It seems to summarize the situation — the labor market is gradually recovering (i.e. there are more jobs available), but the housing market and the high foreclosure rate is a significant drag to the economy.
How does it look to you? Are people having an easier time finding work?
The other question is what the government should do to improve the economy, if anything. Initially, the Obama administration tried attempting to stimulate the economy through increased government spending. In contrast, Republicans generally believe tax cuts would better stimulate the economy by putting more money in people’s pockets. But given the current fiscal imbalance and the fact that two parties can’t agree on either path, neither of these options is likely to go anywhere in the near future.
Meanwhile, cutting the budget deficit, the current focus of so much political discussion, seems unlikely to drastically improve our fortunes. It may lead to lower interest rates, but businesses aren’t investing and banks aren’t lending, even though interest rates are already quite low.
What do you think? What other policies should the government use to get us back the economy to full employment? Do we just need to wait it out? I, myself think that things will not improve for a long time to come.
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