Finance – Townhall –
10/13/2012
Click the link to view the chart—the
blue line (unemployment) matches or exceeds the red line. It has a long way to
go
It's only a coincidence that this
surge in unemployment would appear set to take place just as the U.S. government
approaches its self-created "fiscal cliff", where the ongoing failure of the Obama administration to negotiate
government spending reductions in good faith with the U.S. Congress threatens to push the U.S. directly into recession in early
2013!
five of the last seven U.S.
Intuitively, the mechanism at work
is the following. An increase in, for example, the price of oil leads to an
erosion of profit margins. Firms lose money, and begin to go out of business. To
restore a zero-profit equilibrium, some variable in the economy has to alter. If
labor and energy are the key inputs and interest rates are largely fixed
internationally, it is labor's price that must decline.
This effect is what Obama
administration officials are after in part when they state their political
objective that the price of fuel must "necessarily skyrocket", as it gives the administration a
target to scapegoat (capital owners) while simultaneously increasing their
client base of unemployed individuals who will become dependent upon
government-provided welfare for their income.
Or maybe they're just a bunch of
screwups.
Northwoods Patriots - Standing up for Faith, Family, Country - northwoodspatriotscomm@gmail.com
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