unemployment rate has hovered around 10% for months - with no real signs of improvement. As American workers grow increasingly impatient, the U.S. government is running out of options to help the job market.
But with midterm elections approaching, U.S. President Barack Obama is trying to show voters there's hope in resolving the stubbornly high unemployment rate. Last week he unveiled a six-year infrastructure plan that would invest billions in transportation projects and create a "substantial" number of jobs.
The government would supply $50 billion off the bat to rebuild 150,000 miles of roads, 4,000 miles of rail and 150 miles of runway, plus modernize the air traffic control system. The plan also sets up a government-run infrastructure bank to finance the projects, combining tax dollars with private investment for funding.
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Question of the Week: U.S. Government Spending the Wrong Way to Fix Job Market
We Want to Hear From You: How Do You Feel About the U.S. Government's Proposals to Boost Employment?
The U.S. unemployment rate has hovered around 10% for months - with no real signs of improvement. As American workers grow increasingly impatient, the U.S. government is running out of options to help the job market.
But with midterm elections approaching, U.S. President Barack Obama is trying to show voters there's hope in resolving the stubbornly high unemployment rate. On Monday, he unveiled a six-year infrastructure plan that would invest billions in transportation projects and create a "substantial" number of jobs.
The government would supply $50 billion off the bat to rebuild 150,000 miles of roads, 4,000 miles of rail and 150 miles of runway, plus modernize the air traffic control system. The plan also sets up a government-run infrastructure bank to finance the projects, combining tax dollars with private investment for funding.
But with midterm elections approaching, U.S. President Barack Obama is trying to show voters there's hope in resolving the stubbornly high unemployment rate. On Monday, he unveiled a six-year infrastructure plan that would invest billions in transportation projects and create a "substantial" number of jobs.
The government would supply $50 billion off the bat to rebuild 150,000 miles of roads, 4,000 miles of rail and 150 miles of runway, plus modernize the air traffic control system. The plan also sets up a government-run infrastructure bank to finance the projects, combining tax dollars with private investment for funding.
Dodge a Possible Debt Debacle With These Two Stimulus-Plan Safety Plays
U.S. President Barack Obama's $862 billion stimulus plan, passed in great haste after his inauguration, has now revealed its true costs and benefits. It didn't revive the U.S. economy - that bottomed about May 2009, before a dollar of it had been spent. Further, combined with the mad wave of similar "stimulus" outlays across the planet, it has destabilized global bond markets - which may end up being very expensive indeed.
For details of the two stimulus-plan safety plays, read on...
For details of the two stimulus-plan safety plays, read on...
For details of the two stimulus-plan safety plays, read on...
Greek Bailout Fails to Defuse the Ticking Global Debt Bomb
The ticking global debt bomb is in the in the spotlight again.
Or, at least, it should be.
Greece's woes draw attention to the looming financing problems of other countries with a lot of debt. The strain of funding these requirements - the global debt bomb - is the greatest threat to global growth prospects. This is why central banks have flooded the financial system with money. It's the biggest and most critical financial battle of our time.
The Bank for International Settlements - essentially the central bank of the central bankers - said as much in a recent research paper, noting that governments around the world are overspending in an effort to make up for the lack of activity from cash-strapped consumers and companies. To maintain those high spending levels at a time when tax-receipts are down, however, governments have no choice but to borrow - a strategy that they cannot follow forever, BIS researchers said.
"Our projections of public debt ratios lead us to conclude that the path pursued by fiscal authorities in a number of industrial countries is unsustainable," the researchers said. "Drastic measures are necessary to check the rapid growth of current and future liabilities of governments and reduce their adverse consequences for long-term growth and monetary stability."
Or, at least, it should be.
Greece's woes draw attention to the looming financing problems of other countries with a lot of debt. The strain of funding these requirements - the global debt bomb - is the greatest threat to global growth prospects. This is why central banks have flooded the financial system with money. It's the biggest and most critical financial battle of our time.
The Bank for International Settlements - essentially the central bank of the central bankers - said as much in a recent research paper, noting that governments around the world are overspending in an effort to make up for the lack of activity from cash-strapped consumers and companies. To maintain those high spending levels at a time when tax-receipts are down, however, governments have no choice but to borrow - a strategy that they cannot follow forever, BIS researchers said.
"Our projections of public debt ratios lead us to conclude that the path pursued by fiscal authorities in a number of industrial countries is unsustainable," the researchers said. "Drastic measures are necessary to check the rapid growth of current and future liabilities of governments and reduce their adverse consequences for long-term growth and monetary stability."
The U.S. Employment Outlook: Bad For Paychecks, Good For U.S. Stocks
You undoubtedly know by now that the U.S. economy added 164,000 jobs in March. While that was the best number in ages, anyone who looked closely at the payrolls report issued by the U.S. Labor Department would discover that it was actually riddled with problems.
Indeed, the report sends a very clear message: While the March report is consistent with a gradually improving labor market, the numbers hardly convey a sense of an economy that's zooming its way back to health.
Still, as we'll see, this employment scenario could be a good one for U.S. stocks.
Indeed, the report sends a very clear message: While the March report is consistent with a gradually improving labor market, the numbers hardly convey a sense of an economy that's zooming its way back to health.
Still, as we'll see, this employment scenario could be a good one for U.S. stocks.
Inflating Government Bubble Can Only Lead to a Major Financial Hangover
During the 1990s, the inflationary policy of the U.S. Federal Reserve fueled a tech-stock bubble. When that bubble burst, the Fed inflated a larger one in real estate. Now that the real estate bubble has burst, the Fed is inflating the biggest bubble of them all – a bubble in government. While the earlier booms provided at […]
It's Time to Tackle Government Pay
It's fairly well known that the U.S. public sector is paid more than the private sector. What's less well known is that the gap between federal-employee pay and benefits and private-sector pay and benefits is increasing - by about 18% over the last decade.
Given the current level of U.S. unemployment and the size of the budget deficit, it would appear that some economies could be made. In short, it's time to tackle government pay.
After all, if Greece can economize, so can the United States...
Given the current level of U.S. unemployment and the size of the budget deficit, it would appear that some economies could be made. In short, it's time to tackle government pay.
After all, if Greece can economize, so can the United States...
To see why government pay cuts are justified, read on...
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