August 24th, 2009 by Reed Allmand 
According to an article in the Star-Telegram, the number of first-time claims for unemployment benefits rose unexpectedly last week to a seasonally adjusted 576,000. Some analysts had hoped that first-time claims for unemployment benefits would decrease this week; but many employers are still shedding jobs.
The article said:
“Many economists expect the economy to grow at a modest pace in the second half of this year, bringing an end to the longest recession since World War II. But jobs are likely to remain scarce and many analysts worry that persistently high unemployment could cause consumers to hold back on spending, threatening a recovery.”
Consumers aren’t just scared they’re terrified, with many hoarding as much cash as they can, which never bodes well for an economy fueled by consumer spending. Right now we’re in a vicious cycle of credit contraction, consumer contraction and employer job losses. Each of these factors feed the other in a kind of economic dominos, as one goes done so does the other. Already, 6.7 million job losses have occurred since the recession began and many of the unemployed are still unable to find work. If you include the federal emergency program, the total number of people continuing to receive unemployment benefits stands at 9.18 million Americans. With numbers like that, those with jobs don’t want to spend, which in turn creates an environment where job losses must be implemented if companies want to survive. And so the cycle continues.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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