As most of the economists have feared throughout the year (though not for the November ones), the unemployment inched up to 9.8 percent and here the whole notion of the stimulus passed after the new President came in went down the drain. The President and his team were telling that if the stimulus passes, the unemployment will not rise beyond 8 percent. But since economics is an inexact science, it did not went their way and in order to reduce unemployment, the interest rates are almost next to zero and printing money is on the overdrive and still the unemployment numbers have not gone down below 9 percent for quite a few months now.
I don’t know what kind of economists’ government has but there is something wrong with the way, the policies of our government is not having the desired effect as wished. Nobody has an idea how to move the economy along and reduce the unemployment. Although different suggestions are stated from time to time in the newspapers, internet and on the television, but even if all the suggestions are taken into account, it takes time to implement them and it is at best a trial and error process. And with millions of people out of work and also losing (or have lost) unemployment benefits, the only thing that we don’t have right now is time and we don’t want to experiment now with different policies lest they fail and we are back to the drawing board again. So keep on seeing elevated levels of unemployment (and my posts on this situation).