Peter Morici is a professor at the Smith School of Business, University of Maryland, and former Chief Economist at the U.S. International Trade Commission.
Friday, economists expect the Labor Department will report the economy added 168,000 jobs in November, enough to hold unemployment steady at 9.6 percent and far less than should be expected 17 months into an economic recovery. To win re-election President Obama must improve on those numbers.
The EU bailout for Irish banks failed to quell financial markets. Borrowing costs for Portugal, Spain and others continue to rise, because structural problems created by the euro and single European market remain unaddressed and more crises are inevitable.
Growth is too slow and unemployment is kept unacceptably high by surging imports, especially from China and Germany, which enjoy undervalued currencies.
Ben Bernanke is right. Germany shouldn’t blame easy money in the United States for the world’s woes. Currency mercantilism in China and elsewhere is causing a mess—especially in the United States.
The Irish banking crisis illustrates the euro makes little sense, because the EU lacks taxing, spending and regulatory authority critical to managing a modern economy.
Despair grips the nation, as nearly 15 million are counted as jobless and many more languish in part-time employment. Free trade with China, flawed energy policies and pandering to Wall Street are destroying American prosperity.
Core private wage earners must be added to pay taxes for new positions mandated by new federally subsidized health benefits, financial sector regulations, and alternative energy technologies, or the federal deficit will fly into orbit; nevertheless, new tax-paying jobs are simply not materializing in sufficient numbers.