Unemployment rates still remain at an extreme low, which is draining many states jobless benefits funds. This in return is forcing states to borrow billions of dollars from the federal government. Hibah Yousuf’s article states that 33 states have depleted their funds and borrowed over38.7 billion dollars from the federal government to provide for each states citizen. California, Michigan, and New York have borrowed the most of any state. The federal and state governments collect for unemployment benefits by taxing all employers on a small portion of their employee wages. I believe that the main problem the government is now facing is that because unemployment rates have grown so much as of recent, that the government hasn’t increased the taxes at the same pace causing many states to be behind.
I believe that the main problem is how low our unemployment is. We need to create more jobs for our citizens and start working in the 21st century. In creating jobs the government will start to see a rise in the economy, and eventually will have more and more benefits for those without jobs. As stated in class, infrastructure is what allows the economy to grow. “If you build it, they will come.” This statement might come from field of dreams; however it does have a great importance. The 2010 census is going to allow the government to allocate funds to build in areas of the country that is very populated. My only hope is that these funds will spark more jobs for our citizens.
http://money.cnn.com/2010/04/08/news/economy/state_funds_jobless_benefits/index.htm
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This was a really interesting article. It is no surprise that unemployment is still at an all time low. Our ecom=nomy is really bad right now and I agree that something must be done. Creating more jobs will hopefully get people who are unemployed now, the chance to work. I think it is smart to start building places in very populated areas. This would allow people to even carpool together and save money on gas. It is a small step but at this point we should be doing anything we can to save money. I am sure that our country will eventually come out of this current economic crisis, but now, we must do all that we can to try and make it better.
ReplyDeleteThe trouble with the economy is that there is no one way to fix it. Economists struggle regularly with possible solutions and continually come back to the fact that the only ones who can solve the problems are those in a position to do so.
ReplyDeleteDependent upon your economic beliefs, that's either the government or the people. Some people believe that the free market will prevail. And the reason the economy sucks, is because the people with the money are not spending it. That's how the Great Depression was caused. All of the people heard of the stock market crash and removed their money from their financial institutions. Now that we have protections against the trouble that was caused back then, we won't and haven't seen such drastic actions on the behalf of the consumer. Yet, we do see that there are people who are not spending.
Even if the government does continue to create jobs, they are not sustainable jobs, and there needs to be a good combination of all of the aforementioned economic policies.
Just a thought.
-JL