Lower than Expected Open for Stocks
Stocks dropped again yesterday despite some early indication that investors would push toward some positive results. The worst hit index was the NASDAQ, which dropped 2.04 percent (45.27 points). The S&P 500 (1.35 percent, 14.41 points) and Dow Jones (1.16 percent, 115.48 points) also dropped significantly during the day.
The continued fall on Wall Street has pushed markets down to 7-month lows. Despite some expectations of a better start today investors still sent share prices lower in the first hour of trading. Stocks should look to recover later in the morning, but it is unclear how that will pan out for the rest of the day.
According to Bloomberg News, there was some optimism during premarket hours that Fed chairman Bernanke’s talk of an intact recovery could act as a boost. Unfortunately, despite what Bernanke called a “moderate” recovery, jobs are expected to lag far behind with unemployment remaining high indefinitely.
This highlights precisely what is wrong with America’s economic leadership. Both parties have talked at length about the so-called “jobless recovery.” This completely ignores the fact that workers are the backbone of the economy, and without workers there is no recovery. Our Wall Street-centered mindset has led economic policy advisors to highlight profit margins instead of actual indicators like employment.
The United States might be able to “recover” without strong job growth, but we can definitely recover with strong job growth. Instead of hoping for the best, we should be planning for it with jobs programs that are certified to create the growth and stability that finance has failed to provide.
According to CNNMoney.com, U.S. employers interviewed by Manpower Inc. have stated their intention to add jobs for the third straight fiscal quarter.
However, they do not necessarily intend to add permanent jobs or well-benefited jobs. There is nothing more important to an economy than keeping people employed in sustainable and stable positions, and the United States cannot fix its endemic problems without first tackling that hurdle.
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