Economics At Its Best Essay

1022 words - 4 pages

Economics at its best In this time age everyone is looking for a job, and believe it or not even myself. Looking towards the future on unemployment I believe in eighteen months the employment rate will rise due to the economy is getting better slowly but surely. Robert J. Samuelson "Since February 2001, private employment has fallen by 3.3 million, says the Labor Department. Jared Bernstein of the Economic Policy Institute, a left-leaning think tank, says that this is the longest stretch without job creation since the 1930s. When, if ever, will the fabulous machine start to purr? The answer could determine the fate of (a) the U.S. economy, (b) the world economy and (c) the 2004 presidential election."One can find enough current events to become a real life economist. Economist find it to be amazing what Alan Greenspan federal chairman of the board has to say and hang on every word. Why is this? Could it be that he controls the interest rates for starters. Interest rates are at all time lows and its all due to "The Economist" Alan Greenspan. Many economist believe that the economy will regain its confidence thus creating more jobs but there is a lot of skepticism left so there will only be ultimately one way to find out and that's to see what the future holds for the U.S. economy. Robert J. Samuelson also claims "If job growth doesn't resume soon, the recovery--which seems to be strengthening--could again falter. Almost 40 percent of this year's gain in consumers' disposable income comes from lower taxes, says Bernstein. Once the stimulus fades, the economy will need higher employment to generate higher consumer spending. Aside from reducing the number of workers, continuing job losses would probably depress the wages and salaries of the still employed. The law of supply and demand operates in the labor market, as elsewhere." (Samuelson, 2003, online)I believe by the year 2005 through my research and the research done through these articles the unemployment rate will increase and build more jobs. Robert Samuelson claims "The stronger case for optimism lies elsewhere. Corporate retrenchments may be slowing, and other sources of job loss--weak overall demand, an expanding trade deficit--may be ebbing. "As companies see the recovery take hold, they'll start to hire," says Nariman Behravesh, chief economist of Global Insight, a forecasting service. Its model predicts monthly job gains later this year (50,000 to 60,000) and greater gains next year (100,000 to 200,000). These would absorb the natural increase in the labor force but would not be large enough to reduce the unemployment rate from its present, roughly 6 percent level. Of course, the models have erred before--they didn't predict the recent...

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