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| Economy |
| Jobs Report - Bump or Slump? |
| 2012-04-09 |
| The March setback in hiring will prove temporary as the U.S. economy, in its third year of expansion, now is better equipped to overcome a slowdown in Europe and rising fuel costs, economists said. They say the data don't signal a repeat of 2010 and 2011 - when hiring was derailed after promising starts by concern about government debt, energy costs and natural disasters. SO the natural disasters have tapered off, for the moment. On the other hand... Economists at Bank of America are among those concerned that government-mandated spending cuts and tax increases will cause the economy to slump later this year. Ethan Harris, co-head of global economic research for the bank estimates the U.S. faces a "Greek-sized" fiscal tightening in December amounting to about $580 billion, or 3.9 percent of gross domestic product, he wrote in a Jan. 26 note. Why did this Greek Tragedy report remain hidden for ten weeks? In 2010, the emergence of sovereign-debt concerns in Europe weighed on the U.S. economic outlook. Those same fears resurfaced in 2011, in addition to rising gasoline prices, an earthquake and tsunami in Japan and a budget impasse in Washington. All contributed to a slowdown in hiring in mid-year as employers were reluctant to bring on new workers. Pretty much nothing has changed since 2010. So with another disaster, the economy will slump, just like 2010? As for disasters - how about riots in Egypt, civil war in Libya, Syrian meltdown, or bombs falling on Persian nuclear sites? Businesses and households will grow increasingly uncertain about the outlook, pondering questions like how long it will take for a lame-duck session of Congress to act, he said. So a stalemate drags down the economy, which is bad for the sitting Prez? |
| Posted by:Bobby |
| #2 But the Chosen One has clicked his heels together three times and said "You believe!" |
| Posted by: gorb 2012-04-09 23:24 |
| #1 The US economy is not expanding, although the number of people who have given up looking for work IS. |
| Posted by: Anguper Hupomosing9418 2012-04-09 23:20 |