MONEY MATTERS

The policy makers of the United States and Europe have been slashing down on spending and reducing deficits. It was thought by them that this would help in restoring confidence and help in economic revival. In Europe, nations like Greece and Ireland have imposed savage cuts and in the U.S. the state and local governments have slashed their budgets. But even then there is no surge in the confidence level and businesses and consumers are more concerned about the lack of customers and jobs. There has been no growth in the economy and unemployment remains high. During normal times the production capacity in the American market raises by 2-3% every year. But now the production capacity is 5% lower than what it was in December 2007. The result of budget cutting has lead to a weaker economy which is hurting the future as well as the present. The public cutting has not left the education system there are thousands of school teachers who are laid off. The economy needs a great push now and there is no time to wait for restoration in the future as the unemployed are fast becoming unemployable.

Filed under: Uncategorized by SAJ