This article discusses November's recent drop in the unemployment rate to 8.6%, down from 9% most of the year. However, while the article focuses on the extension of unemployment benefits, a measure that has seemed effective in stimulating the economy, it also points to a more pessimistic view when talking about factors from abroad that threaten this decrease in the unemployment rate. Foremost is the euro zone crisis which could drastically impact the world economy if any country were to default. We discussed exchange rates and devaluation of currency in class noting that foreign markets can have a large impact on America's economy. In a world where European and American markets are intertwined an imploding of Greece or Italy's economy could be detrimental to trade, stocks, and the debt crisis. Expansionary efforts have begun in an order to contain the crisis to the European economy through an increase of liquidity in European banks. Continued effort by the U.S. and Europe continues, but it's probably safe to say we shouldn't be too optimistic about the unemployment rate.
http://www.nytimes.com/2011/12/03/business/economy/us-adds-120000-jobs-unemployment-drops-to-8-6.html?ref=economy
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