Supply and Demand Cartoon

There will never be supply without demand. We have laws against illegal immigration and put a lot of effort in to try and stop it. Yet still there are so many in the USA, why? Because we demand them. No one wants to work the bad labor jobs with low pay, but the jobs need to be done for society to function. Illegal immigrants will gladly work to be able to live here and support their family. This is a perfect example of supply and demand.

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFhdcGdbM5n2OkBgwxEmvLFM2xhfLEcEWL0zYg_dn0ND430NllZU_6pXm54YiUQiH58GxGWtwoAMvtY9S8zeaeRsfAaRUQ8zK4qkNYt1Rcd7UD517DMVF5aWnf3znubT8bIJzlmECP7Nm_/s400/Cartoon+of+the+Day+3.25.09.jpg(sorry guys, on a mac dont know how to copy the picture with this one button mouse)

Interest Rate

The interest rate is going to increase steadily for the next few years. It is going to hurt the housing market and credit card use the most. It needs to be stopped through open market operations. The government needs to buy securities, through Expansionary. This will lead to a increase in the money supply and investment, but most importantly a decrease in the interest rate.

http://www.nytimes.com/2010/04/11/business/economy/11rates.html

DISCOUNT RATE DROP. Good or Bad??

The Federal Reserve dropped the discount rate to almost 0, trying to help people out of recession. Does it help more then it hurts? Legal aid groups depend on revenues from the Federal Reserve and will have to cut staffing by 20%. Helping people with the recession through this process will lead to higher unemployment and make the groups go into bankruptcy.

http://www.nytimes.com/2009/01/19/us/19legal.html

US Health Care Inflation

The US Health Care system inflation is going to outpace the 2010 salary increase. The trends are showing that they will increase 4 times as much as a person's average hours earnings. People will not be able to pay for healthcare, which will lead to a very unhealthy/ unsafe population and a recession. The government will need to increase the Federal Reserve so people will be able to loan more money to be able to afford it. But this will just cause more debt and for the country to go backwards. The government needs to find a way to solve this issue fast.

http://findarticles.com/p/articles/mi_m3495/is_11_54/ai_n42284585/

Unemployment

The unemployment rate stands at 9.7%, just below a 27 year high. Obama signed a bill to extend unemployment benefits, which incresed goverment spending without more income, leading to more debt. Obama needs to stop the excessive spending, and figure out a way to lower the debt without increasing taxes. We are in a recession and at risk of going into stagflation.

http://www.marketwatch.com/story/jobless-workers-to-get-extended-benefits-2010-04-16