| Despite talks about improvement of the economic situation, unemployment rate is still rising in the US. This development might weaken the Democrats position.
Although economic decline is said to decelerate, the unemployment is expected to grow and exceed 10% during a year. Growth of poverty and unsubstantional economic growth could provide even more grounds for blaming the president and parliamentarian Democrats for abuse of public funds. If the development persists, the government which has been justifying its expenditure by the attempts to create new working places and improve the economic decline, will have tough times, especially during the midterm elections of November 2010.
The economic policy of Barack obama entails the investment of 787 billion dollars in renewable energy, health care, education and vocational training. The government affirms that this measure will help to stabilise the economy and create new working positions. This optimistic vision, however, is not shared by financial professionals. By their estimates, the unemployment is going to exceed 10% in 2010, and its return to the pre-deterioration level (about 5%) can be anticipated not sooner than in a few years. The expected development of the employment situation is going to severely affect children, unskilled workers, immigrants, African and Latin Americans.
Lawrence Mishel, president of the Economic Policy Institute, is said to allege that the rate of structural unemployment will produce unparallelled damage to many communities and verbalised his surprise with the carefree attitude of American people. According to statistics, since December 2007 the quantity of jobs in the U.S. Has decreased by nearly 5.7 mln. Although recent months showed a slight improvement of the employment situation and increase of consumption, the tendency remains unchanged, and the number of jobs still diminishes.
Making things worse, American companies spare no efforts to re-employ workers and present technological improvements into production, thus making their employees redundant. Furthermore, the economic decline virtually destroyed the financial sector and the auto industry. Even government interference fails to restore nany of the jobs in these sectors.
"The rate of unemployment has not reached its critical point, it will last much thirster," alleges Mishel. The political debate appears to suggest that the deterioration is behind us, but we still need to discuss ways out of the real crisis, i.e. to recreate jobs." |
