|
|
|
 |
|
|
|
|
Posted on 10/12/2003 4:29:39 PM PDT by Marcus Alonzo Hanna
THE economy is growing again, thanks in part to President Bush's tax cuts, but high productivity has been keeping unemployment high -- until lately. Just last month and this, there have been signs that things are getting better. Small signs, but important signs. In September, the number of net jobs in the economy went up for the first time since early in the year. The number wasn't huge, just 57,000, but the positive direction gave economists hope. Then last week, there were fewer people putting in claims for unemployment insurance than anytime since early in the year. The high productivity is a two-edged sword. Over time, the fact that a worker can produce what it used to take two or three workers to produce will pay off, leading to profits and wealth that can be used by innovative entrepreneurs in all sorts of job-creating ventures. In the short term, companies will have reduced the need to hire extra workers, at least until the rate of economic growth is sufficiently faster than the rate of productivity growth. Such a thing could be happening. Growth in the second quarter was a healthy 3.3 percent. Some think growth in the third quarter could turn out to be as high as 5 percent. The tax cuts have stimulated growth because of the money they have put in the pockets of consumers, who account for two-thirds of the economy and have been spending large amounts of what they have received through rebates and reduced tax withholding in paychecks. Ultimately, though, it will take higher employment to keep the economy rolling. And -- let's keep our fingers crossed -- that seems to be happening.
|
|
|
|
|
|
|
|
|
Tom Daschle, " I am saddened. Deeply saddened."
Tom Daschle, " I am saddened. Deeply saddened."
Not for me. My company just got swallowed up a few months ago, and I'm out of work. Went from Director of materials management, quality control, procurement, in the steel sector. Then to business analyst, and distribution consultant with JD Edwards for 15 years, to unemployed after the PeopleSoft JD Edwards merger. Not fun. Income went from 150k to zero.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.