What should be done to turn around the economic fear?

Fear.

Despite the better than expected jobs report today — unemployment fell to 9.1 percent in July as 117,000 new jobs were created — fear has taken over the stock and job markets. There is increasing talk of a double-dip recession.

Unfortunately, the tools generally available to deal with those problems are much fewer in number. The 2009 stimulus package stopped us from going over a cliff, but it didn’t restart the job engine. Now, rather than spending money to create jobs, the federal government is cutting spending. And the Federal Reserve already has cut short-term interest rates to near zero and had two rounds of bond-buying with limited results.

Meanwhile, companies are sitting on about $2.5 trillion in cash. But hiring lots of workers doesn’t appear to be on their agenda. At least 250,000 to 300,000 new jobs need to be created each month to put a significant dent in the jobless rate.

What do you think should be done? Tax cuts? Infrastructure spending? Let the free market runs it course?

- Henry Unger, The Biz Beat

For instant updates, follow me on Twitter.

80 comments Add your comment

redweather

August 5th, 2011
8:58 am

“Let the free market run its course?” That’s a good one. Was the free market still free when the government, i.e. the American taxpayer, ponied up $700,000,000,000 for the Wall Street bailout? I don’t think so.

And how about that $2.5 trillion in cash companies are sitting on? Oh wait, they won’t begin to spend that on things job creation unless they get some more tax breaks.

Uncle Joe Liberty

August 5th, 2011
8:59 am

I hope Mr. Obama and company had a wonderful time at his birthday bash. He has a lot to celebrate. He has managed to destroy the US economy, enable Muslim terrorists to advance in the Middle East and elsewhere, and bring more hatred between blacks and whites, have and have nots, etc. Not bad for a community organizer.

Once this administration is just a bad memory, we should follow Herman Cain’s good example and cut taxes, government red tape, and numerous wasteful spending (tax money to restore foreign mosques, ACORN, guns for Mexican drug gangs, failed school programs, for instance), Instead of the government waste programs, provide the private sector with more incentives. Stop penalizing individual incentive and success, while rewarding incompetenced and graft.

KeepinItREAL

August 5th, 2011
9:03 am

People just stopped looking!!! True rate is over 18% at least!

Baker

August 5th, 2011
9:04 am

If the folks in D.C. could actually push through some real cuts in Social Secuirty, Medicare, Medicaid, and (as the Pentagaon itself says) unnecessary defense programs, maybe that could free up some room for continued tax cuts and stimulus spending. Let’s hope this time that the stimulus spending doesn’t just go to Dem pet projects and actually some real infrastructure needs.

Having said that, we all know they won’t push through significant cuts, so we’re looking at a long haul.

Jim

August 5th, 2011
9:05 am

Why would a company go and spend the money they are sitting on when consumer spending is weak, confidence in the economy is low and ultimately cash is king? Most companies spend cash to see a measurable return on their investment – sales, marketshare, mindshare, etc. It is tough to justify spending right now as a business or consumer. I can’t say I blame them for sitting on their nest eggs for now. Contrarty to certain beliefs in DC, we won’t be able to spend our way out of this mess. I hope we do not see a double-dip. I’m hoping that the market is correcting itself as it seems to have grown to a “false” level. Lets keep our fingers crossed that things gradually start to improve. I’d much rather see slow and steady growth versus a big spike. With these big ups comes a down (see housing bubble circa 2008).

Logic

August 5th, 2011
9:09 am

What should be done to turn around the economic fear?
Repeal Obamacare
Balanced Budget Amendment
Repeal the amendment allowing the Feds to have income tax and replace with Fair Tax
New President, Senate & Congress who will do the 3 above
Problem Solved

rightwingextreme

August 5th, 2011
9:09 am

this report is bogus in that the only reason the “unemployment rate” went down is that an additional 193,000 people dropped out of the labor force….in other words they’ve given up looking for a job. factor those in and the rate should be somewhere around 9.3 or 9.4%.

i think the obamites in the financial media are starting to get smart…for the month of july they low-balled the estimated jobs to be created at 85k. so now the media can report jobs beat expectations as opposed to the other way.

real unemployment in this country is around 23-25%. just look around. we all know someone who is looking for a job. look at the shuttered windows in the strip malls. think about your own situation and ask yourself….is this really getting better?

