Tuesday, July 24, 2012

U.S. Economy Lacks Optimism.

One thing the U.S. economy lacks right now is optimism. Americans lack the disposition to look on the more favorable side of circumstances. More and more Americans are saving up for school, college, books, and more worldly contrivances. Too afraid to invest here in America. What Americans are looking for is not being produced here in the U.S.A..

Elected officials are so exhilarated to take their business elsewhere that you wonder if they ever notice that there is a problem with the economy.  New Jobs numbers show that the U.S. Economy has not grown in any significant manner. These Numbers are dismal at best.  Non-farm payroll is still below average at (+80,000).  The unemployment rate is unchanged at a staggering 8.2 %. This is according to the U.S. Bureau Of Labor Statistics as of June 2012.

The number of unemployed Americans is a whopping 12.7 million . This number is unchanged in the last few months. The unemployment rate for African Americans has gone up since last month its now 14.4 %, rates for adult men where 7.8 % and for adult women 7.4 %. Teenagers came in at 23.7 % unemployment rate. Whites received 7.4 % while Hispanics got 11.0 % unemployment rate. These statistics showed little or no change. The unemployment rate for Asians was 6.3 % (not adjusted seasonally) in June.

According to the Bureau Of Labor Statistics the number of long-term unemployed (Americans without a job for 27 weeks or longer) was unchanged at 5.4 million Americans in June 2012.  The number of part time workers trying to find work was 8.2 million and remains unchanged. In June 2.5 million Americans were marginally attached to the labor force, down from 2.7 million a year earlier. These numbers depict the troubled state of the economy.

Investors lack the confidence and optimism that is needed to get the job numbers higher. However since I'm and optimistic guy. Lets take a look at this from another angle. Lets say investors do have confidence in the U.S. economy. What is clearly lacking is certainty which then makes room for ambiguity to take over! This doubtful and uncertain nature is the root of America's economic problems.

Could it be high taxes that are to blame for the struggling U.S. economy. According to Fox News.com high taxes are to blame for the low job numbers and the sagging U.S. economy. Sometimes I tend to side with this theory, however we all know what happens when we cut taxes and spending, and ship jobs over seas. Other programs start to fall apart! Job security falters, unemployment rises, war becomes the agenda! All of these factors need to be considered.

Now I'm not a math genius here.. but if the unemployment rate is 8.2 % and the number of Americans that are trying to get part time work is 8.2 million. Is there a direct connection here? Could this mean that more and more Americans can only acquire part time work. Where is this capitalist utopia that former President Bush and current "Presumptive" President Obama promised us?

I am still optimistic about the U.S. economy however. All it takes is the right balance of optimism and certainty to pull us all through.

Thank you for reading my blog

Samuel J De Santos