Unemployment #’s are unexpectedly encouraging.
Posted on 05. Mar, 2010 by scott in economic daydreaming
The government’s unemployment numbers today were surprising to me. I was expecting a higher number and unemployment to go to 9.9%. But yippee, we take the positive with glad hearts and minds.
Stocks have rallied, the $ is stronger, and government bond interest rates have gone up. Signs that confidence and the economy continues on a growth path.
Sadly, but naturally, commodity prices also went up–from oil ( over $81 –yikes!) and gas (natural gas remains near an all-time low) to corn and copper.
Unemployment (click on the above chart for a better view) remains the #1 priority on President Obama’s desk (despite his continuing push for the democrats to force health care as defined by the dems) down American’s throats. But, the question is will he act?
Obama and his minions just have to start taking tax uncertainty and health care cost uncertainty off the table. They should waste no further time and simply announce that ALL the Bush tax cuts will remain in place (maybe expanded with business friendly cuts) and that health care (if not passed by the dems in the next two weeks) will be taken off the table for the rest of Obama’s term.
Then, I think we will see businesses’ opening their healthy coffers of cash (the big ones) or their entrepreneurial resources )the smaller ones) to ‘full speed ahead.’
thanks to speaker pelosi for the chart
As to health care, congress should forget the massive restructuring they contemplate and start working on the important pieces one at a time. Like a bill to open interstate competition. Then a bill directed at tort reform to reduce costs. Finally (this year anyway) a bill to regulate the insurance companies with the interests of the entire country in mind (no denials of benefits, insurance available to even the sick, and rate increases limited to inflation adjusted health care costs.
There is a lot to do and a lot to look forward to. I am hopeful for the first time in months (see prior blog on the Obama ‘Home star’ program).
I would just love to see the March unemployment #’s drop but right here and now I will predict a slight increase to 9.8% in March (primarily because Obama and the dems will not likely do anything to mitigate the above mentioned uncertainty).
The next couple of weeks will really determine the rest of the year. Act now Mr. President. Help him Harry Reid and Nancy Pelosi. Pleeeeease!
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