Grasping at Straws

Who would have ever imagined the the 2008 election would have resulted in the tremendous deficit we are in today and the disastrous debt of tomorrow? Today, Obama signed another multi-million dollar bill trying to bring the economy out of the "Great Recession." This spending is going to stimulate the economy, yes, but it will also cause inflation which is not what the country needs. Oh, its just another $20,000,000 to add to the tab... Great. This bill hopes to reduce the number of unemployed workers, but I believe that once jobs start becoming available, the number of NILFs will decrease and add to that number, not the other way around. So the rate will increase and the extent of the recession will emerge. I have a feeling the number of discouraged workers is a lot higher than anyone expects. But, we'll have to wait to see if this plan will do anything for the economy.

Florida Tomatoes

Seventy percent of the tomatos in Florida froze due to a cold snap, and fast food restaurants around the country are feeling the effects. The low supply has caused an increase in prices and a decrease in quality. Therefore, many companies have decided to use them by request only. I feel sorry for those farmers, but I really could care less if I didn't have them. One fruit, I care nothing for.

Just Hire a Couple People!

Yay! Less people are applying for unemployment benefits! Not because they've been hired, but because they are discouraged and would not recieve financial support.

You guessed it, the number of available jobs remains low. So more people are living in debt. And unfortunately, companies are waiting to hire until they see the demand for products to rise. What they don't realize, however, is that there will not be demand for non-necessary products if unemployment remains at this height. I mean, really, just hire a few more people, and in the long run, the market will grow.

March Manufacturing Activity Grows

The Federal Reserve in Philidelphia reported a growth in the manufacturing activity in the Mid-Atlantic area. It also reported a slow but steady decline in unemployment. Most companies and manufacturers in the area are optimistic and expecting economic growth. These are all signs that the economic recovery is continuing. http://www.businessweek.com/ap/financialnews/D9EH5FJ00.htmFJ00.htm

U.S. Economy: Prices Stagnate, Leading Index Climbs

Good news for the US economy: in dealing with unemployment, high inflation has not occured. Stagflation (high inflation and unemployment) is very difficult for an economy to overcome. The low inflation seen this past year will keep prices low, interest low, and in the end lower unemployment. In fact jobless applications dropped by 5,000 the week of March 7th, a trend that will hopefully continue.

http://www.businessweek.com/news/2010-03-18/u-s-economy-consumer-prices-stagnate-leading-index-climbs.html

The Perils of Pay Less, Get More

Traditionally poorer societies are very concerned about have low taxes, and wealthier societies don't mind the high taxes if they can have lots of government services. However The United States is currently stuck wanting lower and lower taxes, and more and more government services. With the current recession this problem is somewhat inevitable, but it is necessary for economist to start planning how to reduce the deficit. If the deficit continues to rise uncontrollably eventually inflation is increase, especially in the bond market.

http://www.nytimes.com/2010/03/17/business/economy/17leonhardt.html?src=me

Equipment fuels a modest rise in industrial production

The past two months have seen a slight increase in demand for computers and semiconductors, and the industry has responded by speading up production. New technology advances in equipment have also helped create a rise in production. Increased production increases the supply, and helps to keep prices low and provide more goods for people. This report shows that even though changes in our economy may be small, they are in the posotive direction.
http://http://www.washingtonpost.com/wp-dyn/content/article/2010/03/15/AR2010031502720.html

Extended Unemployment?

In the times of tough economies, the government has done the best it can to help the citizens out of it, but this is a first. The government is extending the length of time one can receive unemployment benefits. Someone can recieve payments for twelve months now instead of six as long as they provide proof of looking for employment. The graph above shows the unemployment rates of the states. Michigan having the highest unemployment rate in the US.

For me, this is a double edged sword:

On one hand, people are getting the funds to pay for goods and services they need, but this in the end, is my tax money. And I do not want my money paying for people who are not really looking for jobs. They can go to interviews, and do job searches to have "proof" of searching. But I believe that some people are taking advantage of the system, and should not be allowed to recieve benefits for twelve months.

Consumer Credit Report Finds Upswing in Vehicle Loans

According to this article, Americans have started spending more and borrowing more to buy cars. This is most likely due to more optimistic view of the economy and the job market. When people feel secure, and believe they will have money for the future, they are more likely to spend money. This may be an example of an increaseing MPC (Marginal Propencity to Consume) This helps the economy to grow and mulitiplies the effect of government spending.


http://http//www.creditloan.com/blog/2010/03/08/consumer-credit-report-finds-upswing-in-vehicle-loans/

A Stable Unemployment Rate

We have good news for once! The unemployment rate remained at 9.7 percent in the month of February. That's a positive sign for the economy.

However, there is bad news (I mean, really, can there be good news without the bad?):

36,000 more jobs were cut from the labor force and the number of discouraged workers (Including myself) raised to 1.2 million people. Many people are working part-time to earn some money but are unable to find the fulltime jobs they desire even though they are qualified for the job.

So much for it being good news....

Supply and Demand on Housing

In the past two months the housing market in the United Kingdom has seen an increase in supply without an increase in demand. The increased number of houses are due to more building being constructed and put on the market. However, the demand for houses has not increased correspondingly. This results in a surplus of houses, declining prices (which they have seen) and which will eventually decrease supply and increase demand, maintaining equalibrium. :)

http://http//www.findaproperty.com/displaystory.aspx?edid=00&salerent=0&storyid=23465

Actually Good News

The reports for the month of February are in and there's good news! And no catch! For the seventh straight month, manufacturing has increased production, meaning they will start hiring more employees. This might be the beginning of an upturn in the economy. Even if its not, there are more jobs available to those who are looking. The economy is certainly fragile still, but quite possibly, by the time we graduate from college, the economy will be back in its boom.