Sunday, January 24, 2010
Unemployment up and so is optimism?
Despite the unemployment rates given in December some analysts are optimistic about the country going in the right direction. In december only 4 states showed a decrease in unemployment rates. The rest of the nation either saw no change or joblessness went up. The report also noted that the unemployment rate in all 50 states is higher than the year before. Michigan was the highest at 14.6%. To me the first year economics student this looks like a bad report and definately not a sign of improvment or the right decisions being made. However senior economist Craig Thomas states, "It's been tough, but we are certainly here at the turnaround. In a few months these numbers will be revised up significantly to reflect the trends we're seeing nationally." Hes talking about the 11 states who have added jobs and despite the nation losing 85,00 jobs the unemployment rate for the nation held at 10%. I hope we are improving as a nation, but im not sure the data supports it. Maybe we are coming out of the recession and this was just a tiny set back. Hopefully Thomas is right when he says, "It's always disappointing to see these numbers, and it creates some wavering on the idea of the recovery progressing, but if you look at the hard evidence we are moving toward recovery."
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As I noted in my comment to another blog post "New York" trouble, what these analysts are probably looking at is recovery in the stock market and in other other institutions which don't directly affect the lives of the general population. What I said there is that economic recovery of a nation occurs when the economic realities of the general population actually improve, rather than when there is improvement in areas of the economy like Wall Street. However, what the analysts are suggesting is that an improvement in Wall Street means that general economic recovery is likely to follow.
ReplyDeleteFor the depth and the length of a recession like the one we just experianced yes this looks very good for first years students, hopefull we will catch the encourageing updraft of a recover after we all exit college and especially after graduate studies for some of us. As for a previous comment saying that unempolyment stayed steady after plunging four percent in the last couple of years is not affecting the wealfare of main street I would have to disagree, thats 400,000 people who kept their jobs last month.
ReplyDeleteunempolyment rate had been increased due to the financial crisis.People realized it became harder and harder to hold a job or find a job during that time period.But I believe the situation will get better and better, when I saw this post, it is hard for me to understand about it is sign of improvment or the right decisions being made either,I agree with Josh...but I also think we are progressing recovery now...A,E
ReplyDeleteHas anyone read any Barbara Ehrenreich? Her works include "Nickle and Dimed" (which is this great book where she goes under cover as a minimum wage worker and tries to survive off the pay) and her latest novel is titled this: "Bright-sided: How the Relentless Promotion of Positive Thinking Has Undermined America". I haven't read this work myself, but I know that it discusses how sometimes people are blinded by optimism, and become very out of touch with reality.
ReplyDeleteOptimism is, without question, one of the most important tools in getting through life, I know this from experience. Yet any good thing to an excess is as detrimental as it is positive.
I remember reading a report few days ago which says the economy is recovering now. I have the same thought with Evan that hopefully we can catch a good chance when we graduate from college.
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