WASHINGTON -- Increasingly alarmed over bleak employment forecasts, the Obama administration is searching for ways to boost job growth without adding to the federal budget deficit.
White House economist Christina Romer, in remarks that ratcheted up the administration's pessimism, told a congressional panel Thursday that "labor market conditions will remain painfully weak through 2010." She said that the jobless rate, which hit 9.8% last month, would likely remain "at its severely elevated level" for at least another year.
1 comment:
This is true for any market economy which are self correcting. There is as much any government could do, there is as many incentives that a government could offer. At the end of the day, it is upto the market to correct itself.
In terms of employment again, it is going to be the market which will eventually solve the problem. However, the question is how long it would take. Many analysts and economists have been trying to put a date on the recovery. But it is unwise to base investment decisions or any decisions on these predictions since they are all based on estimates rather than real numbers.
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