Global Economic Crisis http://www.economiccrisisblog.com Thu, 11 Mar 2010 15:02:03 +0000 http://wordpress.org/?v=abc en hourly 1 The US economy and lessons from Greece http://www.economiccrisisblog.com/economics/the-us-economy-and-lessons-from-greece http://www.economiccrisisblog.com/economics/the-us-economy-and-lessons-from-greece#comments Thu, 11 Mar 2010 15:02:03 +0000 John White http://www.economiccrisisblog.com/?p=921 The US economy and lessons from Greece
There are many folks who say that Greece is too small an economy to make a dent on the US economy which straddles the world economy space like a colossus. While this is true, it goes without saying that there are lessons for the US economy from Greece, and it would be good for the US economy to pay heed to this. The problem is that like Greece, the US economy also has huge and increasingly mounting debt, that does not seem to show any signs of abating. The debt has grown to such an extent that it could swamp overall economic output. And like n the case of Greece, the debt of the US economy is owed mostly to foreigners. This is what is the scariest part.

If foreigners choose to withdraw money from the US Treasury, the US economy could collapse, just like Greece has seen it own economy lose the confidence of international investors. The UD economy would just get frittered away if it lost investor confidence and could be brought on its very knees. This would affect all Americans and while the US has never defaulted on its debt, this cannot always be so, unless the debt is brought under control.

]]> http://www.economiccrisisblog.com/economics/the-us-economy-and-lessons-from-greece/feed 0 Immigration reform and the US economy http://www.economiccrisisblog.com/economics/immigration-reform-and-the-us-economy http://www.economiccrisisblog.com/economics/immigration-reform-and-the-us-economy#comments Wed, 10 Mar 2010 17:15:12 +0000 John White http://www.economiccrisisblog.com/?p=919 There are many folks who are very concerned about the question of immigration reform in the US. This is rather surprising because over the last 300 years or so, America has been a country of immigrants. If you did not have people coming from the different parts of the world this country would not have grown to be the rich and advanced nation that it has grown to be. You had people coming in from the UK, all of Europe, many nations of Asia and settling down in this country. These people started calling the USA there home and worked hard to make it the most powerful and wealthiest nation on the planet.

Now that the economy is going through tough phase, there are some who are calling out for immigration reform. This is justified to some extent, because there are many illegal immigrants who are pouring in from Mexico in to the country. These people do not have any real skills and technical education to boast of. That is why there is such a great hue and cry about immigration reform. The government is planning to bring about a law to ensure immigration reform. This is welcome as long as it is balanced and just.

]]> http://www.economiccrisisblog.com/economics/immigration-reform-and-the-us-economy/feed 0 What is the real unemployment rate? http://www.economiccrisisblog.com/economics/what-is-the-real-unemployment-rate http://www.economiccrisisblog.com/economics/what-is-the-real-unemployment-rate#comments Tue, 09 Mar 2010 14:59:37 +0000 John White http://www.economiccrisisblog.com/?p=917 There are quite a lot of people who are keeping a close look at the unemployment rate. This is something that a lot of people are worried about. Month after month, people keep on losing jobs and yet the government seems happy to announce that the unemployment rate has fallen from 9.7% to 9.5%. This is quite an amazing figure, given the fact that the US economy has lost as many as 36000 jobs in the month of February, 2010. When the number of people losing jobs is so high, how can the unemployment rate ever go down? It is obvious that there is something more to this than meets the eye.

Some people say that the increase in exports has caused the unemployment rate to fall at a faster pace. This is not fully true, as increase in jobs in some sectors has also come along with a loss of jobs in other sectors. You have to look beyond the bare the figures to realize as to what is the real picture. There are many things and factors that go in to the unemployment rate, and you cannot just look at only a few isolated factors to determined the unemployment rate.

]]> http://www.economiccrisisblog.com/economics/what-is-the-real-unemployment-rate/feed 0 The Chinese economy focuses on creating jobs http://www.economiccrisisblog.com/global-financial-crisis/the-chinese-economy-focuses-on-creating-jobs http://www.economiccrisisblog.com/global-financial-crisis/the-chinese-economy-focuses-on-creating-jobs#comments Mon, 08 Mar 2010 14:59:28 +0000 John White http://www.economiccrisisblog.com/global-financial-crisis/the-chinese-economy-focuses-on-creating-jobs The Chinese economy is the fastest growing economy in the world. This is not surprising given the fact its government has paid a lot of attention to creating new jobs. This is quite different from some other countries which have not done so. There have been measures that the Chinese economy has taken to promote exports and higher factory output. This is why the level of growth in the Chinese economy has been so fast over the past many years. Even when there are problems, the government creates conditions to correct the situation and help in increasing the level of growth of the Chinese economy.

