Thursday, July 01, 2010

Even More Bad News

Home Sales and construction are slowing down:

A slowdown in the housing and construction markets contributed to a sluggish outlook for the economy Thursday, highlighting the significance of government stimulus and job creation.

According to new statistics, pending homes sales and construction both declined in May. In addition, figures showed that while manufacturers recorded some gains in June, the pace of activity in that sector slowed last month compared with May and also came in slightly below estimates.

Auto Sales Down:

New-vehicle sales in the United States slowed in June, automakers and analysts said, raising concerns that the market’s recovery could be stalling after months of slow but encouraging gains.

The jobless sure are messing things up for the market's recovery.
This isn't likely to change any time soon. The hiring outlook isn't good:

The weak private sector job growth, coupled with the loss of more than 200,000 census jobs in June, has economists surveyed by forecasting an overall loss of about 100,000 jobs for June. The government will release those figures Friday. The unemployment rate is expected to rise to 9.8% from 9.7% in May.

The Senate failed again to pass an extension of unemployment benefits.

Lurking beneath the deficit concerns for some members is the suspicion that the extended benefits discourage people from looking for work -- even though there are five people vying for every available job and a full third of the 15 million unemployed don't actually receive the benefits.

If Congress eventually does reauthorize the aid, people eligible for extended benefits during the lapse will be paid retroactively. Failure to do so would be unprecedented: Since the 1950s extended federal benefits have never been allowed to expire with a national unemployment rate above 7.2 percent. The current rate stands at 9.7 percent.

The deficit peacocks claim that extending benefits will increase the deficit. No word on how the deficit will decrease with even more people out of work living in poverty.

cross-posted at MainSt/


DissedBelief said...

I don't hear any noise about this from Judd Gregg or even local Gene Chandler, I think because they don't care about it. In my world, they will lose their substantial health care benefits to subsidize those out of work. Mr. Gregg may also be taxed an extra 6% to cover unemployment costs. He will not be allowed to retire because like us common folk, will have to work until death.

DissedBelief said...

I find it absolutely amazing that many "pundits" express their worthless opinions such as the one that individuals receiving "benefits' will not be motivated to seek work. Is this the same crowd that insists that mothers receiving welfare are not committed or motivated to finding work? Yes they are. If more our of tax payer dollars were spent in job training and not war, we may be a very different society. A successful one in other words.