This article states that recession is very likely over, but the growth rates may not be strong enough to quickly reduce the unemployment rate. The article emphasizes that population growth also contributes to increasing unemployment. According to Barack Obama, the economy needs to create 150,000 jobs every month just to keep up with increase in population.
4 comments:
A good sign that President Obama sees the economy will begin to grow again. It is a little scary to see that unemployment will remain high and quite possibly for more years to come (especially since most of us will be entering the work force after graduation). When will the unemployment rate go down? Can Obama resolve this problem? Only time will tell...
I believe that until the unemployment rate will remain high, the inflation rate will also be increasing. Since Obama's stimulus concentrates on consumers it moves aggregate demand without moving aggregate supply right away. Consequently, the price level will be high. It is indeed a thing to be concerned about because high employment means that firm will not be able to expand for some time.
I believe that this will be a slow long process ahead for this country in increasing the unemployment rate. But like history has shown things will eventually get better as the unemployment rate will decrease and people will find jobs.
Both very good points made by Tonya and Chris. It is a great sign that President Obama believes that the nation will again begin to grow again relatively soon, however it is also true that with high employment firms will be less likely to be able to expand very quickly. I also thought it was very sobering to hear that the Fed Chief said that growth may not be strong enough to quickly reduce the unemployment rate.
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