By Daniel Touizer
March 25, 2010
The American economy has been suffering ever since the U.S. financial system nearly crashed in late 2008. The onset of the recession jeopardized the survival of American businesses, many of which had to declare bankruptcy. As a result, unemployment rates skyrocketed and almost 15 million workers have found themselves jobless throughout the months.
Although it seemed like the economy would never bounce back, the Commerce Department recently reported that the nation’s gross domestic product, the broadest measure of the nation’s economic activity, grew 5.9 percent in the fourth quarter. The report, which revealed the greatest enhancement in the U.S. economy in six years, signals hope for small business owners and the unemployed.
The statistics have economists predicting that the recession is behind us, with some thinking we probably left it in the summer. Even though it looks like there is hope for the future economy of America, the road to recovery is going to be hard and need a lot of work.
Central banks will need to keep their interest rates low in order to support the economy and American business. Also, health care decisions must be made that benefit and help support small businesses as the increasing cost of insurance is only making it more difficult for companies to stay afloat. The recently Senate-approved Job Creation Bill also provides a glimmer of hope for small business owners, as it means employers will receive a tax credit for hiring new workers.
Unfortunately, the recovery has been less apparent to the typical American as job losses have continued to spiral down, with the latest numbers showing that joblessness claims have gone up 12 percent in the last two weeks. Because it is difficult to create jobs overnight, the unemployed must be educated on affordable health insurance options. Many can’t afford the most expensive plans like COBRA, so as a result most of their unemployment benefits are lost to health insurance, giving them little money to spend on items that will help boost the economy. If companies can start seeing a surge in revenue and business owners can start hiring employees, the economy may find itself continuing to trend upwards.
Daniel Touizer is Founder and CEO of Cinergy Health.