The Job Market in St. Louis and the debate in Washington
By Steve Adams
A lot of corporations are going to report higher than expected earnings next week. As long as the people in Washington raise the debt ceiling we should see a rise in the Wall Street reports that we watch on the news every night. However, corporations are not using these unexpected profits during this time of high unemployment to invest in expanding their business or hiring more employees. This is in large part because of lack of consumer confidence. It is uncertainty that is causing many corporations to hold off on hiring more employees or for creating capital spending to spur growth.
Many people have found that jobs are out there they just are low-paying jobs and we as a city are luckier than most other metropolitan areas. For the month of June, The number of unemployed persons (14.1 million) and the unemployment rate (9.2 percent) were essentially unchanged over the month. Since March, the number of unemployed persons has increased by 545,000, and the unemployment rate has risen by 0.4 percentage point. The labor force, at 153.4 million, changed little over the month.
Right now in Washington we are having the same thing that happened last December. Last December I had to wait for the new tax laws to come out. The reason why they were so late coming out was due to the fact that the Democrats wanted to repeal the Bush tax cuts for the corporations and for the wealthiest of Americans so what they did is they stalled the talks on the new tax laws and put the Democrats in a position where they would have to forget about this debate for the time being so that the middle class, college students, the working poor, and others who expected a tax refund could get their taxes on time. This is not the first time this has ever happened. When Newt Gingrich was House Speaker he also tried to delay the raising of the debt ceiling as a way of forcing the Democrats to give into what he wanted and the Democrats had to be the peacemakers and give in to the republican’s demands for the good of the country.
Have you ever seen the movie footloose? The movie starts out with them playing a game of chicken. If both parties do not blink or given in then the debt ceiling does not get raised and the whole world goes from a recession to a depression next week. However, the deal gets worked out and my teacher has already informed me that corporations are going to report greater than expected earnings for the quarter next week and the stock market will go up the rich get richer and we who are in the middle class will continue to see our paychecks shrink. There are lower paying jobs available for those looking for work. However, it is the lack of public confidence or people’s uncertainty about the future that causes both corporations to hold off on hiring new employees or investing in the growth of their business. It also causes those who have money to try to cut down on their spending and increase their savings.
What does America need? We need a little confidence a little faith in our economy. We need the government to get rid of all these variable rate mortgages that have caused so many Americans to lose their homes. In other words, what the American people need is a program initiated by the government and the banks to eliminate the process of offering mortgages with a variable rate. The government needs money to eliminate the deficit and a good way to make money and help the economy would be to offer Americans the good old-fashioned fixed rate mortgage that all Americans use to have to purchase their homes. You know in college I learned that almost every law that man every created was caused after people learned how things like stealing or killing had such a traumatic effect on society. I have been waiting for years for the government to outlaw variable rate mortgages and seem to be the only one who has ever written about the cause of this recession and this financial mess.