President Obama states now that the government spending cuts that took effect in March are hurting the US economy. He believes that they are slowing down our growth as a nation by throwing people out of work.
The spending cuts came about as Obama and Republicans in Congress failed to agree on plans for taxes and spending. This ultimately led to automatic cuts for government programs and furloughs for some government employees. Speaking of which, 1,500 air traffic controllers were laid off each day last week until Congress reversed the action as flight delays mounted.
The President has called on Congress in the past to reach an agreement to end the country’s national debt through certain programs but differences over what financial policies the government should adopt have been in the way of a resolution.
New reports have proved that the U.S. economy is slowly improving in some areas. For example, the housing market is strengthening and there is a steady decline in foreclosures. Even owners of new and small businesses also report increasing confidence.
But the U.S. economy is still suffering by high unemployment rates, which is expected to stay at 7.6% this month. Reports show that 4 out of 10 recent college graduates are underemployed-taking jobs that do not require the degrees they earned and paid for.
All this is likely to be part of discussions as the U.S. central bank assesses the economy and decides how much they will try to stimulate it with low interest rates and other strategies.