Unemployment, High Prices, and Hope

No doubt jobs are hard to find and food prices continue to swing wildly, but the question still remains, “Is there hope?”

Most certainly there is something to hope for. First of all, the U.S. economy is in a better position that a few years ago. Just this second week of June, the trade deficit improved because imports decreased and America sold more overseas.

However, before you start the fireworks, the reality is that the economy is improving ever so slowly. The number of US citizens seeking unemployment benefits is pegged at 427,000. Ideally, it should be below 400,000.

The trade deficit can be explained as a temporary adjustment because of the earthquake in Japan. US companies were not able to import anything from Japan, although this situation should revert in the next few months.

The good news is that in May, there were 54,000 new jobs on the market. The Bank of America Merrill Lynch predicts this figure to increase to 150,000 a month within the year. US companies are selling more telecommunications hardware, computers, and heavy machinery to the international market. America is rebounding. It’s just taking its time.