Yesterday, the Congressional Budget Office (CBO) issued a report that unemployment is projected to fall from 9.1 percent in the second quarter of 2011, to 8.9 percent in the fourth quarter of the year, and to 8.5 percent in the fourth quarter of 2012--and then remain above 8 percent until 2014.
Remember, back in 2009 the passage of the controversial stimulus package, which if passed, unemployment was never supposed to be above 8 percent. Fast forward to August 2011, almost $5 trillion dollars later and the nation's unemployment rate has been over 9 percent for almost three years, with it dropping below 9 percent only briefly. The Labor Department reported today that new applications for U.S. unemployment compensation rose 5,000 to 417,000.
Next month, after the Labor Day holiday, the President is going to give an address on his plan to stimulate job creation, and his proposal to reduce the massive federal debt. Since assuming office the President has repeatedly signaled that he is focusing on jobs, but has always pivoted to other priorities as the employment situation worsened in the country.
The debt debate signaled to American's the depth of dysfunction in Washington as each side blames the other for the fiscal mess, with neither side focusing on what matters most to Main Street USA; jobs.
The speech will be watched closely, and if the President reiterates previous proposals of more government spending and tax increases, the markets will have a negative reaction. Will just have to wait and see what the president proposes.
http://militarybriefingbook.com/topic.cfm?topic=U.S.%20Politics
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