Will Unemployment Rise or Decline
Since the spark of the financial crisis in the mid of 2007, even the most powerful and stable economies are finding it tedious to weather the economic turmoil that has emerged in its aftermath. Some of the immediate effects of the financial bust included nose diving share prices of stocks, plummeting product sales and eroding consumer credibility. Furthermore banks and other financial institutions from fear of going bankrupt restricted accessibility of loans to prospective clients and businesses which manifested it in the form of employee axing and wide scale retrenchment from major organizations of the world, thus surging the level of unemployment.
As initial ramifications of the meltdown began to unfold US felt the greatest pinch of the recession registering an unprecedented unemployment rate of approximately 17% which was soon controlled and brought to 10% in the year 2010. Forbes reported that US Labor Department presented a gloomy and alarming situation as payrolls slumped by 84,000 whereas the economy lost a phenomenal number of 605,000 jobs. It was further accentuated by economists that the government will have to create up to 100,000 employment opportunities each month to manage the control the aggravating gravity of the situation. (Moran, 2008)
In another article written for Newsweek by Andrew Nagorski says that talks regarding the crumbling and subsequent decline of the American Empire are making rounds among people and the depressing state of the economy, ballooning unemployment level coupled with fueling public agitation is being termed as a prime reason behind this. Meanwhile there are also concerns rising regarding the failed attempts of the US administration to tackle the economic situation ingeniously, or at least develop a serious strategy through which the entire crisis can effectively be weathered. In comparison to this, countries like China, India and Germany are applying all measures to reignite their economic engines in order to confront the long maintained dollar hegemony whereas no comprehensive strategy is being engineered by US for rejuvenation. News from the technological sector where America has always created novel benchmarks as harbingers for others to pursue, there is substantial evidence that the future of these established standards is undoubtedly grim. (Nagorski, 2010)
According to Mike McConnell, former director of national security intelligence ‘US is in a state of cyber-war and it is losing it’ much of the reforms taken by the Presidency are not boring the fruit which in is manifests itself comprehensibly in the form of 51% of the population said that the state of economy has further declined during the Obama presidency. Many economic analysts have also pointed out that the Greek economic crisis is symptomatic of the underlying flaws and loopholes of the capitalist economic system, but in reality American economy is in a much better and auspicious state than Greece with 9.9% of the GDP as budget deficit.
A concomitant effect of the surging unemployment has also been demonstrated itself in the form of less financial budget allocation or other basic necessities such as health and education, especially in times when the consumer demands greater relief and the government is not willing to provide them through the excuse of belt tightening due to deteriorating financial conditions. However in such financially appalling times some efforts have provided commendable results by through efforts to bring the unemployment level to 8.5% (Fox, 2009)
In such circumstances it is important that a well-managed and comprehensive strategy is devised by the state which is based on an ingenious and well-orchestrated plan rather than hefty bailouts and stimulus packages.