9.8%

That is the announced unemployment rate given by the government today. This is pretty bad. Even though the recession is officially over, people are still fearful of losing jobs. Planet Money and other experts say that the 9.8% isn't a true reflection of the employment situation, as large numbers of people are giving up even looking for work, are underemployed, or are taking pay cuts. So if you add all that up, the rate of "unemployment" is closer to 17%. As a result of the unemployment and fear, spending is down as people save more and pay off debt as opposed to buying. This results in more job losses, as businesses aren't selling stuff and their profits drop. So they shed more jobs and the cycle continues. Still with me? So how do you stop that cycle? If you agree with the situation that I just described, then you cannot say that the market will self-correct and turn itself around on it's own. It can't. At least, it can't in any amount of time that people would be willing to give it. The only way to get this trend to stop is government intervention. Nothing else exists that can fill the void. Robert Reich and Paul Krugman have been shouting this for months, and its getting more and more absurd to argue against their points. I don't like debt, but the consequences of letting things go as they are has much scarier implications to the future than the implications of running up more debt now do. We are not in normal times where debt is just bad bad bad. We've pulled back from the brink, but we aren't heading away from the brink. We are coasting parallel to it and can still veer back. I do not want another bank bailout, but another stimulus is a good idea. But for God's sake let's make it go into effect NOW, not in 2010. Let's be sensible about this and that when the economy does pick up, let's figure out how to get this debt paid off.

As an aside, I am always amused to hear people who voted for Bush seem to have no problem with the waste and irresponsiblity of that administration. As soon as a Democrat gets into the White House, then all is lost and the government is dumb and irresponsible. Please. I agree that there is waste, but there is waste either way. Oversight will always be necessary, not when it is politically useful.