Is the Federal Government directly responsible for America's unemployment rate?

I think we’ve come to a point in society where technology has replaced a lot of manual labor required jobs. I don’t believe its the federal government. I think for the most part the government still represent what most people are still voting for. It’s also true however, that topics in society that are most important are over looked by a disarrayed youth. How do I know? Well I’m 23, in college and I’d say about 5% of my buddies know about political/current affairs in the U.S.A. I think my generation in particular is one of the most confused generations ever. We don’t know if we were lied to about 9/11. We don’t know if the war was justified. We finally get a president who received more than half the votes but buyers confidence drops, and he pushes the emergency button and bails the huge industries in America to prevent a straight up kaboom of a crash into a depression (at least he slowed the depression to something more of a simmer as opposed to a straight up boil) We’re definitely in a transition period in society. Futhermore, we can’t blame the government. Aren’t there those who snarl at the idea of government intervention pertaining to business? Isn’t Le Se Faire the creedo of all businessmen? So of course they have the right to have outsourced for cheaper labor. America was built on cheap labor/greed. It’s no ones fault, its just the way of progress. Life is a sacrifice.

The flight of production from the US to developing nations is an inevitable result of the economics of production.

Economies have to specialise as they develop. The US simply can not compete with China in terms of manufacturing costs, for example. The issue of unemployment is really one of education; many of those who are unemployed should ideally have been better-educated, but the jobs were originally there in manufacturing. They’re not now, and the workforce needs to retool for the 21st century .

No, the government is not totally responsible for the high unemployment rate.

The government can influence slightly, but does not establish demand in the labor market. We have a very fluid system in the labor market.

I think because of globalization, the US will continue to face a lower standard of living. Not until all of the developing countries reach a higher standard of living will jobs stop flowing out of this country.
We need to admit this is happening and stop pretending that all we have is limitless. Unless you are okay with having less and less every year, have the courage to make tough choices about immigration and education. We need to stop churning out so many students with no math skills and with majors that aren’t competitive. Do you really think everyone in India wants to study Engineering? They don’t, but they do, because they know that’s what they have to do to get a decent job.

If anyone is responsible for factories re locating to the developing world it is the American Consumer. Consumers always want lower prices and they don’t care too much where goods are made as long as the quality is reasonable. When goods can be made cheaper abroad they they will be made abroad and expecting the government to protect American jobs from market forces is unrealistic.

I believe that standards of living, which have been increasing for many decades now for the majority of people living in the West, are soon to decline. Standards of living in the developing world almost by definition will continue to increase but a point will be reached when demand for diminishing natural resources is going to push commodity prices up much faster than the increase in wages.

All of the above answer are just great and each answer gives a different perspective for Americas failing economy. Advancing technology is a key point and well-taken. Under education is also a valid point.

Yes, America wants the best at the lowest possible price and today that is just not possible, unless its made in a foreign country with cheap labor.

I understand this, but it does not mean I have to like it…...right?

No, it’s entirely the fault of the American Worker who insists on a higher wage than any other country, plus ever increasing paid benefits, plus OSHA protections in the workplace; not to mention zero child workers allowed.

I blame Americans more than I blame the American government. I do think our government should level the playing field regarding exports and imports, meaning if China or Japan taxes us on our exports to their countries or requires us to employ a certain percentage of their citizens we should do the same when those countries want to export to us.

But, America became very lazy and greedy in the 80’s and 90’s in my opinion, and that is what hurt us most. American car manufacturers were making gobs of money, cars were less safe than many of the imports, and much lower quality. Eventually Americans wised up and the car manufacturers got what they deserved, huge losses in market share. the unions negotiated ridiculous benefits, and now that greed is coming back to haunt their members.

Some industries had huge gains, like technology in the late 80’s and 90’s,and now have levelled off. It would be ridiculous to assume an upward growth that was so extreme would be sustained.

Housng bubble burst. Well, people were buying houses they could not afford, because they were willing to borrow ridiculous amounts through ridiculous loans. Private business and individuals are the ones most to blame in my opinion for this. Anyway, people were buying real estate like crazy, including for investment, properties to flip or rent or buy as a second home. Now it is like a domino effect…people lose some jobs, foreclosures happen, some mortgages hit the end of their ARMs or interest only terms, property prices started to fall, people wanted to dump their investments, blah blah blah. Now there is a glut of housing in many marets, because no one was living in the houses to begin with. Everyone had been building and buying because they thought they couldn’t lose.

Only 40% of Americans pay off their credit catds in full every month. That means the majority of people do not live within their means, or don’t understand what 22% interest means I guess? If you understand why would you ever pay it except in extreme emergencies?

I guess my answer is there are many reasns unemployment is high.

No, it’s American companies interested in short-term profits while neglecting long-term investments to compete on a global level. Just take the focus on gas guzzling SUVs and pickup trucks versus investing in energy efficient technology.