Wednesday, August 31, 2011

Workers' Layoff Fears Higher Under Obama Than Bush And Could Be Cause Of Low Consumer Spending

From The New York Times Economix Blog, "Job Insecurity Remains High" by Catherine Rampell, a chart:

The NY Times/Gallup chart above shows that employees' fears about their work income is higher during the current recession than it was anytime during the last decade. No wonder the economy is in the doldrums.

Increased uncertainty about future employment income, along with the increased length of unemployment, lowers workers' and households' spending. Lower consumer spending obviously means lower consumer demand for goods and services and lower GDP.

The chart shows that job income insecurity doubled during Obama's administration, and well after Bush left office and the start of the recession and financial crisis. Clearly Obama's economic policies, actions and rhetoric are not reassuring to US workers that they will continue to have a job.

Could the fix to our economic problems be as easy as changing the seat holder of the bully pulpit of the presidency to a person whose action and talk would reassure the American public about their economic future, whether that person belongs to the Democratic or Republican party?

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