Jon

August 5th, 2011
9:10 am

Companies will hire when demand warrants. Demand is driven by the middle class in this country. Slash their taxes, direct stimulus to them. The wealthy will be ok with their tax rates when their income soars off increased sales.

Logic

August 5th, 2011
9:10 am

Jimmy Carter is back in the form of Obama

What ever!!!!!!!!!!!!!!!

August 5th, 2011
9:10 am

Does not count the following:
Recent graduates – college and highschool
People who ran out of unemployment
People who cant qualify for unemployment due to the companies lying about why they let them go. (This happens all the time)
People who are working part time as a clerk when their profession is a engineer, you know that stuff

Real unemployment numbers are actually above 20%

Thanks Obama and your DUMOCRATIC cronies. You have managed to shut the business world down while maintaining your BIG UNION cronies and taking over the AUTO Industry and BANKING industry. I guess their friends who keep them in office are more important then the country they represent. Who could figure.

Obama

August 5th, 2011
9:11 am

I can’t wait till my next birthday.

What ever!!!!!!!!!!!!!!!

August 5th, 2011
9:12 am

Oh forgot, Do you know the umemployment rate on blacks is upward of 30%. I hope all black people fall on their knees and honor the man (OBAMA) who has done nothing but create the race card again and turn his back on the Blacks in this country.

When will people realize that Obama represents his own interests and THAT IS ALL. He cares nothing about this country or our Americans.

Paul Revere

August 5th, 2011
9:13 am

The Numbers are bogus! Next month, as always, they will be revised downward and it will be forgotten.

Can we believe anything coming from this government? Do U believe anything coming from Washington nowadays except our tax bills?

I don’t!

A Conservative Voice

August 5th, 2011
9:22 am

You and I and everyone else knows that this figure (9.1%) is pure BS. After the fiasco last week, I don’t believe anything that comes out of DC nor do I believe anyone connected with our federal government. They are all corrupt and need to be swept out like the trash they are. I am so tired of hearing each side saying…..”we won, we won”, what about the american people they are sworn to represent? A message needs to be sent on November 6, 2012.

Terry

August 5th, 2011
9:22 am

Get a new president

Laurie

August 5th, 2011
9:23 am

I’ve been tired of the conflicting stories about employment, housing, and our economy in general, for a while now. Most people know personally how bad things are in the US. ALL those yahoos in DC need to kicked out of their plush government offices and stripped of their jobs, pensions,and healthcare.

Greg

August 5th, 2011
9:29 am

The govt lies. How many times has obuma changed the actual gdp numbers. First qtr goes from 2.1 to .4? It;s probably actually negative. No doubt q2 was negative. Q3 will likely be too. But the obum will tell us it isn’t. Over 200 regulations he’s thrown into our face just this year. THey cost over 2 trillion a year. Then his god awful health bill and hey free health check ups for women, free birth control, free everything! Oh wait. Someone has to pay for it! Through much higher premiums! Funny how they left this part out of the cbo cost! So who wants to hire with this bs going on? Get the turd out of office, hopefully vote in some decent congressman and senators, repeal this hideous health care and deregulate, keep taxes where they are and money will invest and jobs will come and the economy will rocket. There’s trillions just waiting to work thanks to ben the idiot. It’s just a matter of getting the right leader and policy to get that money to work.

Ben

August 5th, 2011
9:33 am

I love the generic vitriol towards Obama with regards to the Unemployment rate. Fact is, it’s a month to month review and it’s flucuating all the time.

Henry, the fact is that there is nothing that can be done to assuage fear about the economy. Many people have been so shell shocked by the last few years that, psychologically, it will stay with people for the rest of their lives.

It’s going to take a generation to pull out of this.

