The summer has ended. As fall begins, the economy is a mess. Unemployment is at 9.1 percent. The U.S. economy failed to add jobs in August. Consumer confidence is at record lows. The housing market is in despair. Europe is imploding. And, our political leaders cannot seem to put their differences aside to create some certainty and progress. What is in store for the U.S. economy?
Here are the top 5 questions to ask.
#1 - Will Obama's Job Speech Do the Trick? No. It all seems too political. The "it" is not just the speech. The "it" is the speech, the lead up to the speech, the Republicans tactical decisions on how to answer the speech and the debate that will start in response to the speech. All the while, the U.S. economy continues to stagnate and our leaders fiddle.
#2 - Can Stimulus Spending Create Jobs? President Obama's job plan appears to be a new “New Deal.” The focus will be on re-building our infrastructure. The simple rationale is that we have plenty of unemployed construction and manufacturing workers who could use a job and we have plenty of roads and bridges that need to be fixed. Consequently, if the federal government hires private companies to rebuild the roads and bridges, the private companies will hire new employees. This will lower unemployment, put money in people's pockets and create new demand for products and services, which will lead to more hiring to deal with this new demand. It seems simple, but it’s not.