Jobless America Threatens to Bring Us All Down With It

The coordinated attempt to rescue economies of developed nations – pumping billions of dollars of stimulus funds into banks and public-works projects – did not resolve the structural problems caused by massive imbalances. As unemployment, housing foreclosures and credit difficulties continue to mar the economic outlook, international cooperation for economic troubles has vanished, contends Jeremy Warner for the Telegraph. Many nations blame the world’s largest economy – the US. “There's no political appetite or will in the US for the long term entitlement reform and tax increases necessary to bring the deficit under control,” Warner writes. As dissatisfaction with government actions runs high, politicians will likely try protectionist measures and currency retaliation that erode rather than boost jobs. Decreasing tax revenues and government programs could increase debt, joblessness and uncertainty. Delays in paying its bills expand imbalances and create bubbles. Until the US reduces its debt, and begins to redress imbalances, the outlook for the global economy is troubling. – YaleGlobal