Teens Face Tough Job Market For Summer Jobs

This year teens will see a decline in summer employment opportunities. Oil prices are increasing, home sales are decreasing, and retail sales are falling. About half of business owners said they will not be seeking seasonal help this year. Also adding to the problem is the rise in the older generation seeking traditional teen employment including food and retail. Typically it is obviously smarter to hire the older generation due to their experience in the working world and they will not leave to go back to school. This is likely to become a huge issue because an increasing amount of parents are sitting their teens down to acknowledge  their financial struggle and how the teens will now have to contribute more for fun summer activities. This will also affect the economy because teens will be spending less this summer. Now this is not true for all, but for a growing percentage. So teens looking for jobs this summer, should probably start now if they want any luck in finding a job. 

Dollar Continues Record Decline

Today, Friday, March 07, 2008, the dollar sank to an all time low compared to the yen, euro, and pound. For years there has been a decreasing value of the dollar against foreign monetary units. Partly this is due to the largest job cuts in the past five years. In February about 63,000 jobs were cut by businesses. Employers are starting to pull back due to an uncertain future. On Wednesday the dollar fell from 103.09 yen to 101.99 yen. Currently, it has been at a three year low. The Euro also increased to a record-breaking rise at a set price of $1.5463. Some Europeans are worried about a possible inflation due to the rising euro. European business owners are starting to the see the affects from the U.S. buyers that are now viewing the European goods as expensive. The British pound topped off at $2.0185. This is particularly due to a steady high interest rate set by the banks. Economists are seeing that lower interest rates can help an economy, but will hurt the currency. People are now looking to transfer funds to countries where they can obtain a higher return.
This may be a factor in traveling also. When travelers see that the exchange rates in some of the popular travel destinations, they may turn away to a new destination. I know I would. France seems great, but it takes a lot more saving up to do than visiting somewhere else where the dollar is worth more. This could hurt countries', with a smaller dollar worth, revenue from tourism. I'm not sure exactly how the interest rates affect currency, any help? I see that high interest rates would result in less loans, which would mean less purchasing... I think. Also, any ideas what has happened over the last three years that has created such a record low?

Interest rates: The new conundrum

The Fed has lowered short-term interest rates this year, but longer-term bond yields have risen. This is confusing Wall Street. Alan Greenspan is acknowledging the fact that the 10-year U.S. Treasury and 30-year mortgages remained low even as the Fed jacked its key short-term federal funds rate from 1% to 4.5%. Overall, bond yields rose more in one month when the Fed was cutting rates, than during two years when the Fed boosted rates. Some people are now believing that this could prevent or slow down an economic "recession".

Basically, no one knows what is going to happen in the rates over the next month. There is suspicion that the widening gaps between short and long term loans, may help with incentives for banks to give long term loans. Though, others think that cuts in rates are just an overreaction that will result in inflation. I think that a cut in rates will help home buyers, but prices of houses also are a problem. Though, finding a low rate is key. I do not know too much on that subject, buy wouldn't they want a lower rate on short term loans, because they will get their money faster??

Article: A recession of global dimensions?

http://money.cnn.com/2008/01/21/news/economy/recession_global_dimensions.fortune/index.htm?postversion=2008012213

This fits directly with what we have been talking about in class. We (the U.S.) are worried about job scarcity here, and many jobs are being created abroad. This is creating an increase in the unemployment rate. It basically is jobs are not being created here, which is what we need. Something to watch in the future.

The article also discusses the fact that in the past decade or so Americans have been spending money like crazy, while the rest of the world has been saving by the billions. Now we find ourselves borrowing their money to pay ridiculous prices for good and things we need, such as houses. Basically, if everyone else didn't save their money for us we would be in pretty bad shape now.

A great point was also made that at one time America influenced the world economy and now it is turning around where we are influenced by the world. It is a fact that I do not believe everyone has grasped quite yet and is possibly key for success.