Jobless claims reach new heights

The number of U.S. workers filing new claims for unemployment insurance unexpectedly rose to its highest level in close to six months, a fresh signal of a weak jobs market.

The number of U.S. workers filing new claims for unemployment insurance unexpectedly rose to its highest level in close to six months, a fresh signal of a weak jobs market.

The data comes two days after the Federal Reserve downgraded its assessment of the economy’s health and said it would take steps to ensure its support for the fragile economic recovery does not wane.

So, how should we fix this? Not with any stimulus. Here’s what one politician thought:

“It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now … Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.”

No, not Ronald Reagan. This quote is from John F. Kennedy. You may remember him as a Democratic president from the 60’s. Here’s another gem of his:

“Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.”

The stock market has responded to the jobless data, and not in a good way. Stocks have fallen, as the data indicates a weak labor market.

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Posted on August 12, 2010, in Job Search, Market Trends, Politics & The Economy, Taxes and tagged , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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