America’s Unemployment Misery
Americans will suffer the misery of structural unemployment well above the traditional average of 5 percent if Seattle is any example of more change to expect with the Obama administration.
The problem of Seattle’s unemployment rate stuck near the national average of 9 percent – higher than Barack Obama’s failed promise for an 8-percent upper limit – is compounded by a foreseeable housing bust in the city: people are less flexible to pursue available jobs when saddled with mortgage debt worth more than their homes.
But home-price data reveals the potential for more misery with Barack Obama’s economic failure.
Home-Price Ratios at Bubble Levels
In December The New York Times listed the home price-to-rent ratio in Seattle as 27.3 and said a good indication of a bubble is a ratio above 20.
Additionally, September’s price-to-income ratio remained at a bubble level of 5.7 in Seattle. Despite the national price-to-income ratio falling in the same month to 1.6, matching the lowest level in the nearly four decades the data have been collected, economists expect home prices to fall a further 5 to 10 percent nationally, according to The Wall Street Journal.
Tradition to Succeed
Barack Obama continues in his effort to change America. But the strength of the Tea Party movement in the recent midterm elections is also an example of deep dissatisfaction among voters who want a return to country’s tradition of economic success.
They’ll again have an opportunity to deliver soon, with a 2012 election allowing them to choose a volunteer for president who has the economic competence and character most likely to effect safety and happiness.