There are about twelve million Americans currently without a job, but many people think this figure is a huge underestimation. Many people who have been searching for work for some time have just given up. These are not always listed in the figures for unemployment that the US use.
There are many issues involved in the Presidential Race of course, but jobs is probably the most important to most people. For the Americans it is essential and this is reflected as one of the Centrals Banks main aims – maximum employment.
The Federal Reserve doesn’t think things will improve either unless action is taken. They are concerned that the actual and predicted economic growth will not make much of an impact in reducing the unemployment level. So they have decided to launch QE3, the third round of Quantative Easing to help boost the economy.
The idea is to keep the interest rates low and create an environment that is condusive to growth and a sustained improvement in the labor market. The Conservatives are of course not pleased about this, even suggesting that the federal Reserves act amounts to treason. Their argument is that instead of printing more money (which is effectively what QE amounts to – the American economy should be creating wealth. The artificial and temporary injections will not solve the long term growth problem that exist.
It is an issue that effects virtually every American family in some way. There is hope that the US which is famed for their entrepreneurial spirit will find ways to promote more growth and new opportunities. The internet is becoming more and more important to the economy with many people running internet businesses like this Irish one here which create wealth and opportunity in the economy.