| Despite talks about improvement of the economic situation, unemployment figures are still enhancing in the US. This situation can weaken the Democrats position.
Although economic deterioration is believed to slow, the unemployment is expected to increase and exceed 10% within a year. Growing poverty and poor economic growth could provide even more ground for accusing the president and parliamentarian Democrats of abuse of public money. If the tendency persists, the government which has been justifying its spending by the attempts to create new working positions and improve the economics, will face tough times, particularly during the midterm elections of November 2010.
The economic policy of Barack obama entails the investment of 787 bln dollars in renewable energy, healthcare, education and vocational training. The government alleges that this step will help to stabilise the saving and create new working positions. This optimistic vision, however, is not shared by financial specialists. By their forecasts, the unemployment is going to exceed 10% in 2010, and its return to the pre-crisis level (about 5%) can be anticipated not sooner than in few years. The anticipated development of the employment situation is going to badly affect children, unskilled workers, immigrants, African and Latin Americans.
Lawrence Mishel, president of the Economic Policy Institute, is said to claim that the rate of structural unemployment will cause enormous damage to many communities and verbalized his astonishment with the careless standing of American citizens. According to statistics, since December 2007 the number of jobs in the U.S. Has reduced by about 5.7 mln. Although recent months showed a slight growth of the employment situation and increase of expenditure, the situation continues, and the quantity of jobs still diminishes.
Making things worse, American companies spare no efforts to re-engage workers and present technological advances into production, thus making their employees redundant. Furthermore, the economic deterioration almost ruined the economic sector and the auto industry. Even government intervention fails to restore nany of the jobs in these sectors.
"The rate of unemployment has not reached its critical point, it will be long-lasting," affirms Mishel. The political debate seems to indicate that the recession is over, but we still need to discuss ways out of the actual crisis, i.e. to recreate jobs." |
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