By Li Bin chen
United States is going through a serious financial and economic crisis. The crisis had gone so severe that there are millions of jobs being cut. As of November, 2008, employers overall have announced job cuts of over 110,000 employees. With this amount of job cuts, current employees are uncertain of their future with unemployment rate keep climbing. It becomes hard for people to have a lot of optimism regarding this labor market. To response to the crisis, U.S. President Barack Obama's spokesman, Robert Gibbs, told reporters that the president "would do everything in his power to ensure the financial system does not collapse". That is why President Obama introduces his stimulus plan for the hope that it will boost up the economy by increasing consumption.
As the turmoil of U.S financial system spread globally, global recession got worse; companies are required to cut back on their employees in order to lower their cost structure. This is a period that determines which firm will survive and which firm will be eliminate. That is why during the past year, there had been a lot of merger and acquisition happening where large firms are trying to stabilize their foundation. This is a true example of survival of the fittest.
Despite U.S government injecting massive amount of government funds into the U.S banking systems, other major U.S industry and major industrialized countries, the economic crisis is spreading rapidly from the financial sector to the broader economy and affecting basic production. With consumer saving their money and withdrawal from investment, weak earnings were report from major firms around the globe. Massive job cuts were occurring as United States is entering what some economist had call the recession stage while other more pessimistic economic said the United Stated had entered into a depression with unemployment rate continue to rise. This is the highest unemployment rate United States had ever experience since the Great Depression.
As the turmoil of U.S financial system spread globally, global recession got worse; companies are required to cut back on their employees in order to lower their cost structure. This is a period that determines which firm will survive and which firm will be eliminate. That is why during the past year, there had been a lot of merger and acquisition happening where large firms are trying to stabilize their foundation. This is a true example of survival of the fittest.
Despite U.S government injecting massive amount of government funds into the U.S banking systems, other major U.S industry and major industrialized countries, the economic crisis is spreading rapidly from the financial sector to the broader economy and affecting basic production. With consumer saving their money and withdrawal from investment, weak earnings were report from major firms around the globe. Massive job cuts were occurring as United States is entering what some economist had call the recession stage while other more pessimistic economic said the United Stated had entered into a depression with unemployment rate continue to rise. This is the highest unemployment rate United States had ever experience since the Great Depression.
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