Economists React: Job Market the ‘Achilles Heel’ of Recovery

Various Economists’ give their assessments on the grim economic news regarding September’s unemployment numbers. http://blogs.wsj.com/economics/2009/10/02/economists-react-job-market-the-achilles-heel-of-recovery/

The biggest problem facing the nation is that small to medium business face enormous amount of doubts with regard to the future of the U.S. economy. These businesses face cash flow problems, have a hard time getting credit and the additional added dilemma the uncertainties of the health care debate coupled with high energy costs. Even if a recovery begins to transpire the nation faces the disastrous fiscal solvency of various states; especially California. California is facing over 12% unemployment and the situation is getting worse, it’s like have an anchor around your ankle as you swim you can stay afloat for awhile at some point you will sink. With 20% of the nations GDP in California, the state will be a drag on the nation’s economic recovery, eventually dragging it back into recession. Don’t expect any improvement with the current crop of candidates running for governor in 2010!