Tim Geithner press conference last Friday revealed that the US economy is getting stronger, all the signs are pointing towards gradual economic acceleration and with that we should see more people going back to work. The USA has more than a million private job created during this recovery, which is quicker than the previous two recoveries.
Are we on a up cycle?
The economy is getting stronger, most investors are bullish and have a positive outlook for 2011. The problem, however, is this expansion has hit Wall street, but it hasn’t hit the average worker on main street.
How can we have an accelerated boom recovery when most American are still muddied in recession. Unemployment is still at 9%, housing prices are still going down, which are the major assets for most people in this country. People are still worried about the dept load that they are carrying on their backs. Most Americans don’t feel this is a recovery yet! Consumer confidence is conversely down.
Wall street is doing better, corporation are earning more money, at some point this should translate into more hiring of more workers.
The outlook for jobs in 2011 should look pretty good as productivity rises. However, we have not seen this yet, and so far it has been a very slow recovery for workers.
How long should we wait before companies start hiring again?
Corporations are sitting on almost 2 trillion dollars of cash. The problem is they are not going to hire if there’s no customers in the USA for their goods and services.
I believe one of the major issues with companies not hiring is the fear of regulation, and concerned about the unknown in Obama’s administration.