Improving Economy has no effect on Main Street

News about the improvement in the American economy has left many puzzled as well as frustrated. According to many experts, the stock market seems to be on a rebound and stock prices have been growing steadily since March. However, although there are many signs to illustrate that the economy is in a better shape than it was last year, the unemployment rate continues to increase.
According to the U.S Bureau of Labor Statistics, the national rate of unemployment just reached 10.2 percent last month, after 25 years of being a single digit number. More than 29 states have reported an increase in the jobless rate and 13 states have reported an unemployment rate higher than the current national rate.
“The best thing we can say about the labor market right now is that it may be getting worse more slowly and the only thing left to do is to wait it out,” says Peter Griffin, an economist at the University of Virginia.
In a recent interview, Lu Pai, a Federal Reserve officer states, “The government is currently occupied with bailing out financial institutions and will consider the unemployment crisis at a more convenient time.”
A recent study shows that the number of part time workers who say they would like a full-time job but can’t find one has doubled since the recession began. This trend might continue for the next few years until companies decide to stop laying off millions of workers because of takeovers, and bailouts.
The only practical solution to this problem is, to continue to invest if you belong to the “investor class” and if you belong to the “working class,” continue to watch the government bailout failing banks and companies.

Muhammad Ali Tahir