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Fiscal Policy Macroeconomics Questions: Uncertainty Thesis

3.

Miami-Dade County and the city of Miami have for a number of years remained somewhat ahead of state and nationwide unemployment levels. But as the recession drags on into its 18th month, it is clear that Miami is no longer insulated from the patterns impacting the rest of the nation. Indeed, this last year has seen the unemployment rate in Miami reach heights unseen since the massive influx of immigrants which diluted the job market in the early 1980s. According to an article by Andron (2009), the jobless rate in Miami-Dade county had climbed to 10.6% by this June. The article by Andron explains that though there are signs of economic recovery afoot, cities such as Miami are experiencing a jobless lag based on a long stretch of economic stagnation. Accordingly, the article notes that in such modest recovery periods, "businesses usually are reluctant to step up hiring until they are sure things are looking up. And second, discouraged workers who have given up looking for a job often return to the market when they hear things are getting better. That can make unemployment look worse because those workers don't count as unemployed until they start actively seeking a job." (Andron, 1)

The outcome of this trend, whatever its implication, is to place Miami at the forefront of the labor crisis impacting state and nation as a whole. While Florida's overall unemployment rate had reached a directly parallel 10.6%, the national jobless rate is presently at 9.5%, which is up 3.9% from this time last year. (USDoL, 1) The alarming decline in employment is clear across all levels of governance as states such as Florida struggle in clear reflection of the broader crisis for American laborers.

Find information about labor market statistics of your community Miami, Florida over the last 3 years. Compare the labor market statistics of community of Miami, Florida to the same labor market statistics for the...

Write a one-page (single-spaced, Times Roman font 12) report on the state of the labor market in the community of Miami, Florida and provide policy recommendations for the city council.
4.

Presently, all evidence and indications from its own website are that the Federal Reserve is in the mode of constructing policy around the conditions produced by the global economic recession. A meeting held by the Committee of the Federal Reserve conducted across June 23rd and 24th would be reported in its minutes to have addressed a host of issues relating to the recent actions taken by the Fed in response to the collapse of so many of America's banks. Purchasing up bank-owned assets in a method which it claimed was constructed to help soften the blow of the economic meltdown, the Federal Reserve would during its most recent meeting meditate on some of the objections voiced to this approach.

Particularly, the minutes reported that "n important issue was whether the further increase in reserve balances that is likely to result from the Federal Reserve's already-announced program of asset purchases could lead banks to limit their lending and acquisition of securities in order to prevent an excessive decline in their capital ratios, size and composition." (FOMC, 3) The discussion was concluded with the finding that most banks were in a position of raising capital recently and that this practice would prevent the undesired effect.

Works Cited:

Andron, S. (2009). Jobless rate surges in Miami-Dade; 1 in 10 unemployed. The Miami Herald.

Mutikani, L. (2009). WRAPUP 2-U.S. consumer prices confirm inflation in check. Forbes.com.

United States Department of Labor (USDoL). (2009). Regional and State Employment and Unemployment Summary. Bureau of Labor Statistics. Online at http://www.bls.gov/news.release/laus.nr0.htm

Sources used in this document:
Works Cited:

Andron, S. (2009). Jobless rate surges in Miami-Dade; 1 in 10 unemployed. The Miami Herald.

Mutikani, L. (2009). WRAPUP 2-U.S. consumer prices confirm inflation in check. Forbes.com.

United States Department of Labor (USDoL). (2009). Regional and State Employment and Unemployment Summary. Bureau of Labor Statistics. Online at http://www.bls.gov/news.release/laus.nr0.htm
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