US economy to collapse before something improves

The unemployment level in the United States has reached a record level recently. Over 500,000 Americans lost their jobs in November, about 1.5 million people were fired during six months of the outgoing year. The unemployment has reached the level of 6.7 percent which marked the highest point in 15 years, the US Department of Labor said.

Photo: US economy to collapse before something improves

US economy to collapse before something improves

US President elect Barack Obama believes that the situation will continue to aggravate in the near future. He said in a statement that the crisis, which had been formed in the USA for years, would most likely continue to worsen before something begins to improve.

"There are no quick or easy fixes to this crisis, which has been many years in the making, and it's likely to get worse before it gets better," Obama said.

However, Obama is optimistic about the future.

"This painful crisis also provides us with an opportunity to transform our economy, to improve the lives of ordinary people by rebuilding roads and modernizing schools for our children, investing in clean energy solutions to break our dependence on imported oil, and making an early downpayment on the long-term reforms that will grow and strengthen our economy for all Americans for years to come," he said in a statement.

Obama also unveiled a part of the plan to create 2.5 million jobs. He assured the Americans in his weekly radio address that the new administration would execute the biggest infrastructure development project in 50 years. The energy spending of governmental institutions is to be considerably reduced within the scope of the project.

In the meantime, the White House and the Congress have come to an agreement regarding the plan to rescue the national car industry.

Alas, the Detroit Three has practically nothing to hope for: the concerns will be able to receive $15 billion instead of the requested $34-billion bailout. According to experts’ estimates, $15 will be enough before March 2009. The new administration will have to use the time to develop additional measures to support the national car industry. A special expert group will be set up to supervise the targeted spending.