Unemployment rate is not full picture of economy

Recently we learned that unemployment rates reached 9.4%, a high since the early 1980s, but this is not the only indicator that the economy is not doing well according to a study performed and published Friday, June 12, 2009 by USA Today. The employed are also seeing less on their paychecks each month as less overtime is being offered and many are making a transition towards part-time work to save their jobs. The average person worked a little more than 33 hours last month, down since a low from 1964 and businesses have

(AP Photo/ Josh Anderson) cut wages by 6.2% since last year. 9 million Americans that are currently working in part-time positions say they would rather have a full-time job. About the only place where you can count on a job with enough hours and good pay is in the government sector. Government pay has risen by 6.1% as government spending continues. 

More people are out of work longer than before as well. The average time spent looking for a job after losing one has risen to 22.5 weeks, which is the longest time since the Great Depression. Some economists claim that Congress may be part of the problem by offering higher unemployment benefits that last longer for many out of work Americans. James Sherk, a labor economist who works for the Heritage Foundation claims, “The humanitarian benefit of unemployment benefits also causes people to look with less intensity for a new job.”

I think it is important for us to stay positive and not allow the media to thwart our success in being innovative in the ways that we make money, but it is also important to note the government’s involvement in this economic crisis as well. We were promised with the passing of the economic stimulus package early this year that we would see the economy stabilize. Instead, our economy has headed for further decline and we continue to spend a record amount of money that is not doing little to benefit the nation. The best thing the government could do to help the economy right now would be to halt spending in any areas possible. We do not need more entitlements to provide less motivation for people to find jobs and scare the employed out of spending. The amount spent may cause long-term damage to our economy that may even cause another Depression. A Rasmussen poll conducted last week stated that most Americans wish that spending as part of economic stimulus plans would halt. If the government decides to implement this, it could benefit the nation and the economy.