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.