Economic Reports Muddle Predictions about Recovery

The Washington Times (Washington, DC), November 6, 2009 | Go to article overview

Economic Reports Muddle Predictions about Recovery


Byline: Chris Versace, SPECIAL TO THE WASHINGTON TIMES

We continue to get mixed results about the economy from both economic data streams and company earnings.

On the one hand, management teams of some companies, such as Cisco and Whole Foods, are saying their respective businesses are turning the corner. Even so, we are not out of the woods yet, Toto - for even while Cisco noted improving trends for its business, CEO John Chambers noted that concerns about the strength of the global economy remain, citing uncertainties regarding the strength and shape of the recovery.

Also, we have heard more news on corporate layoffs from the likes of Microsoft, Time and Sprint-Nextel.

This follows the monthly ADP-Macroeconomic Advisers national employment report that was released midweek and showed that private-sector jobs in the U.S. fell by 203,000 in October. Although this was better than the 227,000 jobs lost in September, the October results, combined with continuing jobless claims at more than 500,000 per week, is but the latest confirming sign that we are in for a protracted recovery.

One concern I have is how the recent bankruptcy of CIT Group and the continued tightness among banks when it comes to lending will affect small and medium-sized businesses, particularly those with lumpy or volatile cash flows. The risk is that even in an economy that has stabilized, the cash-flow volatility of these businesses that are not backstopped by a funding source for working capital needs - seasonal or otherwise - could result in additional layoffs in the coming weeks and months. Again, it's a concern, and given the expectation voiced by ADP that it does not see the unemployment rate peaking until sometime in the second half of 2010, I am not alone in my concerns. Currently, unemployment stands at 9.8 percent, the highest since 1983, and pundits predict it will reach 9.9 percent when new figures for October are released, set for Friday.

It comes as little surprise, then, that the Senate has voted to extend unemployment insurance by 14 weeks for jobless people who have exhausted their benefits. Moreover, in the 27 states, plus the District of Columbia and Puerto Rico, that have unemployment rates of 8.5 percent or higher, the jobless will receive an additional six weeks of benefits. Naturally one of the first questions that runs through my mind is, where will the additional funding come from to support this latest program extension amid a record federal budget deficit? Unemployment insurance payments, which average $308 per week, usually expire after six months, but Congress has already extended them twice.

Some economists theorize these benefit payments will act as an economic stimulant because they are spent quickly and help the jobless avert foreclosure and bankruptcy. Now, the theory is always interesting, but will be nice to see whether the real world data matches up against the theory. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Economic Reports Muddle Predictions about Recovery
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.