Friday, December 5, 2008

Unemployment Numbers

As the Unemployment numbers continue to worsen one must remember that the reported numbers are under reported because of the way the Bush Administration Labor Department changed the way that the unemployed are counted. The reported numbers could be way off because the Bush Labor Department changed the way it counted those that had exhausted their unemployment benefits and did not count those that did not collect unemployment benefits. Who knows how much we would have to add to the reported numbers, even a Conservative approach would mean adding at least 5% to the reported numbers.

The worse the unemployment gets the worse every segment of the Economy will become. The Federal Government must now consider a direct stimulus package of aid to the America Family. Without spendable income in the hands of American Families the consumer sector of the Economy will continue to rapidly deteriorate which will cause the mortgage defaults to get worse and the dominoes will fall accordingly to the retail sector, the wholesale sector and the manufacturing sector, all of which will cause unemployment to rise even more. The way to spur on an economy is to get spending money into the hands of the people who will pay off debt and buy consumer staples that will create jobs in retail, wholesale and manufacturing. The other vital step towards putting the Economy on firm footing is to regulate the interest rates and over limit fess and late changes in the credit card industry. The excessive interest changes allowed by law are stifling the buying power and the pay back efforts of most consumers. The new Administration must certainly take a multi-prong attack on unemployment but a vital part of the attack is to get a flood of spendable cash into the hands of the people and stop giving it to the financial institutions that created this mess by using the policies implemented by the Republican Administration of George W. Bush.

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