Obama and Economy Current Event

Here is My second Current event for this week.

Article, "It will be hard to create jobs," from CNNMoney.com.

http://money.cnn.com/2008/11/05/news/companies/jobs_outlook/index.htm


Current Event

In this article, "It will be hard to create jobs," from CNNMoney.com, by Chris Isidore, the author talks about how jobs in the USA are still declining and will probably continue to do so even when Obama is in office. The article says that even though Obama had the better economic plan, there is really nothing he can do about unemployment and job loss in the short term. Andrew Reina says, "It's an uphill battle. He's going to have a lot of work on his hands early on." the article also talks about what Obama should focus on early on in his presidency. One of these things is Obama helping out the automakers of this country. The auto industry would like the same help from the government that the banks have gotten recently. Mark Zandi, Moody's economy.com's chief economist, says that businesses will do what they will do regardless of the government, in the next six months. Other economists say that it could be 2010 by the time jobs make a comeback. They do believe that Obama can set up a program to create long term jobs in the US. Mark Vitner, chief economist from Wachovia, says, Banks will continue to tighten until we see an improvement in credit quality. That's 18 months to two years away. The credit cycle has to pay out, You can't legislate lending."

I agree with this article because I think that short term job stimulation and lending stimulation will not work in tody's economy. Jobs need to make a comeback but that really can't happen until the economy is "fixed," and companies can hire more people.