On the Right Track?
When discussing the American economy during his swing through Iowa, President Obama said: “We are on the right path. We’re on the right track.”
Not impressed with the president’s assurances, Goldman Sachs is advising its clients that the economy is likely to be “fairly bad” or “very bad” over the next six to nine months. Looking at the data, one can only wonder whether that assessment is not too optimistic.
Consider this.
According to Gallup unemployment, stood at 10.1 percent in September. Among Americans aged 18 to 29 the figure was nearly 14 percent.
Noted Bloomberg: “the jobless rate would have equalled or exceeded 9.5 percent for 14 consecutive months, surpassing the 13-month period from mid 1982 to mid 1983 as the longest span of elevated joblessness since monthly records began in 1948.”
Underemployment – which includes those who would like to work full-time, but can only find part-time work – is at a staggering 18.8 percent.
Last year Congress extended $160 billion in unemployment benefits. This was up 30 percent from the previous year.
Nearly 42 million people are on food stamps today. Each of the previous 20 months set a new record in terms of participation. This trend will continue. According to White House estimates, nearly one seventh of the American population will be receiving food stamps in this fiscal year. In New York City the situation is even worse: one in five there rely on food stamps.
The Census Bureau reported that America’s poverty rate was at a 15-year high of 14.3 percent in 2009. This means that one in seven Americans now lives below the poverty line. The figure represents the highest level since the 1960s.
Last week the dollar tumbled to a 15-year low against the Japanese yen. This despite the fact that the yen itself is becoming weaker, as the Bank of Japan tries to hold down the value of the currency in order to encourage exports.
In the last six weeks the dollar has declined 7 percent against a basket of major world currencies.
Spending by Americans dropped 2.8 percent last year. This is the first decline on record. Even as American consumers had to limit their consumption, spending on healthcare shot up by 9.6 percent.
Read the rest of the article at American Thinker
