Nexus: Chapman's Journal of Law and Public Policy

On September 15, Federal Reserve Chairman Ben Bernanke said that the recession was “very likely over,” although this rebound would not produce many jobs. Since the crash of the financial markets, unemployment has consistently been double digits. Currently, it is reported that the unemployment rate is 15.6%. Even so, the unemployment rate only includes those who actually apply for the unemployment benefits and qualify. Basically, whether they are able and available for work and whether they are actively seeking work. Outside of this statistic, there are thousands of people without jobs, some who have just given up. These days, there have been able-bodied people who have even taken to the streets asking for any type of work to support their families.

People obviously need employment. But the companies who can hire people need funds. They need these funds from the economy, and the economy needs people to spend money. Sadly, people without jobs have no money to spend unless they rely on credit, a significant cause of this crash in the first place. Is this an endless cycle? Where is our money going?

Companies can only hire so many people with their budget without going bankrupt, as the government has required a minimum wage and certain benefits for all employees. But even then, the funds are not evenly distributed. For example, executives earn hundreds of thousands, if not millions, for a little amount of work compared to the other workers. They give themselves large bonuses in times of economic need. Without this disparity, there could possibly be more jobs for the working class. Although the cause may have been the 2008 bailouts and exemptions, the Obama administration has realized this is a problem and, since September, have been working to promote a new culture within Wall Street firms to fix this bloated bonus problem.

Currently, unemployment is still on the rise, with people only spending 1% more than before. Hopefully, a new corporate culture will assist in funding new jobs, and prevent corporate executives from receiving more than their fair share. As it has only been mere weeks since Bernanke's announcement and the administration’s new view, we will have to wait to find out whether the recession is really over.

References:

http://online.wsj.com/article/SB125301730771311713.html

http://www.timesrecordnews.com/news/2009/mar/21/change-we-dont-believe-in-obamas-poorly-made-to/

http://news.ph.msn.com/business/article.aspx?cp-documentid=3583712