Towards a slow and painful recovery.

Those desperate for some positive news on the economic front in the United States have something to cheer about. For the first time in nearly fifteen months, the U.S. unemployment rate fell by a smart margin, indicating a slow and painful movement towards recovery. Provided, of course, the relative data as presented in surveys carried out by Bloomberg and others is accurate and reliable.

One of the most important aspects of the current crisis is the issue of credibility of the institutions that were considered above reproach, and totally reliable. As it transpired later, many of these institutions were found sorely wanting in competence, as well as integrity.

The optimism about the current situation is mainly on account of the fact that job losses that were supposedly estimated to be in the region of approximately 325,000, turned out to be only around 247,000. It is not clear if the estimates were accurate or there is a real improvement in the ground level situation.

Some of the areas where job losses occurred in good numbers are the financial services, the construction sector, and the hospitality industry, while the auto industry added several thousand jobs in the otherwise cloudy scenario.

It remains to be seen, however, as to when and at what rate consumer spending would improve. That would be a key indicator of consumer confidence, as well as availability of disposable incomes. The economic recovery chain does not appear to be consistently strong throughout. There are weak points that could easily pull the positives back to square one.

If the American economy is really on the mend, it is definitely not at a pace that many fondly look forward to.

Contradictory signals of American economic recovery.

Is the U.S. economy on the mend? Are things looking up? Is the worst over for the American economy? If one were to go by the media reports of increased public confidence in the U.S. businesses, a reported surge in the U.S. home sales, as reported by Bloomberg, and such other reports, then it would appear that the dark clouds of recession are giving way to an emerging blue sky.

However, reports emanating from Associated Press that the U.S. Postal authorities are seriously considering the shutting down of hundreds of post offices across the country, in view of the financial distress occasioned by the falling demand for postal services, and the increasing cost of running them.

The primary blame for the predicament of the post office system is put on the Internet which has steadily weaned away consumers from using postal services, by offering a cheaper and faster way of communication via the email. Never mind the adverse affects on the users’ writing skills, the email still scores over its traditional counterpart, because of its sheer convenience. Another factor that has reportedly hit the postal services hard is the fall in the advertisement revenues.

The Government Accountability Office is seized of the matter, and has already targeted the postal services as being a ‘troubled agency’, that would necessitate major structural changes in the way it does business. All aspects of its functioning would be put under the scanner like the delivery schedules, employee remuneration, etc.

It is not known how many jobs would be eventually lost in the above exercise. One thing is for certain. American communities across the length and breadth of the country will soon wake up to a new look postal service, that has served them faithfully for well over two centuries.