U.S. Faces the Double Predicament of Unemployment and Inflation

Microsoft announced to cut down 5000 people; Goodyear announced to cut down 5,000 people, General Motors announced to cut down 47,000 people in the whole world; U.S. Department of Labor data show the number of people of applying for unemployment benefits is rising constantly. Generally speaking, the rising of unemployment rate should lead to the fact the price is reduced, but the wholesale price of U.S. is rising.

U.S. Department of Labor announced the total number of people that U.S.A. applied for unemployment benefits has already exceeded 5 million. The analysis that Federal Reserve announced is likewise frustrating. Unemployment rate of U.S.A. will keep the upward trend in 2009. Besides, the difficulty that the unemployed finds another job is increasing in U.S.A.

Gasoline and other energy products cost rise while unemployment rate rises. This causes the inflation pressure that can't expect.


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