A jobless recovery means that the overall productivity of the current labor pool is increasing in an atmosphere where no new jobs are being created. The truth of the matter is that jobs are being depleted rapidly on the U.S. front. This means that we are seeing dramatic economic gains for big corporation while they are not increasing their spending on new employees and payroll spending.
No one can predict when US business will start hiring again in America. All new jobs as of late have been in countries that we have already developed a trade imbalance. Bush is a large part of this because since he started his watch, nearly.4 million Americans have lost their jobs. Right now, the unemployment rate is the highest it has been in about a decade. So much for the so-called tax relief he signed that was opposed to create a million more new jobs. I was told that the recession officially ended in November 2001, but all I see are more jobs leaving and more people out of work.
The underlying problem is that growth has remained sub par for an unusually long time. So don’t believe it when you hear politicians say that economic perspective for America is going to help create or maintain jobs. The President has brought most of this on the American public. Although under his tax plan, the average American family of four will be able to keep at least $1,600 more of their own money annually, it really just benefits the wealthy. His tax plan thus far has managed to increase the upside of the economy but the question is at whose expense? The central problem for me is the elimination of dividend taxes. Although I do own stocks, bonds and securities, the plan would in essence increases investors' returns, which mean that stocks can be in a better position to carry higher valuations. In addition these higher valuations will come at the expense of American citizens. Already we see a rise in the federal deficit, and pundits estimate that it will be more than $500 billion by the end of the year. Couple this with the number of American companies, federal and state governments who are exporting jobs abroad, America’s future seems extremely bleak from an economic perspective.
Companies the likes of American Express, Levi’s, Earth link, Kodak, and Verizon are elimination more jobs at home and relocating to the cheaper labor havens of South America and Asia. So I just say it may be a good time in America, maybe some of our folk will decide to start a business as opposed to look for a job.
