| Despite talks about growth of the economic situation, unemployment rate is still rising in the USA. This trend can weaken the Democrats position.
Although economic downfall is said to decelerate, the unemplyment rate is expected to increase and exceed 10% within a year. Increasing poverty and poor economic improvement can give even more grounds for accusing Obama and parliamentarian Democrats of abuse of public money. If the situation remains without changes, the government which has been justifying its spending by the attempts to create new working places and improve the economic situation, will have tough times, particularly during the midterm elections of November 2010.
The economic policy of The president entails investing 787 billion dollars in renewable energy, health care, education and vocational training. The government claims that this measure will help to make the thriftiness stable and create jobs. This optimistic vision, however, is not shared by economic experts. By their forecasts, the unemployment is going to exceed 10% in 2010, and its return to the pre-crisis level (about 5%) can be anticipated not sooner than in several years. The anticipated development of the employment situation is going to sternly affect children, low-skilled workers, immigrants, African and Latin Americans.
Lawrence Mishel, president of the Economic Policy Institute, is said to assert that the rate of structural unemployment will entail unbelievable damage to many communities and verbalized his surprise with the carefree standing of American citizens. According to statistics, since December 2007 the number of jobs in the U.S. Has reduced by almost 5.7 mln. Although recent months saw a slight improvement of the employment situation and rise in consumption, the development does not change, and the number of jobs still is getting reduced.
Making things worse, American companies take pains to re-employ workers and present know hows into production, thus making their employees redundant. Moreover, the economic deterioration nearly destroyed the economic sector and the auto industry. Even government interference is ineffective to recreate nany of the jobs in these sectors.
"The rate of unemployment has not reached its highest point, it will persist," augurs Mishel. The political debate seems to indicate that the deterioration is about to finish, but we still need to discuss ways out of the real crisis, i.e. to recreate jobs." |
