it and are looking at close to 10% and still rising. Obama's plans are failing badly.
Hi Brenden, I understand where you are coming from, and I am trying not to make this too political. Simply stated; the point is that YES, jobs are still being lost. Although the housing market does LOOK like it is improving, it will not factually improve a lot for the next few months or year to come.
I don't think Obama, or anyone else, can really make guarantees when it comes to the economy. Unfortunately.
Job loss...Been there. Done that. Yep, still 'there'. My heart goes out to those still getting 'pinked'. We must stay strong.
For me, losing my job was one of those defining moments in life. I knew I had a choice: I could choose to lose my way (my mind) or rise to the challenge and follow what my Spirit tells me to do, always remembering that I am more than a statistic on the news.
I'll share with you what I was told the day I got "set free" (laid off) from my job: "This is a new chapter in your life. WRITE ONE HELL OF A CHAPTER!" And I did just that! Will you?
So if you just need a break from the doom and gloom, let me send you the link to a FREE book download...no strings attached, really! Sign up here: noexpertsneeded dot com
Yes, times are tough, but it doesn't mean that we can't still give back to one another. This is simply my way...
take care,
Louise Lewis, author
No Experts Needed: The Meaning of Life According to You!
noexpertsneeded dot com
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