• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

Unemployed Ranks Swell by 598,000 in January

From the Department of Labor today comes more news that this recession will be around for a while: In January alone, 598,000 more Americans lost their jobs, raising the country’s unemployment rate from 7.2 percent to 7.6 percent — the highest tally in 16 years. Since December 2007, 3.6 million Americans have lost their jobs.

So it’s certainly timely that Congress is moving closer to passing the stimulus bill that’s being promoted as the lifeline that will prevent the recession from lasting longer than it otherwise might. And yet, if some figures crunched by the Congressional Budget Office recently are accurate, the Democrats might want to rethink their strategy.

Testifying before Congress last month, CBO Director Douglas Elmendorf told lawmakers that the House-passed stimulus proposal would boost the number of jobs by between 800,000 and 2.1 million at the end of 2009, between 1.2 million to 3.6 million at the end of 2010, and between 700,000 and 2.1 million at the end of 2011. (These numbers are relative to end-of-year projections, meaning you can’t just subtract them from the jobless figures of today.)

Those are enormous numbers, even on the low end. But with the economy shedding 600,000 per month with no end in sight, you’d like to think that $825 billion could buy the country more than 800,000 jobs by the end of this year.

This dilemma arises not because experts don’t know how to create jobs via federal spending. Indeed, there’s almost universal agreement that public works projects produce the greatest return on the government’s investment. As University of Maryland economist Peter Morici wrote to reporters earlier this week:

Economists know that real infrastructure improvements–roads, schools, internet upgrades, clean water projects, and a smarter energy grid–return more than a dollar in additional GDP for every federal dollar spent, if substantial amounts of the needed materials and components are not imported.

Why, then, did the House bill include just $90 billion for these bang-for-the-buck infrastructure projects? Even House Infrastructure and Transportation Committee Chairman James Oberstar (D-Minn.), who recommended tens of billions more in ready-to-go public works projects, can’t get a good answer for why that spending was cut out, yet $275 billion in tax cuts remains. Not to mention a number of provisions that seem to satisfy campaign promises, but would do little to stimulate job creation. As The Washington Post wrote in an editorial yesterday:

This is precisely the problem. As credible experts, including some Democrats, have pointed out, much of this “long-term” spending either won’t stimulate the economy now, is of questionable merit, or both. Even potentially meritorious items, such as $2.1 billion for Head Start, or billions more to computerize medical records, do not belong in legislation whose reason for being is to give U.S. economic growth a “jolt,” as Mr. Obama himself has put it. All other policy priorities should pass through the normal budget process, which involves hearings, debate and — crucially — competition with other programs.

Some in the Senate — Democrats and Republicans — are trying to refocus the spending package on its more stimulating elements. We could know as soon as today how well they fare.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.