Bailouts save jobs but with a high risk...

"Because of the steps we took, there are about 2 million Americans working right now, who would otherwise be unemployed." - President Obama

The report by Blinder and Zandi takes a comprehensive look at a series of policy initiatives adopted in 2008 and early 2009 in response to the cratering economy. These include the American Recovery and Reinvestment Act, the Troubled Asset Relief Program (TARP), the rescue of the housing and auto industries, and the establishment of new credit facilities to improve liquidity in financial markets. The report shows that, absent these actions, the country would have 8.5 million fewer jobs and economic output would be $1.5 trillion lower.

Source

What the Obama administration fails to mention is that most of those jobs were saved by federal bailouts. These bailouts are meant to be temporary fixes for failing banks or companies until the economy makes positive gains. These bailouts did help failing companies to stay open without having to close their doors or downsizing causing more layoffs.

What they also fail to mention is that bailouts are not gov. grants they are loans that need to be paid back to the federal gov.. The economy has not recovered as expected so the gov. continues to print more money trying to stimulate the economy. All they are doing is placing a band-aid on a deep wound. If the economy does not recover expect more bailouts that will continue to push the dollar towards hyperinflation. If bailouts do not continue expect the unemployment rate to skyrocket due to companies and banks going bankrupt.

Two years ago, state and local governments began shedding workers as they struggled to balance their budgets. What began as a trickle of job losses is becoming a flood. As the chart shows, a total of more than 300,000 state and local government jobs have been lost since August 2008, with 48,000 payroll jobs cut last month alone. The pace of job loss is accelerating and threatens to overwhelm the meager job gains in the private sector.

Legislation passed the Senate last week to slow this tide of unemployment—$16.1 billion of funding for state Medicaid programs and $10 billion to save education jobs. We estimate that the Medicaid funds will save 158,000 jobs, including police officers, firefighters, and health care workers. But more than half the jobs saved will be in the private sector, including workers who contract for or supply services to state and local governments.

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Notice how they slowed the unemployment by providing billions in bailouts yet jobs losses continue to rise. Many people have this false idea that we can print money without any consequences since it is no longer backed by gold or silver. We can easily forget that the federal reserve is not part of the U.S. gov.. The Fed. could easily stop backing our bailouts causing an economic nightmare.

The total number of job openings in June was 2.9 million, while Current Population Survey data for that month shows that the total number of unemployed workers was 14.6 million. This means that the ratio of unemployed workers to job openings was 5.0-to-1, a slight improvement from the revised May ratio of 5.1-to-1. Importantly, this ratio does not measure the number of applicants for each job. There may be throngs of applicants for every job posting, since job seekers apply for multiple jobs. The 5-to-1 ratio means that there is literally only one job opening for every five unemployed workers (that is, for every four out of five unemployed workers there simply are no jobs).

With so many unemployed workers per available job, people who find themselves out of work can be expected to remain unemployed for extremely long periods. In June, nearly half (45.5%) of this country’s unemployed workers had been jobless for over six months, nearly 20 percentage points above the high of all post-war recessions, which was 26.0%, set in the summer of 1983.

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A sad look at America's debt bubble:



[edit on 14-8-2010 by bputman]

U got it right nobody can deny ya facts he fudge up and bad this time we should have used that money to get our compaines back wtf!!!!

GOod thing we stopped communism from taking over this country.

August 11, 2010
Congress passes bill to help prevent layoffs

Hundreds of thousands of teachers and first responders got a sense of comfort in keeping their jobs after Congress passed a $26 billion state aid bill on Tuesday.

Democrats did a service to this country by approving a bill that would not only provide $16 billion to extend state Medicaid funding but also provide $10 billion to help states prevent approximately 300,000 teachers, nurses, firefighters and police officers from being laid off.

Source

The future of our economy keeps looking darker by the day.

Ron Paul everybody:







[edit on 14-8-2010 by bputman]

reply to post by bputman


I actually laughed out loud when I read this sad excuse for a report.. It's the most biased and simply uneducated piece of garbage I've ever seen.

The chart was the kicker. Hilllllarious.

If there was a positive ROI for hiring, the private sector would have done it, and those jobs would be long term jobs. Government created jobs are a negative ROI and are only short term jobs. Government jobs take money away from the private sector and potentially productive positions, and are a burden on the economy. Stimulus plans are funded by taxes, are ineffective and inefficient, and further burden the economy.

Government change such as the new healthcare plan, tax hikes, unresolved taxes keep private companies on edge, and they can't spend money on labor without knowing the consequences.

Knowing the stimulus plans cost far more than their impact, government jobs cost far more than their benefit, government change causes a flight to safety in free markets, we're in for a long term negative impact to the economy and the country. Both Congress and the Executive branch have made exactly the wrong decisions to recover the economic and social situation we face from having extended easy credit to unqualified borrowers.

Originally posted by Rockpuck
reply to post by bputman

 

I actually laughed out loud when I read this sad excuse for a report.. It's the most biased and simply uneducated piece of garbage I've ever seen.

The chart was the kicker. Hilllllarious.

Thank you for showing an educated debate that debunks my thread. I take it Ron Paul is uneducated and bias as well when it comes to economics. Please, explain how my thread is biased and full of garbage with your educated facts.