A Comment on the economy and unemployment. (No presidential remarks )

One of the most influential people on the US economy has spoken. Not the president, but the Chairman of the Federal Reserve System, Ben Bernanke. Like his predecessor, Alan Greenspan, Bernanke has great influence with well chosen words. He understands the power, limitations, and authority of each of the government branches as well as the federal Reserve System.

You won't find comments on either presidential candidate here, incumbent or the challenger, but rather a discussion on the economy and Congress. Many people blame the president for just about everything from the price of gas to the traffic jam they are stuck in while the reality is that the president simply does not have that much power. The people that make the changes that affect us are found in other groups, primarily Congress. The recent health care legislation was not passed by the president but Congress. It was the inability of Congress to act in a civilized manner and cooperate in a non-partisan manner that cost this country its valued AAA credit rating as Congress played party politics instead of resolving the major issues to adjust the debt ceiling and have a viable budget.

Breaking news now is that Ben Bernanke, Chairman of the Federal Reserve indicates that if Congress fails to act quickly , the US economy is likely headed back into another recession (I thought we were still in one based upon the current economy and job situation).

  http://www.thenewstribune.com/2012/07/18/2218402/bernanke-recession-likely-if-congress.html

"If Congress doesn't take action by the end of the year, a package of tax cuts adopted during George W. Bush's administration expires, while deep spending cuts kick in. If that happens, the economy would go over a "fiscal cliff." { Note that it was the administration i.e. Congress, not the president.}

Note that Bernanke recognizes the limits on authority on both the Federal Reserve System and Congress. " Bernanke stopped shot of telling Congress how to proceed. He challenged them to think broadly. 'Congress in in charge here, not the Federal Reserve,' he said."

From other sources, " Bernanke noted what the Congressional Budget Office has warned: A recession would occur, and 1.25 million fewer jobs would be created in 2013.


A word about job creation for those that don't appreciate the numbers. It is generally acknowledged that it takes between 200,000 and 250,000 new jobs EVERY MONTH to offset immigration and graduates entering the work force. A quarter of a million new jobs every month JUST TO BREAK EVEN! So when the news reports that last month the economy grew by 115,000 jobs, we are falling further and further behind. It takes 225,000 new jobs to break even and even more to recover those who lost jobs and graduates of the 2008, 2009, 2010, 2011, 2012 classes. (Yes, I could have simply said 2008 - 2012 but I wanted to list them for the effect of how long a time frame we have to recover.) I can only guess what the new jobs figure would have to be to recover those lost people within the next two years while more new graduates continue to enter the economy but it is a safe bet that we won't hit anything close to the required numbers for a long time. 

As we approach the elections, it is imperative that we vote wisely for people who will speak their conscience and vote according to the issues. All too often today we see votes at both the Federal and State level split along party lines. THAT is what upsets me so greatly. We the people (Nice phrase) voted for representatives to represent US, not a particular party. I am not aiming this at either political party but rather at both. Both sides consistently fail to carry out their sworn duties to represent the people.

Ben Bernanke clearly recognizes that it is on the back of Congress to secure the future of this country. The problem is that Congress is failing at their job. They are so wrapped up in their efforts to have their particular party prevail that they ignore the needs of the people they represent.

Now is the time for people to put serious effort into voting not for one party or another but for people who will vote to represent their people, no matter what the party says. It does happen and I greatly respect those who do so even when I disagree with them.

If we continue voting in party politicians, we have only ourselves to blame for the continuing mess we find ourselves in.

[Note: While I welcome and encourage discussion on both sides, all comments are moderated and political comments in reference to Obama or Romney will not be published so don't bother going there. This is about the economy and Congress.]