“Weak Job Data May Weigh on Fed’s Decision on Stimulus”

“Weak Job Data May Weigh on Fed’s Decision on Stimulus”

Miriam De Castilla González 141399

Procesos y Gobierno de Estados Unidos

22 de octubre de 2013

This new is located in NYTIMES, and it is about the relation between job and political problems in government. http://www.nytimes.com/2013/10/23/business/economy/us-economy-added-148000-jobs-in-september.html?hp

After the federal government shutdown and debt ceiling crisis this month the economy added just 148,000 jobs in September, the Labor Department reported on Tuesday in a discouraging economic snapshot taken just before a federal shutdown that resulted in hundreds of thousands of furloughs. That shutdown, which delayed the release of the September employment report by more than two weeks, is expected to weigh on growth when the next monthly job market data is released on Nov. 8, a week behind schedule.

Economists have been counting on job growth to pick up speed. That could finally start putting a more substantial share of the 11.3 million idle Americans back to work and make a greater dent in the unemployment rate, which ticked down to 7.2 percent last month. But those expectations are being dashed, while the Federal Reserve has been trying to promote growth, the rest of Washington has largely been working in the opposite direction, analysts said, with Congress creating drags on the economy through resumption of a payroll tax that began in January, the across-the-board budget cuts known as sequestration that began in March, and then the partial government shutdown and debt ceiling crisis in October.

The pace of employment growth in September was slower than the average rate over the previous year, which was 185,000 jobs a month. The unemployment rate fell to 7.2, from 7.3 percent the previous month, a change that was not statistically significant. In light of the moderate tone of the September employment report, we have pushed out our expectation for the first Fed tapering in the pace of asset purchases to March 2014 from December 2013,” economists at Barclays wrote in a note to clients.

I am disagree with the political tactics of republicans, due to the political ideology in United States of America should be the democracy, I mean what people need or want. However in last weeks and probably in the next months we only see a dispute de interest between democratic and republicans with the federal government shutdown and debt ceiling crisis.

 So, I thing that the economy seems to be in a worse situation now than before of use all this kind of political strategies. On the other hand, as we can see in the last paragraphs, the unemployment rate has been affected and some people could lost definitely their jobs in the next months because republicans are planning another shut down the next year.

In conclusion, we could see another economic crisis due to an economic political crisis. I mean, if any of both parties decide to take a resolution of the main problems, people would take the negative effects as unemployment, living without public services, economic losses in governmental companies and other benefits that help to grow up the American economy.