Free Newsletters - Space News - Defense Alert - Environment Report - Energy Monitor
. Earth Science News .




POLITICAL ECONOMY
Outside View: Jobs growth rebounds in April but more trouble ahead
by Peter Morici
College Park, Md. (UPI) May 3, 2013


disclaimer: image is for illustration purposes only

The U.S. Labor Department announced the U.S. economy created 165,000 jobs in April, and the unemployment rate slipped a notch to 7.5 percent. That's better than March but hardly enough -- getting unemployment down to 6 percent over the next three years would require 365,000 jobs a month and that isn't likely to happen.

Adding in discouraged adults and part-time workers who want full-time jobs, the unemployment rate becomes 13.9 percent. Meanwhile, hundreds of thousands of young college graduates face years working at Starbucks and may never get on the ladder to a meaningful career.

Slow growth is the big culprit: 45 months into the economic recovery, growth has averaged a subpar 2.1 percent. Growth closer to 3 percent is needed to pull down unemployment without chasing adults out of the workforce and sentencing well-educated young people to low-skilled employment but the president and Congress are taking the country in the wrong direction.

Defense cutbacks negotiated with Congress during U.S. President Barack Obama's first term have sliced some $62 billion from federal spending since last fall. Tax increases enacted in January and sequestration triggered in March will further reduce household purchasing power and government spending by another $200 billion in the second and third quarters of this year.

Together, those policies will kill about 4 million jobs over the next three years.

With southern Europe's depression spreading to Germany and other northern states, the prospects for U.S. exports and cut-priced competition from Europe in U.S. markets is heating up -- growth and jobs creation could stay depressed for a long time.

A bounty of inexpensive natural gas, rising wages in China and dysfunctional government policies in Europe and Japan makes the United States a more attractive location for manufacturing. However, new factories will require very few workers -- engineers have applied the wizardry of handheld devices to factory automation with amazing results.

It is hard to imagine the Federal Reserve could do more to support growth. Already, it is buying virtually all the new mortgage-backed securities and 70 percent of the new federal debt issued each month. This is keeping interest rates at record lows and boosting new home construction.

However, it penalizes the elderly who rely on certificates of deposit and fixed-income investments and reduces their spending on goods and services. Many cash-strapped elderly have returned to work, often taking jobs from younger workers.

Stronger growth would help and is possible. Forty-five months into the Reagan recovery, gross domestic product was advancing at a 5.2 percent annual pace -- nowadays, that pace would bring unemployment down pretty quickly.

More rapid growth requires importing less and exporting more -- dealing with the $450 billion trade deficit on oil, by drilling more offshore and in Alaska, and with China, by addressing its undervalued currency and protectionism.

Faster growth also requires right sizing business regulations to make investing in new jobs less expensive and time consuming. Regulatory enforcement is needed to protect the environment, consumers and financial stability but must be delivered cost effectively and quickly to add genuine value.

Overall, more jobs require trimming back on tax increases and spending cuts, and more pro-growth trade, energy and regulatory policies.

(Peter Morici is an economist and professor at the Smith School of Business, University of Maryland, and widely published columnist. Follow him on Twitter: @pmorici1)

(United Press International's "Outside View" commentaries are written by outside contributors who specialize in a variety of important issues. The views expressed do not necessarily reflect those of United Press International. In the interests of creating an open forum, original submissions are invited.)

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
ADB flags danger of Asia 'asset bubbles'
New Delhi (AFP) May 3, 2013
Emerging Asia needs to be on guard against "asset bubbles" as central banks globally loosen monetary policy, the Asia Development Bank's managing director warned on Friday. Last month, Japan's central bank announced it would pump $1.4 trillion into the economy over the next two years, administering unprecedented financial shock treatment to end two decades of stagnation through bold monetary ... read more


POLITICAL ECONOMY
Brother admits defeat in tragic Bangladesh search

New York's Sandy lesson: evacuate and get boats

Global networks must be redesigned

Hong Kong ferry disaster report finds 'litany of errors'

POLITICAL ECONOMY
NASA Partners With Utah State University's Space Dynamics Lab

Silicone liquid crystal stiffens with repeated compression

Researchers tackle collapsing bridges with new technology

Penn Research Helps to Show How Turbulence Can Occur Without Inertia

POLITICAL ECONOMY
Health defects found in fish exposed to Deepwater Horizon oil spill

Australia's Barrier Reef set for heritage downgrade: UNESCO

Scientists uncover relationship between lavas erupting on sea floor and deep-carbon cycle

Sea Turtles Benefiting From Protected Areas

POLITICAL ECONOMY
UN sounds alarm over record Arctic ice melt

Discovered: A mammal and bug food co-op in the High Arctic

EU spars with Canada, Norway at WTO over seal ban

EU court maintains seal fur ban

POLITICAL ECONOMY
Substances in honey increase detoxification gene expression

Traditional ranching practices enhance African savanna

New plant protein discoveries could ease global food and fuel demands

More food and greener farming with specialised transporters for plants

POLITICAL ECONOMY
Saudi floods death toll rises to 20: civil defence

Flash floods in Saudi kill 16: civil defence

Earthquake rattles buildings in northern India

Two dead as quake shakes northern India

POLITICAL ECONOMY
Tunisian army unable to find jihadists: ministry

Questions in S.Africa after Zuma's rich friends use military base

S.Africa army death toll in Central Africa rises to 14

Sudan state declared rebel 'target' as aviation warned

POLITICAL ECONOMY
Printable 'bionic' ear melds electronics and biology

CNIO researchers 'capture' the replication of the human genome for the first time

For ancient Maya, a hodgepodge of cultural exchanges

Genetic circuit allows both individual freedom, collective good




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement