Go to full article : http://www.usatoday.com/money/economy/story/2012-09-09/jobs-growth-unemployment-fed/57720352/1
Economists see Fed action as likely, but with little benefit ... USA TODAY ...
Go to full article : http://www.usatoday.com/money/economy/story/2012-09-09/jobs-growth-unemployment-fed/57720352/1
13 Comments
Jordan Cogburn
9/21/2012 04:59:53 am
Because of the Unites States weekened economy, we are now at a mere 2% growth rate which is unsatisfactory. The goal here is to increase the U.S. employment and provide more jobs to the public so that we may eventually get back on our feet. With this high unemployment rate and below average labor force, something needs to happen quickly and action needs to be taken before the United States catches itself in a worser predicament.
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ECO_10am_Alison Nguyen
9/21/2012 11:00:46 am
I don't think buying more long-term mortgage securities will benefit in as big a way as they claim. If you think about it, the people who are unemployed or not in the labor force are not going to be buying houses. This is not solving the problem of creating more jobs. The upper class and lower class are just growing farther apart.
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ECO_10am_R10419442
9/21/2012 11:10:17 am
Two statements in this article caught my attention. The unemployment rate dropping, and Moody’s statement saying, “Regions Bank is already hearing from businesses that they are hiring and investing less because they don't know what Congress will do.” Until Congress and the Fed make a decision, the waiting and uncertainty will hurt the economy along with the issues already at hand. Sitting around talking about what action to take is the same as taking no action at all, and no action equals no results. With the current low inflation and unemployment rate, injecting money into the economy will increase economic activity and confidence in businesses and households. It may cause inflation in a few years and currency may lose value, but that is when the Congress and Fed will need to take another action. The economy will always need adjustments to reach and maintain economic balances.
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R10352896
9/21/2012 01:29:28 pm
This feels like just another attempt to try something that may or may not work. A quick fix as stated in the article by the economists, will provide little to no help by early next year. The economy might take countless more years and tweaks before it's finally back on track but as of right now only quick fixes seem to be put in effect and this country needs a long term solution to fix the economy.
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Deon Harrell R10324058
9/21/2012 02:15:50 pm
I think alot of people forget that close to half of the debt that this country has, is owned by Americans. While injecting more money into the economy only weakens the US dollar, we must consider that there aren't many more alternatives to stirring up some type of economic activity. I'm not saying that this is a soultion!! The problem will contiune to spiral out of control as long as we are cutting taxes and increasing government spending. This will do nothing except put us in a worse situation than we are already in. But before we get critical of the "answer," to the problem we should first ask ourselevs what are our other options for creating genuwine economic growth?
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R10161312
9/21/2012 02:27:11 pm
Quantitative easing is not the long term solution this current economy needs. The government buying back bonds and pumping money into the economy will only boost the economy in the short term. Further tax cuts are required to promote business and therefore create jobs for a more lasting long term solution. The backbone to any strong economy is the creation of goods or services. The US economy has in recent years become of more service dominated orientation. Cutting taxes leads to growth among business of both goods and services production. Business growth leads to job creation and is started by cutting taxes, not quantitative easing.
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Chris Maserang
9/21/2012 02:55:23 pm
This Topic is difficult to even comprehend. An average of around 150 thousand jobs created a month is a lot. There are so many tactics that could work, should work, might work we could go on about it forever. there is a lot of factual information in this article and some speculation too. i like to simply look at numbers. i am an international business major, and many of my classes focus on the grand global scale of the economy, if you would like to talk about it non biased, with an open mind hit me up on facebook. If our economy is producing one hundred some odd thousand jobs a month i don't think there is really a problem that needs fixing. What we need is guidance and the right jobs, not 150k fast food jobs or other minimum wage jobs. There is a large percentage of people who have given up looking for jobs and I think the problem is their attitudes, not the government.
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M Barnett
9/26/2012 05:50:32 am
“This time, however, the Fed's medicine may be less potent” - Medicine? More like small amounts of arsenic.
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ECO_10AM Brennan Custard
9/26/2012 08:05:05 pm
It makes sense that the proposed stimulus from the Reserve is not predicted to have a great effect on the economy, even not considering the axiom of diminishing marginal rate of return. With the election coming up, it doesn't really matter who wins or loses, the fact of the matter is almost half of the country won't be behind the Executive office, which will make them feel uncertain about the future of the U.S. economy.
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Eco_11AM Kia Rahnama
10/2/2012 11:34:42 am
I think the fact that we are seeing some signs that the deleveragin is finally happening is the vest new for our economy. Households are finally balancing their sheets and may be starting to get ready to spend again. The pivotal thing here is convincing mortgage companies to start rewriting some of the mortgages so that less foreclosures happen. consumer spending is not gonna revive unless we assure households that their houses are not gonna go underwater.
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Eco_10am_R10508054
10/3/2012 12:07:31 am
Agreed. I was listening to NPR today, and they were discussing how some households are facing foreclosure, even as they attempt to refinance their homes in ord to get lower interest rates. I think that what the Fed is doing is great, but it may not affect the general population as much as is hoped. The situation seems bleak. But maybe some companies will get the picture and hire more people instead of sitting on their money.
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m barnett
10/5/2012 01:33:05 am
Decisions made by heads of companies (investors) are based primarily on risk and ROI. The trend of FED activity combined with govt. restrictions/requirements is increasing risk while lowering potential ROI. Exactly what "picture" are you referring to that creates favorable conditions for hiring (thereby risking) instead of sitting on their money (preventing loss of investment)?
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C. Smith R10380275
10/23/2012 07:08:08 pm
Even though there is a possible chance of the Federal Reserve not making as much of a change as people think, it is nice to hear that there is hope in the downturn of an economy. Hope, meaning the buying of the bonds to lower the interest rates is what helped myself and my family make it through this recession. Right as the economy dropped off, my father had just sold his company public and his next venture seemed like it would not happen because of a lack of financial backing. Luckily when interest rates were dropped as they are say they are doing now, it made it possible for us to get back on our feet and start a business that is now created jobs for over 50 people. I hope this plan allows growth through home buying, business expansion, and other ways that will help bring us out of this recession. It does not seem like a long term fix, but hopefully will be a kick start to something bigger behind it.
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