Friday, July 6, 2012
Employers Add 80,000 Jobs As Economy Struggles: American Economy Still Struggling to Recover
There's plenty of uncertainty in not just the American Economy but Global Economy right now. The Supreme Court ruling on the Affordable Care Act last week, hopefully makes that bill easier to understand and comply with. The regulations and so fourth but with the financial and economic situation in Europe right now, especially in Spain, Italy and Greece. With States struggling right now so much with debt and the economy, that effects the United States as well, with the European Economy being as big as it is. The 2nd largest economy in the World about the size of the United States, with their economies being so linked together with the Euro and with none of the big States there. Except for Germany growing at all economically and with them being such a large trading partner with America, their economy effects ours and vice versa. America is out of recession but Britain is back in recession, so investors aren't excited about investing in any of these places right now. Consumers don't want to spend money right now, because of course they don't have it to spend, which is why we are seeing weak Economic and Job Growth both there and here right now.
Which says that a big reason why both America and Europe are struggling to grow right now, a lot of it has to do with uncertainty. With Europe it has a lot to do with debt, with America it has to do lot with taxes, what our taxes are going to look like in 2013 and how the budget cuts are going to effect the economy. Especially in the Defense Industry, whose going to have contracts and who isn't and how much work will that mean for these companies and how many jobs that. Means for these companies right now, how many employees these companies are going to need to do all the work that may or may not be coming to them. And because with all of this uncertainty, employers aren't sure how to prepare and with the financial situation being what it is for so many people. They aren't looking to spend money right now and until these questions get answered, investors aren't going to be comfortable investing new money.
So what the economy needs right now is certainty and predictability, Europe to solve its debt issues. And for America to answer its questions as it relates to the taxes, thats what the President and Congress should be working on right now. The new Highway bill will help but if Congress were to not wait until January to deal with the expiring Tax Cuts and automatic Budget Cuts, solve those issues before they adjourn for this year. Probably not going to happen but this would help free up the economy to grow.