Given the fact that the world economy is quite week at the moment a lot has to be done by the government to ensure that the Chinese economy rate of growth is high. When the external market is not very supportive, there is only so much and not more that the internal government can do in order to help with the increase in economic growth internally. These are the challenges that the Chinese economy faces, as it tries to keep up with the pace of growth required to retain its position as the fastest growing economy in the world, against serious contenders elsewhere in the world.

]]> http://www.economiccrisisblog.com/global-financial-crisis/the-chinese-economy-focuses-on-creating-jobs/feed 0 Bad news for US economy as unemployment rate holds http://www.economiccrisisblog.com/global-financial-crisis/bad-news-for-us-economy-as-unemployment-rate-holds http://www.economiccrisisblog.com/global-financial-crisis/bad-news-for-us-economy-as-unemployment-rate-holds#comments Sun, 07 Mar 2010 15:28:02 +0000 John White http://www.economiccrisisblog.com/?p=914 There seems to be a ding dong battle on, in the US economy and unemployment rate stakes. People are closely watching all the relevant figures for any signs of improvement. People are desperate that the US economy come out of the woods, and to have a situation where the unemployment rate is holding up at 9.7% is not a pretty picture. Payrolls dropped by as many as 36,000 in February, coming after a 26,000 fall in the month of January. While the construction sector laid off people, the manufacturing sector did add some people to the payrolls.

The total loss of jobs since December 2007 has been around 8.4 million, and the unemployment rate which had fallen to 9.5% has inched up to 9.7% again. Qualitatively, skilled people had greater chances of getting employed and to return to the workforce as compared to those with little or no skills. The recovery in the job market has been very uneven, and people who want to get back to work will need to polish their skills and buck up. There is a trend in the IT sector to add people here, with companies like Accenture planning to add as many as 50,000 people in the short to medium term.

]]> http://www.economiccrisisblog.com/global-financial-crisis/bad-news-for-us-economy-as-unemployment-rate-holds/feed 0 Congressional Payday http://www.economiccrisisblog.com/debt/congressional-payday http://www.economiccrisisblog.com/debt/congressional-payday#comments Thu, 04 Mar 2010 23:13:04 +0000 John White http://www.economiccrisisblog.com/?p=898 Should Congress take a pay cut? That is the questions posed on Washington D.C. this week. Huffington Post reports “A bill introduced in Congress would reduce congressional pay by five percent. Representative Ann Kirkpatrick (D-Ariz.) introduced the Taking Responsibility for Congressional Pay Act, which would cut congressional salaries for the first time since 1933.” To help make this decision simpler we have compiled some stats on Congressional pay versus the average American. Check out these staggering numbers.

Congressional Payday (Infographic)

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]]> http://www.economiccrisisblog.com/debt/congressional-payday/feed 1 Services in the US economy expand more than expected http://www.economiccrisisblog.com/economics/services-in-the-us-economy-expand-more-than-expected http://www.economiccrisisblog.com/economics/services-in-the-us-economy-expand-more-than-expected#comments Thu, 04 Mar 2010 14:27:58 +0000 John White http://www.economiccrisisblog.com/?p=896 The US economy is going through one of its all time worst phases after World War II. There is a lot of gloom all around as people are looking for signs of revival and the signals are all mixed. On one hand, there are reports that the manufacturing sector is rebounding, whereas the unemployment rate is at an all-time high of close to 10%. Now there are reports that service industries have picked up pace at a rate faster than anticipated in the month of February. This has raised hopes that the economy would rebound, and there might be an increase in the rate of jobs creation too.

The factory sector in the US economy has led the charge and is now having a cascading effect on the service sector too. There are some experts who are witnessing healthy signs of a broader recovery. This would have a good effect on the phenomenon of job creation and resurgence in the economy. This has had a good effect even on stocks, which have all risen, on the back of all this encouraging data that is emerging from various sections of the US economy. While the European economy may still be in the woods, the US economy seems to be stabilizing after more than 2 years of turmoil.

