In Christopher S. Rugaber’s blog, he mentions that with the previous recession taking place almost two and a half years ago, U.S. citizens’ fear another recession may take place due to high rates of unemployment. To ease off fears of a new recession, the economy has added 103,000 jobs as of September.
However, this is still not enough to compensate for the high employment rate in the U.S. Currently, 14 million Americans still remain unemployed, with an additional 9.3 million working as part time but would rather work full time.Since unemployment leads to a lowered household income, consumers are less inclined to spending money.
After reading his blog and doing some research, I believe the loss of jobs nationwide is mainly due to a shortage of cash flow in the economy. With high taxes placed on companies, jobs are cut in order to counterbalance the costs. However, with large American corporations such as Wal-Mart making billions in revenue a year, higher tax rates should apply. Once a sufficient flow of money is in circulation, the recovering economy will in turn stimulate job opportunities.