Educated

August 5th, 2011
9:38 am

Can we get the educated people to chime in now. Attention all dummies. Time for you to shut the hell up!

Ga Guy

August 5th, 2011
9:40 am

You should say “elect a congress who does not subscribe to the primary goal of wanting the president to fail”. Seriously, even if you are President Obama detractor and adamantly against what he is doing, have you ever in seen this much vitriol toward a President from the very people he is supposed to be working with directly?

I agree that the (rapidly shrinking) middle class is the true block of persons in need of the breaks given to the wealthy and lower income in this nation. Once middle class confidence is restored, you’ll see a turnaround.

Companies sitting on 2.5 Trillion dollars, yet won’t hire. Oh thats right. They are sending most of the jobs overseas. That is President Obama’s fault too correct? That is also where we need reform. These companies shipping jobs overseas, yet still have tons of breaks. Doesn’t seem right to me.

If we repeal “Obamacare”, what is the replacement? Why is it that many nations can have universal healthcare (which, last I checked what the world is wrong with ensuring every member of society has access to basic healthcare without being indebted for decades?) but it passes here and people are in an uproar? It doesn’t seem to be destroying the other score of nations that have some form of it in place.

Provide the private sector with more incentive: Small businesses, yes. Corporations have tons of incentives and aren’t hiring. Record profits, yet still laying people off?

One day, I really hope we as a collective body of people wake up and realize its much deeper than (D) v. (R). Divide and conquer works. Black v White. Gay v. Straight. Legals v. Illegals are all marginal at best. The real separation is “Wealthy” vs “Everyone else”.

Oh well.

Brian powdertown

August 5th, 2011
9:47 am

Do not be sheep people. Do not believe anything you see from ajc or the ap they are monitored by the government so they will push what they have been told. They are no different than al jezzera or whatever that state run arab news channel is called.

Tate

August 5th, 2011
9:53 am

Hey Ben ya fool. It’s HIS policies that have caused businesses to lay people off and not hire. It’s HIS massive regulations that have suffocated businesses. Get it now? Probably not. Once a dumbass, always a dumbass.

Tom

August 5th, 2011
9:53 am

To “Educated” who is obviously a “right thinking person”:

Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty.

This is known as “bad luck.” — Robert Heinlein

—–

President Obama’s philosophies tend to bring a fair amount of “bad luck”.

Joel

August 5th, 2011
10:00 am

You can almost feel the hatred of Obama here. Remember folks – the day President Obama took office we were losing 800,000 jobs a month. We have now had 22 consecutive months of adding jobs. Put that in your tea……

Jim

August 5th, 2011
10:05 am

Joel, please continue to tell us how much better things are today and how Obama has laid a great foundation for growth down the road. I’d be interested to hear what else we can put in our tea besides “shovel ready jobs” and “change”

Nojoke

August 5th, 2011
10:05 am

I work for the CDC, we are federal government, our jobs are safe, yeahhhhhhhh!

FairTaxTime

August 5th, 2011
10:08 am

The Fair Tax can make a positive impact on the economy. Imagine if you collected your entire paycheck. No payroll taxes means you’d have 29% more income coming in. Drug dealers, illegal aliens, foreign tourist would be finally paying in to our new tax system. You only pay taxes on what you buy. Go to http://www.fairtax.org , and get educated on this outstanding and well researched plan. Don’t believe the lies that other government organizations are spreading about this sensible idea. Also, learn the history of income tax, and you’ll probably be as disgusted as I am.

GaMom

August 5th, 2011
10:10 am

I’m glad to see so many have seen through this “fake” number…. They will twist figures to make you think what they want. If they are reporting these bad figures – just imagine what the real truth is!!! Obama is ruining our economy – I pray we can survive until Nov. 2012……

Tom

August 5th, 2011
10:13 am

Hey Joel, we are just yelling into the wind as you keep your fingers in your ear chanting lalalalallala

These are the issues we are fussing about. You see a number the government puts out, we see the reality.

