Tuesday, January 1, 2013

Jobs in america


Nothing has got the media and public attention in America like the skyrocketing unemployment that has characterized the economy in the recent times.  In March alone, 663,000 Americans lost their jobs pushing unemployment rate to a high of 8.5%   in a report realized to the public by the Bureau of Labor Statistics. The threat of a deteriorating American economy became a very contentious issue in the run up to the last year's general elections. Four months down the line, it's yet to be concretely with (Hindery, 2009)


Speaking during a media briefing in New York, Nigel Gault from IHS Global Insight registered that it will be impossible to turn around the economy in the meantime even hinting that unemployment rate was set drop to 10% before it reverses (Scheneiderman, 2009). A recent CEO Business Roundtable Index of -5 done between March 16th and 17th is the latest indicator of the falling pessimism about the US economy.  This index becomes the worst after another one done last November which stood at 16.5.  Harold McGraw-Hill, CEO Business Roundtable remarked that we are yet to see any improvement in the market condition. As a result they anticipate a drastic drop in sales over the next quarter.  These sentiments come after the government released grim figures that the economy had shrunk by 6.3% within the three months to April.  In wake of these biting realities companies are scaling down on their employee base, some are merging and others shutting down (Tali, 2009). American hope has been squarely laid on President Obama's Administration. The Congress moved with speed to pass the Economic stimulus bill which was signed into law almost immediately. In a poll conducted by the New York Times and the CBS News and released on April 5th showed that American were very hopeful of the economy turning around signifying a revived spirit in the face of economic downturn.  A significant 69% of the respondents commended the administration and hailed president Obama's response to their plight against a paltry 31% who gave nod to the republicans. However, a whooping 70% expressed their fear that someone in their family will lose a job in the preceding 12 months. Obama administration has come up with ‘Buy American' policy to encourage consumption of domestic product and services. But this isn't going down well with some critics let alone her trading partners (Nagourney, 2009)


Feldman (2009), on a business tour of India encountered protests from Mumbai who called on America to pen up its doors to the international community in abandon her protectionism policy. Their protests come amid the US senate vote in February this year that prohibited financial institutions from hiring immigrants on H-1B visas cleverly locking out foreigners from the American job market. The question in our minds is whether by doing this we will be able get revive the economy.  Critics argue that a country must allow foreigners who will play a significant role in boosting the economy. For instance when protectionism was applied in the Great Depression, it failed to pull the economies out of the crisis but compounded it plunging the world economy by an overwhelming 60% between 1929 and 1934 (Friedman, 2009)


Obama's stimulus plan is expected to bolster the economy through mortgage restructuring, lend to businesses and bailout out firms hit by the credit crunch.  General Motors has since issued a statement to the public that it may be one the verge of bankruptcy.  The trucking industry has since lost 138,000 jobs from December 2007 (Kirchhoff, 2009)


LETTER TO SENATOR JOHN BARRASSO, US SENATOR WYOMING

TO: Senator John Barrasso,


United States Senator, Wyoming


100 East B Street


Suite 2201


Casper, WY 82602


Main: 307-261-6413


Dear Sir,


RE: SOLUTION TO CURRENT UNEMPLOYMENT CRISIS

I would to draw your attention to the biting unemployment crisis in the country. It is true that Obama administration is being looked upon by every one to revive the American dream and get the economy moving. As a result, billions of dollars have been approved in a government bail out of the ailing financial system. This has meant that funds have to be redirect from other noble and equally important healthcare, reforms and other investments. The massive economic bailout will exacerbate the already existing Federal debt and jeopardize America's position in international trade against countries with high financial leverage like China. Furthermore, funds from this stimulus mainly target high earners which mean they will not achieve the goal of restoring confidence in the crumpling financial system.


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