US Sees Modest Job Growth

This article out of China explains how in the recent months less and less Americans are requesting jobless benefits from government funded programs than in the past couple of years. After the Great Recession in 2008, the unemployment rate grew to 10%, one of the highest rates since the great depression.  While the current rate has dropped to around 8%, this is dropping very, very slowly.  This rate also under approximates the true unemployment rate in America, because it doesn't take into consideration the discouraged workers, or those who have given up looking.  With more than 2000 American's dropping their request for federal aid in this tough employment time, America still has a long way to go to get to where we were at around 4-5% in the mid 2000s. The economy is on the upturn, but it still seems as if there is a steep hill ahead.

http://www.shanghaidaily.com/nsp/Business/2012/05/25/US%2Bsees%2Bmodest%2Bjob%2Bgrowth/

China Supply and Demand

In the chinese economy, there is beginning to be an issue with supply and demand over products, more specifically those that are farmed.  This article explains the incident of a farmer committing suicide after he found himself in economic hardship, unable to sell his crop and make any profit off of his cabbage. China being a communist society, for a plate of vegetables to be placed on the dining table, it has to go through numerous processes, including testing, approval, loading, wholesale and distribution. While farmers are suffering greatly as the price of crop at their level is decreasing, the price of the food to consumers is staying the same and keeping a steady demand after all of the prices that are added on after the initial buy. Things like road tolls and taxes are added on, creating a much higher price for the goods than the farmer sells them for.  This is becoming an issue at the supply level as farmers are wanting to supply less because they are having a hard time being comfortable and enjoying their lives.  The government has stressed that it will try to ensure its citizens lead happy lives. However, a recently concluded survey showed that 70 percent of those polled said they didn’t feel they have a good life. 

 

http://the-diplomat.com/china-power/2011/05/03/china%E2%80%99s-unhappy-uneven-growth/

The Facebook IPO Cartoon 2

One of if not the most anticipated IPO occurred this past week, that being the Initial Public Offering of Facebook's stock.  Starting at just under $40 a share, Facebook's initial price on the stock market is one of the highest of all time for a starting value, causing many economists to question the future as a public entity.  In the cartoon, big time wall-street investors are in the elevator hoping to get a hold on some stock, while the common-folk is forced out of the elevator with no chance at obtaining any. With only a certain amount of shares available, the majority of these were obtained by big name funds and private investors, not allowing someone like you and I to get our chance at any. After a few days with Facebook's price per share down nearly 10% maybe it's a good thing that I didn't get a chance to invest in it yet. With such high expectations and such a high IPO price, it seems almost impossible that Facebook will live up to the hype that it has found itself in.  As a technology company, it seems risky to be optimistic, but Mark Zuckerburg is sure making a ton of money off of this IPO, so what else really matters? Right?

http://politicalhumor.about.com/od/politicalcartoons/ig/Political-Cartoons/Facebook-IPO.htm

Cartoon 1

During the George W. Bush Presidency, President Bush cut taxes for the wealthy in the masses.  As the economic recession is in its 3rd year, the gap between those who are considered rich and the poor is increasing. As the economy is currently in an expansionary monetary policy there is a larger money supply, but the rich continue to benefit from these tax cuts that Bush instilled.  Millionaires are getting richer, and the economy is struggling to dig itself out of the whole that was made in 2008. This cartoon artist believes that it might be time to change these tax cut policies and tax the rich more.

http://politicalhumor.about.com/od/politicalcartoons/ig/Political-Cartoons/Cutting-Him-Off.htm

Rick Moranis Satire

Rick Moranis's satirical take on the worldwide economy allows for a unique point of view on the current state of the economy.  Addressing the differences between the domestic and abroad economy, Moranis questions whether or not him using foreign items in his every day life is affecting everyone around him.  The idea that we are living in an economic time period where almost everyone knows someone who is struggling is a topic that is relatable to me, and I can understand the way that he struggles what he should be purchasing and where he should be purchasing these things from.  What is the opportunity cost of purchasing a coffee maker from target that was produced in china opposed to the local appliance shop down that street that makes their own? Our purchases affect those around us, and the economy is an important topic to consider in the upcoming election in November.

http://online.wsj.com/article/SB10001424052970204468004577165172588977482.html

Senate Approves Additions to the Federal Reserve Board

Last week the United States Senate approved two candidates that President Obama had selected for the Federal Reserve Board of Governors, bringing the board to a full seven members for the first time since 2006. In addition to setting interest rates based on the economy's condition, the Fed is also on of the main regulators of financial business, which is why these additions are somewhat politically controversial.  Many conservatives believing that there should be less government control do not agree with a stronger Board of Governors, which is why some Senators have been voting against these nominees for many months.  This Board of Governors will help aid the Federal Reserve Chairman Ben Bernanke on analyzing financial crisis', adjust interest rates to achieve a balanced economy in equilibrium.

http://www.nytimes.com/2012/05/18/business/senate-confirms-fed-board-nominees.html?_r=2&hp