]]> http://www.economiccrisisblog.com/economics/services-in-the-us-economy-expand-more-than-expected/feed 0 Labor problems not to blame for problems with US economy http://www.economiccrisisblog.com/economics/labor-problems-not-to-blame-for-problems-with-us-economy http://www.economiccrisisblog.com/economics/labor-problems-not-to-blame-for-problems-with-us-economy#comments Thu, 04 Mar 2010 14:26:50 +0000 John White http://www.economiccrisisblog.com/?p=894 It has become fashionable to attack labor unions and blame them for the many ills that plague the US economy. There are many who are also quite critical of President Obama’s relationship with labor unions, and the kind of effect it seems to be having on the economy. Unions are often accused of what is known as ‘thuggery’ and other stances and practices that are viewed as destroying the US economy and jobs too. One of the moves that has angered the pro-management lobby is the appointment of Craig Becker to the National Labor Relations Board. There are quite a few critics who view this appointment as being far too ‘radical’ for comfort.

The allegation that labor unions wreck the economy and destroy jobs is patently unfair. There have been many instances of legislation being passed that have weakened the bargaining power of labor unions and almost left them toothless. The many instances of violence and ‘thuggery’ that have been laid at the door of labor union can be traced to the work of stooges of management. Labor unions fight for the rights of workers, and this is quite essential in a democracy. Those who want to see democracy flourish would do well to stop unrelenting and unjustified criticism of the role of labor unions.

]]> http://www.economiccrisisblog.com/economics/labor-problems-not-to-blame-for-problems-with-us-economy/feed 0 US economy shows signs of higher consumer spending http://www.economiccrisisblog.com/economics/us-economy-shows-signs-of-higher-consumer-spending http://www.economiccrisisblog.com/economics/us-economy-shows-signs-of-higher-consumer-spending#comments Tue, 02 Mar 2010 04:04:42 +0000 John White http://www.economiccrisisblog.com/?p=892 The US economy seemed on its way to recovery, if one is to go by the fact that the manufacturing sector grew in the month of February, and consumer spending rose for the fourth month in a row. This seems to be rather encouraging, in a scenario where people have been closely watching economic events for any signs of recovery. There were other signs being seen in the US economy including factory data which showed that the expansion in US factor data was slower than in the previous month. Most of the growth and the encouraging signs occurred in the manufacturing sector, which has been rising on the back of internal as well as international demand.

On the other hand, US consumer spending data has been rather stubborn, as it has held on to its low growth, caused by lower employment. The unemployment rate has also been in the range of 9.8%, which it has risen to, from 9.5% the last time around. The US economy shed as many as 50,000 jobs in February, up from 20,000 in January. The economy had already shed 150,000 jobs in December, indicating that it will be some time before any improvement can be seen in consumer spending data.

]]> http://www.economiccrisisblog.com/economics/us-economy-shows-signs-of-higher-consumer-spending/feed 0 US economy sheds jobs in February http://www.economiccrisisblog.com/economics/us-economy-sheds-jobs-in-february http://www.economiccrisisblog.com/economics/us-economy-sheds-jobs-in-february#comments Mon, 01 Mar 2010 03:19:01 +0000 John White http://www.economiccrisisblog.com/global-financial-crisis/us-economy-sheds-jobs-in-february There is bad news for the US economy and for those who had been watching out for the unemployment rate to dip. For quite a few months now, people who want some good news on the US economy, have been looking at some news and signs that the unemployment rate may go down. But then this does not seem to be happening. The US economy added a few jobs in the month of November, 09. Then it shed as many as 150,000 jobs in December and 20,000 jobs in January. Now that February is past, it seems there were more jobs that were shed in February also. Irrespective of the stimulus package that the Obama admin has been raving about, the situation does not seem to have improved much.

Since the recession started in December 07, more than 8.4 million jobs have been slashed by companies. The unemployment rate varies between 9.5% to 10% and it may have actually increased in the current month. This is the biggest and the highest unemployment rate in the post-war era, and this does not seem to be abating or letting off steam anytime soon. So if you are a die-hard optimist, the latest figures would not do much to lift your spirits.

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