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Categories - Copywriting - Shopping - Free Online Business Help - Telecommunications Services Articles: Finance - Smoke and Mirrors The government announced that GDP had increased by 3.5% in October and celebrated that the recession was over. However, production normally increases in the 3rd quarter as government agencies rush to spend what is left of their budgets and manufacturers prepare to stock store shelves for back to school and Christmas sales. This process is more noticeable in a down economy. At the same time that it was celebrating, the government also announced that another 200,000 jobs were lost in October and unemployment hit 10.2%.
While big banks are posting big profits, they are sitting on idle funds, including taxpayer funds from TARP, and contributing very little to economic growth. The increasing number of smaller banks, which support the small businesses that employ the vast majority of the population, on the radar screen that are in trouble is increasing past 400. Nine more of them were closed at the end of October and CIT Group has filed Chapter 11.
Any increases in production resulting from the cash for clunkers program dissipated as soon as the money was spent. Worse yet, according to Edmunds, taxpayers paid $24,000 per car sold, with most of it being sent out of the country, and, as the loan is serviced, what is left of the money will be withdrawn plus interest. Trying to claim this as part of a growth process requires a very optimistic imagination. http://bit.ly/2OkQA1
Since the stimulus bill was passed and the government has alleged to have saved or created 650,000 jobs, the government also imported 1,125,000 foreign workers putting any results from government intervention into negative numbers. http://bit.ly/19znme Considering that the jobs created or saved will also dissipate when the stimulus money runs out, the government has only made things much worse.
Additionally, the 1,125,000 million foreign workers will be employed at lower wages driving the price of labor down and remove more revenue from 70% of the economy, which is comprised of the population, for years to come. The decreasing value of the dollar, as a result of government spending, will add to the woes as the population is forced to pay much more for everything that it buys if cap and trade and government-run health care become law. If only there were major investments in viable growth industries to sustain a glimmer of hope.
Perhaps we can turn things around by ignoring what is actually going on, imagining good things, and letting the law of attraction kick in.
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