The economic projections released by the Federal Reserve on Wednesday estimated that in less than two years the unemployment rate would be down to 7 to 7 ½ percent, with the economy growing at an inflation-adjusted rate of nearly 4 percent. And in the next three to five years, the unemployment rate would likely be back to normal: between 5.2 and 5.6 percent.
This is wishful thinking. Okun’s Law (or rule of thumb) says that it’s going to take inflation-adjusted growth in the economy of at least 3 percent to make any dent at all in the unemployment rate. And even if GDP does grow at 4 percent, as the Fed projects, unemployment will likely drop by less than one half of one percent, or still well above 8 percent. Not only does that not bode well for President Obama’s reelection chances (no President since FDR has been elected to a second term when unemployment has been over 7.2 percent), it’s also bad news for those who continue their job search in a flat economy.
Britain's leading financial newspaper, the London Financial Times, now believes that the U.S. economy may be headed toward a Japanese-style "Lost Decade."
Mark your calendar! There’s a new threat to our national independence and prosperity. It’s the U.S.-China Governors Forum scheduled for July 15-17 in Salt Lake City and held in connection with an annual conference of the National Governors Association (NGA).
JBS CEO Art Thompson's topics this week — Dangerous National Labor Relations Board decisions; Chinese navy and Pakistan.
The statutory national debt limit, raised in late 2010 to $14.3 trillion, was exceeded in mid-May this year. There are only two choices to remedy this problem: (1) raise the debt limit; or (2) drastically and severely cut back on spending.
In the following interview with Art Thompson, CEO of The John Birch Society, he offers and lays out The John Birch Society’s policies and positions on an array of issues that affect the national economy.
Free banking or central banking? Hard money or fiat money? These questions of monetary policy have been part of the national debate since the founding of the country, fortunately however, there always emerged those, such as Andrew Jackson and Grover Cleveland, to restore a sound money policy of gold and silver as legal tender and no central bank.
JBS CEO Art Thompson's topics this week -- Libya, Planned Parenthood, Wisconsin Unions: We were there long before the street demonstrations; Sanger founder of PP was a socialist, not a Republican; Unions get ugly in Wisconsin.
JBS CEO Art Thompson's topic this week: War in Wisconsin — The socialists have come out even more into the open with their call for a general strike; public employees are also legislators voting for their own benefits.