The American economy is ill and the gloom is infecting the country. With symptoms of high oil price, high unemployment, inflation, stagnant wages, and burdened with a national debt crisis of about $13 trillion, the country is groaning for economic recovery.
Our manufacturing base has been gutted, the number of jobs is declining, more Americans are dependent on government handouts than ever before, and our dollar is dying. Millions of American families have been pushed to the edge of economic desperation. America is drowning in debt.
The official unemployment statistic stands at 9.7%, or 14.9 million American adults. Even if economic growth stays strong, unemployment is only expected to be down to 7.9 percent by the end of 2012.
American jobs have been shipped overseas, outsourced or have simply gone away at blistering paces. Millions of jobs become obsolete because of technology . Ironically, our business tax system incentivizes our companies to export jobs .
The truth is that there are not nearly enough jobs for all of us no matter how “educated” we are. This is creating a lot of anger and frustration, and now even the IMF is warning that we could see “an explosion of social unrest” if high unemployment persists.
One of the key reason why we have high unemployment is trade deficit. Warren Buffett has been quoted as saying, “The U.S trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt and could lead to political turmoil…”.
Since President Clinton signed NAFTA, over 7 million private sector jobs have been lost due to the free trade policy allowing for large deficits. America, without tariffs can not compete in the world market . Even GM, Chrysler had to be bailed out by the Government at tax Payers expense because they couldn’t compete. The number of unemployed is growing as more and more jobs are outsourced.
If we are going to improve jobs we must cut taxes and eliminate regulations that are driving companies out. If the private sector cannot absorb willing workers, the alternative is for the U.S. government to become the biggest employer and employ people into the public service.