The White House went on record this Friday to assure the nation that the overall US economy is well on its way back to strength, with the year ahead having been earmarked for significantly increased job growth. However, there will still be significant challenges to face including the debt crisis in Europe and ongoing income equality concerns, according to the statement issued by Barack Obama’s Council of Economic Advisers.
“While actions taken to prevent a deeper recession and to strengthen the recovery have made a difference, the nation is still recovering from that profound crisis and the problems that led to it,” read an extract of the report.
Totaling and rather dizzying 440+ pages of content, the document represents the government’s roadmap for the US economy in 2012, including the way in which the administration will “recover, rebalance and rebuild” where necessary. And with sweeping echoes of the recent State of the Union Address made by President Obama, the document is primarily focused on a US that gives “everyone gets a fair shot” and tackles the problem of income inequality.
According to economists, one of the best ways of addressing the above concerns is with concerted efforts in favor of job creation. Last year saw some improvement, having added a further 1.8 million jobs to the US economy in what was heralded a promising step in the right direction.
However, in order to get the nation back to the same employment level of 2008, a further 5.6 million jobs are needed and this figure doesn’t take into account the growth in US population over the past three years.
The latest round of forecasts for the year ahead foresee approximately 2 million job creations over the course of 2012 – a significant improvement again, but still far from a return to strength and solidarity.
Among the various suggestions and initiatives covered by the report, the administration is calling for what it dubs a “manufacturing revival” and a respective increase in exports. President Obama visited a factory owned by Boeing toward the end of last week as a means by which to reaffirm his stances as an active promoted of manufacturing industries and US exports.
“Two years ago, I set a goal of doubling US exports over five years,” said Obama today by way of a press release. “Today, we’re on track to meet that goal ahead of schedule.”
However, the ongoing and escalating debt crisis in Europe threatens to derail much of the government’s efforts to boost manufacture and industry, as at least 20% of US goods exports and 40% of service exports are bought by European nations.
As such, the report admitted that a decent chunk of US recovery will depend on a fast and workable resolution in Europe.