| Despite talks about economic improvement, unemployment rate is still enhancing in the US. This situation might weaken the Democrats position. Although economic deterioration appears to slow down, the unemployment is expected to increase and exceed 10% during the year of 2009. Growing poverty and scanty economic improvement might provide even more ground for blaming Obama and Democrats for abuse of public money. If the situation does not change, the government which has been justifying its spending by the attempts to make new working places and improve the economic decline, will experience tough times, particularly during the midterm elections of November 2010. The economic policy of Barack obama supposes the investment of 787 bln dollars in renewable energy, health care, education and vocational training. The government claims that this step will help to stabilise the economy and create new working places. This optimistic vision, however, is not shared by financial gurus. By their estimates, the unemployment will exceed 10% in 2010, and its return to the pre-recession level (about 5%) can be expected not sooner than in few years. The anticipated development of the employment situation is going to sternly affect children, low-skilled workers, immigrants, African and Latin Americans. Lawrence Mishel, president of the Economic Policy Institute, is reported to allege that the rate of structural unemployment will produce unbelievable damage to many communities and verbalized his astonishment with the passive position of American citizens. According to statistics, since December 2007 the number of jobs in the U.S. Has decreased by about 5.7 million. Although recent months saw a slight growth of the employment situation and increase of expenditure, the situation continues, and the number of jobs still is getting reduced. Making things worse, American companies spare no efforts to re-employ workers and present modern technologies into production, thus making their employees redundant. Furthermore, the economic fall nearly destroyed the financial sector and the automotive industry. Even government intervention is unable to restore nany of the jobs in these sectors. "The rate of unemployment has not reached its critical point, it will be long-lasting," augurs Mishel. The political debate seems to suggest that the recession is about to finish, but we still need to discuss ways out of the real crisis, i.e. to recreate jobs." |
