Radio Smart Talk for Friday, October 7:
The Great Recession officially ended two years ago. However, in many ways, an economic recovery has sputtered and now the Great Recession could morph into a double-dip recession.
In most economic recoveries, jobs would have begun to return by now. Instead, the nation's unemployment rate hovers over 9% and has shown no real sign of improvement. The nation is cautious at this point.
Consumers aren't spending because they're afraid of losing their jobs, they are saving more, not using credit as often, and the value of their homes can't be used to borrow against as much as just a few short years ago. In a consumer-driven economy, cautious spending translates into little demand for goods and services and as a result, employers aren't hiring.
President Obama outlined his American Jobs Act last month designed to create jobs and get the economy moving in the right direction. It includes tax cuts for businesses and individuals, investment in infrastructure to get construction workers back on the job, hiring teachers, modernizing schools and community colleges, and reforming unemployment compensation insurance. The $447 billion package would be paid for by additional budget deficit reductions.
On Friday's Radio Smart Talk, we'll focus on the president's jobs plan and whether it will get America back to work.
What are your thoughts on the president's jobs proposal? Leave a comment below.
Listen to the program:
comments
The fact of the matter is that we live in a capitalist system and for that to work, there must be consumerism. Something we all tend to overlook is that we are the economy - not "business", not "government", you and I and all of us. If we want the economy to improve, then those who can need to make the effort to improve it. Savings rates are higher than they have been in years. Here's my recommendation: little splurges. That doesn't mean buying houses or even buying new cars. It means doing anything from going ahead and buying that new washer, dryer, vacuum cleaner, or even a blender. It means if you go out for dinner once a month, go out twice a month. Let's not try to take on the economy as a whole, let's just take it on one little splurge at a time.
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