“The labor force participation rate, and the reason why the general unemployment rate declined to 9.1%, just dropped to 63.9%, the lowest in 16 years, or matches the participation rate from January 1984.”

This is why we are getting upset.

Taxpayer

August 5th, 2011
10:19 am

Ga Guy:
Seriously, even if you are President Obama detractor and adamantly against what he is doing, have you ever in seen this much vitriol toward a President from the very people he is supposed to be working with directly?

Yes, there was quite a bit of vitriol towards George Bush. Why did Obama vote against raising the debt ceiling when he was a Senator? Why do the Democrats blame the debt on “Unfunded Wars” but yet we are still in Iraq, Afghanistan, Guantamo and a “New Unfunded War” Libya? Wake up and realize the Rep. & Dems. are lying to you. You might want to open your mind to other voices in the political arena.

Refugee

August 5th, 2011
10:20 am

All govt statistics are lies to manipulate the sheep. Economic collapse is because of govt actions, not the lack thereof. Read Doug Casey or Charles Hugh Smith; if you can follow the logic you may not be a sheeple. Just do not let govt or the sheeple find out. You will be put on a “list” lol.

Optimist Club

August 5th, 2011
10:27 am

What should be done to turn around the economic fear?

Nothing can be done until President Obama can be kicked out of the Oval Office. There is no confidence in this man as our nation’s leader. He can’t get even get a small victory out of Bin Laden’s demise. When you give someone like Obama power they don’t earn – this is what happens. The bulk of the people that voted for him care nothing about what was about to happen to this country. These people wanted to make conservatives suffer, but they are the ones that are suffering the most. Many of them stil have their head buried deep! Of course Obama did not initiate these problems, but the socialist and entiltement mentality of his beloved Democrat party did.

I find it hysterically ironic that on our President’s 50th Birthday that the financial markets suffered. That was a wake up “gift” to the American public that Obama is ineffective and needs to be shown the quickest routes out of Washington DC!

People like “Educated” and “Joel” need a big “Bless Your Heart”.

Joel

August 5th, 2011
10:30 am

It is quite simple. Adding jobs is better than losing them. If you want to argue the numbers are wrong – or that we should be adding more jobs – then go ahead.

Trends

August 5th, 2011
10:30 am

Unemployed is the new Entrepreneur

Obama is the new Carter

Ben

August 5th, 2011
10:31 am

Tate, WOW. You have no idea what you’re talking about but thanks for the insults and name calling. I’ve come to expect nothing less from the uninformed right.

You’re the reason discourse in this country is in the toilet.

Lost in space GOP/TEA Party contract on america

August 5th, 2011
10:36 am

Gop is at WAR on worker!!!

Pile it higher

August 5th, 2011
10:41 am

“The 2009 stimulus package stopped us from going over a cliff”- Yeah, and up is down and water ain’t wet…….

Point/Counterpoint

August 5th, 2011
10:41 am

Whatever!!!!! – “People who cant qualify for unemployment due to the companies lying about why they let them go. (This happens all the time”

Hey Chief, when your finished ranting, here’s some helpful info for you.

1. The unemployment process leans very heavily towards the EMPLOYEE. I.E. the burden of proof in termination falls 100% on the EMPLOYER to provide a reasonable explaination as to the decision to terminate.

2. If you are denied benefits, you can appeal the determination which will lead to an Appeals Hearing. In the hearing you will have an opportunity to defend your position, and the employer can defend theirs. Usually credible documentation is the determinaig factor in the outcome of this hearing.

3. If you don’t like the decision of the hearing officer after the appeal, you can then submit a request for a review of your case by the Georgia Department of Labor Board of Review.

4. If you are not satisfied with the determination form the GDOLBOR, you can then appeal to the Georgia Superior Court and name both the employer and the Labor Commissioner as co- defendents in your request.

Simply saying that you can be denied unemployment because the employer “made things up” shows a clear lack of understanding as to how things actually work. Which leads me to believe that perhaps you should spend more time analyzing rather than raving.

