Just when the U.S. economy seemed to be gaining steam, a report from the Commerce Department came howling across the frozen economic tundra noting that the 2012 Gross Domestic Product contracted 0.1 percent in the year’s final quarter. Big whoop! It is, I’m afraid a big whoop. It’s the first setback to a slow economic recovery since 2009.
On top of that, a lower defense budget caused many defense contractors to start laying off workers in anticipation of the fiscal cliff (which was temporarily averted) and the likelihood of sequestration.
Sequestration, if it is realized in the final budget battle will demand more defense department cuts and across the board cuts to every segment of the federal government. (It’s a concern that new Secretary of Defense Chuck Hagel will have to contend with when he takes over.)
Payrolls were up 157,000 for the first month of 2013, while the unemployment rate edged higher to 7.9 percent. Economists were hoping for 160,000 new jobs created with the unemployment rate holding steady at 7.8 percent.
Oh, rising gas price will continue to climb another 10 to 20 cents a gallon, according to reports last week. Cause? Refineries have cut production of winter blend. Collusion, anyone?
With all of the bad news, there was a mixed message that surfaced with Reuters reporting that the Euro was at a 14-month high against the U.S. dollar. How is that positive? Well, because most nation’s within the European Union also make up our largest trading block. Therefore, with a weak U.S. dollar, our goods will be extremely attractive to that marketplace.
There is a downside of course, with a weakened dollar, goods from China, Japan and Europe will be more expensive for Americans.
How does that impact Brainerd, Baxter and the rest of Crow Wing County? It will cause a spike in goods from other nations that are sold in area retail outlets. It also poses a threat to our national recovery from the Great Recession.
While we would prefer a strong dollar to buy the essentials from other nations, we are faced with growing inflation on most fronts.
Most county residents have been experiencing the inflationary effects at the pump and in the aisles of local grocers.
Keith Hansen
Comments (10)
Add commentObama says
that this is untrue. Southie and her ilk will agree!
Mission accomplished
and the road has been paved for Hilary in 2016 !
I think Obummer
plans to get the law changed to allow him another term or he'll have Meeshell run with him as vice pres........
Keith
There you go again upsetting the wagon participants.
Can you write something on the MN taxes being proposed and the part how Mark Dayton wants to tax people that have second homes and may only be in MN 2-3 months a year.
He wants to tax them income tax for the time they are here.
you know, the people that have homes on Gull Lake.
Also, please write about the gun program the state democrats are proposing. Including gun registration and coming into homes to check where you have them located.
How will John Ward vote on these issues? I think he is on the safety committee. Protecting yourself is not a consideration.
You got what you wanted
So all the Keiths who scream for cuts in government spending - that kicked in, or threatened to, and unemployment went up (barely). The government spends money on things that come from workers. So which way do you want it? I know - cut everything they buy that isn't made in USA.
You got what you wanted
So all the Keiths who scream for cuts in government spending - that kicked in, or threatened to, and unemployment went up (barely). The government spends money on things that come from workers. So which way do you want it? I know - cut everything they buy that isn't made in USA.
WOW!!
Another enabler with their head in the sand, unbelievable!!
paul bunyan gf
Please explain. What cuts have kicked in?
"The government spends money on things that comes from workers". ---what is that? what does that mean?
Inquiring minds want to know.
with growing inflation on most fronts.....
Fortunately I got a nice raise in my social security check to keep me even. Except for food. And for fuel.
frank
You forgot about the increase in medicare as well as food, gas, and more. We also had to obtain new health care supplement as our previous policy was stopped. By that I mean the medicare suplement plan was cancelled.
We had to get a new drug coverage and a new supplement plan.
So, with the increase in SS payment and the increase in medicare and health supplements, not so good as it is negative.
One good thing is that we can keep our same insurance and DR. Wow.