Th September jobs report showed that employers shaved another 159,000 employees off of their payrolls, the ninth straight month of job losses. The
Los Angeles Times highlights the many obstacles facing our economy, including:
* Consumers, who account for more than two-thirds of the nation's total economic activity and who boosted their spending earlier in the year thanks in part to more than $100 billion in government stimulus checks, have reversed course and begun cutting expenditures. Real consumption, after adjustment for inflation, slipped two-tenths of a point in June, a half-point in July and flat-lined in August, the latest month for which numbers are available, according to the government's Bureau of Economic Analysis.
* Manufacturers, many of whom had managed to profit because the weak U.S. dollar helped boost exports, have seen their business begin to dry up in recent months. New factory orders unexpectedly dropped 4% in August, the Commerce Department said Friday, the biggest decline in two years. Capital goods orders, a key indicator of companies' future investment plans, slipped 2.4%, the biggest drop in more than a year and a half.
* Governments, especially state governments, have begun making steep cuts. In all, 29 of the 50 states had already cut spending, raised taxes or tapped emergency funds to balance their budgets for the fiscal year that began July 1, said Nicholas Johnson, an analyst with the Center on Budget and Policy Priorities in Washington. But 15 of those states, including Arizona and New York, are back in the red; stalling economic growth has caused their already shrunken tax revenues to contract further.
I hope our elected leaders knew what they were doing last week, when they passed the bailout bill.
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