Prophet

August 5th, 2011
10:42 am

the only and literal answer to the question of the day (and also, should we make it to tomorrow) is:

TURN AWAY FROM FEAR, THEN TURN TOWARDS FAITH IN GOD!!

peace

What is the new mantra?

August 5th, 2011
10:44 am

Let me see if I get this straight, we should give more tax incentives to corporations
and they will hire more folks. Heeeeeellooooooooooo !!!!!!
They were given tax incentives and companies are not hiring.
The current American business mantra is;
“We can’t hire because the economy is slow. Oh, by the way,
we are eliminating more jobs due to the slowdown.”
Corporations are sitting on tons of cash, eliminating jobs and some
firms are actually making huge profits while jobs are few and far between.
More incentives….. I don’t think so !

Now, that I a chance to vent, rant and rave, it is sad to say I have
no solutions to this problem ! I will leave that up to the experts.

Lost in space GOP/TEA Party contract on america

August 5th, 2011
10:45 am

36% of Alabama now on welfare Fact!!and the hate government . your GOP at work to cut your own head off keep voting teacher job cuts and all government job they will cut you up worker! They are not for working class Fact. Name one thing they have done for working people?

ExExaminer

August 5th, 2011
10:56 am

Oh please. 9%?? Who believes this number is accurate??

askip32

August 5th, 2011
11:03 am

I know this will be real hard for us to think about but until this country turns back to God instead of trying to keep Him out of it, things will get worse.

Melissa

August 5th, 2011
11:05 am

Muzzle the media! They fan the flames of fear.

BYH

August 5th, 2011
11:07 am

Seems that “Lost in space” has some comments that are lost in translation.

Let's Be Reasonable

August 5th, 2011
11:13 am

Under Mr. Reagan unemployment did hover around 11%. However, unlike our current situation Mr. Reagan did not take office when the economy was on the brink of another great depression, and the market had not lost 20% of its value like it did in 2008. The auto industry was not facing extinction, nor did major investment firms go belly up. Mr. Reagan did not inherit a housing market implosion. Mr. Reagan did not come into office with two unfinished wars. Back during that time the American ecnomy did not have to compete with India, China nor Brazil, and European governments wern’t being bailed out. Rave about Mr. Obama’s policies if it makes you feel better, but please put things in perspective. Not even Superman can right this massive ship with all of its moving parts and an ever increasing interconnected world economy couple with a political system where winning is most important, in three years. The author of this piece writes about a positive move regarding the nation’s unemployment picture, and the Obama detractors totally ignore the smidgen of good news and go straight for the president’s throat. Sad indeed.

james

August 5th, 2011
11:16 am

lost in space=marta train prophet

Carlos

August 5th, 2011
11:23 am

People are fooling themselves if they think electing a Republican president will fix the economy. Like another post said, this problem will take a generation to fix. There is no quick fix and any one claiming so is trying to sell you something.

I say after the financial meltdown of late 2008. We are lucky to have 9-10 % unemployment.

LOL!!!!!

August 5th, 2011
11:35 am

Laughing at these clowns that think things will just be automatically fixed with a new president in 2012! LOL! Ya’ll trippin’!

plutocratarianism

August 5th, 2011
11:49 am

Letting the free market run its course will certainly lead to something called Capital Flight, this same exact thing happened to the Soviet Union economy during its collapse, it is when businesses and corporations pack their bags and shift their investment and capital over to rising economies like China and India. Unfortunately there is only very few ways to prevent Capital Flight from one country to another, and the government has to play a very large role in regulating that or giving incentives to bring back capital and investment to this country. If the government wants to try and play the incentive way and try to give tax breaks and lower wages to create jobs, well bad news because Americans will never ever win the global Race to the Bottom, unless they are willing to go to work at nearby sweatshops for 50 cents an hour and live in slums.
I don’t see the government trying to regulate the Capital Flight going on either, so in the long term unless it is stopped, then millions of more Americans are going to lose their jobs and the standard of living of this country will continue to stagnate until it compares to other third world countries.
All I can say is this country is going down the drain, I see alot of political, economic and social instability in the very near future of this country.