The Economy

Associated Press
Employers Slash Jobs by Most in 5 years
by Jeannine Aversa 03.07.08

The headline read Employers Slash Jobs by Most in 5 Years according to the Associated Press.
Is this really a surprise? Maybe not, since our economy has been spiraling downward for some time.
The latest report from the Labor Department is that the unemployment rate dipped to 4.8%. Some of the biggest cutbacks were in construction, manufacturing, retailing, financial services and a variety of professional and business services. One reason for the high unemployment is that many people get depressed looking for work that they can't find and stop looking altogether.
Another is the cost of child care. Some people seem to work just to pay the cost of child care and so they decide that it doesn't pay and leave work as well (especially those in low paying jobs).
The government thinks that by making more loans available that this will help the situation of our economy. How is this reality? Alot of people who are unemployed due to cutbacks or not already have loans and likely behind in payments or already in foreclosure. The govenments solution; lets give the American people more money to owe, put them into more debt, as the foreclosure rate keeps rising, just won't work.
I'm also trying to understand who are the ones that will be qualifying for the loans? Isn't it more important to get the work force going again, maybe raise minimum wage instead of outsourcing jobs?
According to the article the average hourly wage is $17.80. I would like to know where, certainly
not in Chenango county. Anyone can make up an average, all the person or group has to do is find the numbers that he wants to add together to make the point.
The government has just passed an economic stimulus package, including tax rebates and tax breaks for businesses. I don't think this is going to help the economy; it may help a person make a payment, or go out to dinner, or put the money into savings, but not to spend it all.
The other answer that the government seems to think will help is to cut the interest rate.
However, the people with the loans aren't getting the cut,the banks are. Again, how is this going to help? In order to be able to qualify for a low rate loan, your credit score has to be at least good. The average credit score supposedly is 692. Again, I don't know where that average is. If your score isn't good enough your interest rate is higher. Therefore, the ones who need the lower rate will still be trouble because their problems have caused their scores to be poor.
The next subject that the article discussed was oil prices. The price keeps going up. OPEC doesn't want to produce more, they like the demand to be higher then production causing higher prices. Why doesn't our government take action towards the oil companies? With the prices rising, those who have jobs ( with low wages ) won't be able to afford to go to work. I have a controversial idea. We went to war, defeated a dictator, freed the people. The country is rich in oil, so why isn't it ours for the taking? Througout history when one country fights another (for whatever reason it was started or finished) and wins, the flag is placed and you keep the land. This has been going on from the beginning of man.
I do have faith that as always the economy will rebound, the housing market will rise, employment will go back up. With all that is wrong we still live in the richest country in the world. Everyday it gets a little better. We still have our freedom, like the first amendment that allows us to express our feelings.