Nine Reasons the Economy is Not Getting Better
Jobs data paint a discouraging picture of more pain to come
In recent times, Americans found myriad ways to fuel spending, even as incomes stagnated: borrowing against the once rising price of their homes and tapping plentiful credit cards. No longer. The paycheck has returned as the primary source of spending, and pay is eroding even for those who have jobs. This process is nowhere near complete, and, until it is, the economy will barely grow, if at all, and may well oscillate between sluggish growth and modest decline for the next several years until the rebalancing of the excessive debt has been completed. Until then, the private economy will be deprived of adequate profits and cash flow, and businesses will not start to hire. Nor will they race to make capital expenditures when they have vast idle capacity.
In other words, there are many more reasons today to expect the downturn to continue than to expect a turnaround. Consumer spending and residential investment could be even weaker than most estimates, and, as the level of fiscal stimulus begins its decline in the second half of 2010, we may be facing an even more difficult future.
No wonder poll after poll shows a steady erosion of confidence in the stimulus measures. One survey even showed 45 percent believe the limited results suggest they should simply be abandoned midway. The disappointment is understandable—but that would only make things worse. So what kind of second-act stimulus program should we look for? This time, it should not be an excuse to pass a lot of programs like those in the first stimulus package that do not really have the kind of multiplier effect on job creation and on economic growth that was intended. In any event, given the trends, it is absolutely critical that the Obama administration not play politics with the issue but really begin to prepare a second stimulus program, so that if the economy does take a major downturn, it will be possible this time to provide much more rapid government support to infrastructure spending that will maximize the creation of jobs. The time to get ready is now.
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Reader Comments
Disciplinary Actions for Politicians; and other fees besides Taxes!
*They always want you to focus on taxes; and not all of the other fees, and ways that they get our money!
*Politicians should experience write-ups, and disciplinary actions just as the rest of US.
*Many people could avoid foreclosures, and evictions; if people would pay them $100/wk. to live in their homes, etc. You could move in a total of 13 or 18 people into your home. Of oourse, there are many rules against saving your own residence in that way...
*I want to hear about some huge Haiti, DR, and PR drug busts, etc. Yet, then again some people there could utilize some of that crap to anethetize their pain and hungers... Why don't we hear about the drug lords there being arrested? Are they their politicians, and military???
*America comes back when it manages itself; and stops trying to manage everywhere else...
*53,000,000 + people reside in 6 SE USA States FL GA AL TN SC & NC...
And..
They can stop taxing us to death.
what i think
I think it’s all the foreigners that keep coming in to be country I mean come on can we just get up and go to some of the other contras? the answer to that is heck no we can go to Mexico and may get a good job but we can’t just buy a home like they can or rent one I mean we are only allowed 90 days at a time but they get to come to the use and work I think they need to pass a law that you need to be a us citizen to buy a home in America. And that will lead to the end of job loss!!!!!!!
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