What Is Painfully Obvious To Many
Readers suggested this topic. “A topic about jobs in general would be very appropriate for labor Day weekend.”
One posted this link, “Recovery talk seems to be gradually giving way to Federal Reserve easing talk.. MarketWatch, ‘The U.S. economy did not add any jobs in August, a weak performance that casts a cloud over the sputtering recovery, economic data showed Friday. ‘Yesterday’s data [on ISM manufacturing] failed to point to a sharp slowdown in the U.S. economy. Today’s don’t point to any kind of self-sustained virtuous circle, though. Is zero growth in employment the kind of signal Ben Bernanke was waiting for to announce QE3? Maybe,’ said Alexandra Estiot, an economist at BNP Paribas.”
“What’s it going to be: High unemployment or high inflation? Tough choice ahead for the Fed…And if pundits say ‘Quantitative Easing’ often enough, will the Fed be forced to enact QE3?”
Another added, “Or high unemployment AND high inflation? That seems to be the status quo.”
The Daily Tidings. “Fred Dickson, chief market strategist for Northwest financial firm D.A. Davidson & Co., said the Fed’s quest is to provide a floor for the housing market, where a 30 percent drop nationwide in real estate prices coupled with low interest rates makes for the best time to buy in 50 years. But there has been no rush to buy.”
“‘There seems to be reluctance by potential buyers because there might be lower prices six months from now. The problem isn’t cash, but in some cases the question is whether someone will still have their job a year from now,’ Dickson said.”
“Dickson argues against the idea that the country is slipping back into a recession. ‘Few people realize the economy is operating at an all-time high by the broadest measure — the gross domestic product (the sum of all goods and services produced in the U.S.),’ Dickson said. ‘What people don’t realize is that we’ve moved above the goods and services at the peak in 2007.’”
“The bad news, and what is painfully obvious to many Southern Oregonians, is that double-digit unemployment remains static.”
“‘What’s happened is that GDP has improved without any help from the housing sector, which is important here,’ he said. ‘What’s happened in all areas of business, nonprofits and government organizations is that they continue to find more productivity per worker than two or three years ago. That’s why only 1 million of the 7 million people who lost jobs have been rehired.’”
From Virginia Business. “Now is a good time to build. With business in the construction industry down about 40 percent over the last two years — both nationally and in Virginia—general contractors are willing to negotiate on price, and manpower is readily available. That was one of the themes under discussion at the Virginia Beach Convention Center where more than 1,000 people gathered for the Megavention, one of the largest design, construction, real estate conferences in the mid-Atlantic.”
“Steven C. Vermillion, CEO of the Associated General Contractors of Virginia, said construction employment in Va. is down about 30 percent from two years ago, dropping from 265,000 to 180,000 workers. ‘It’s tough now. The federal government is ending stimulus programs, and the work for BRAC is winding down. We keep telling the feds and the state that this is a great time to build in terms of pricing and manpower,’ he said.”
“One thing that would help put the construction industry back to work is a focus on rebuilding infrastructure, said Vermillion. ‘I’m not just talking roads. This includes water treatment plants, schools. Drive around elementary schools and see how many trailers are parked outside.’”
The Associated Press. “The president of the Federal Reserve bank in Kansas City, Mo., said Monday that the United States must make significant reforms, including reviving the manufacturing sector, to restore confidence in the economy. Thomas Hoenig said decades of lost manufacturing jobs, rising debt and long-term obligations have put the nation’s economy and future at risk. He said the United States needs to create a climate to promote manufacturing more goods that the world demands.”
“‘You don’t create jobs, you create an environment to create jobs,’ Hoenig said.”
“He said the United States had become too dependent on consumer spending to drive growth, but that has slowed as consumer debt increases and savings rates decline to near zero, eliminating any ability to invest capital. Hoenig said Washington policies alone would not revive the economy, such as providing short-term stimulus packages or adjusting monetary policies with increased regulations.”
“‘Congress can’t solve this problem. This is a societal problem,’ he said. ‘If we continue to borrow more than we can afford, then all the wealth is paid in interest.’”
