Will cash infusion help the US unemployed?
Published: 11 March, 2009, 09:29
TAGS: Crisis Chronicle, USA
The US State of Rhode Island is one of the worst hit by the economic meltdown in the US and unemployment. Despite one billion dollars provided by President Obama, questions remain about the efficiency of this measure.
Rates of bankruptcy and home repossessions are extremely high in Rhode Island. Many are suffering from gaps in their budgets, and pension schemes are vulnerable.
The problem with this state is that no one really knows why it’s been hit so hard. According to unemployment statistics, Rhode Island comes in second after the State of Michigan. Its problems are due to the collapse of the auto industry.
One man trying to make the best of things is Jimmy Underhill, who runs his own store. Even though the prices there are low, sales have been seriously affected by the crisis.
He admits a lot of people are trying to save money, so they don’t buy as much as they used to. “I have to stay hopeful that I’ll have enough money coming in to keep this place open,” Jimmy says.
He doesn’t believe the American president will be able to tackle the crisis any time soon.
While many people in Rhode Island are losing their jobs, fish store owner George Goulart doesn’t worry. The ‘Fish Doctor’ has been in business for 35 years and says owning a tropical fish store helps people to be happy in times of crisis.
“Most of them deal with selling a product. I deal with life,” he says, meaning people will always need beauty and an object of attachment.
While few remain optimistic, the unemployment rate in Rhode Island has hit a record thirty-year high. It fell into recession early and analysts predict it will take years to stabilize.
The state is receiving one billion dollars from the stimulus package signed last month by President Obama. Although the White House says the money given to the state will create or protect 12,000 jobs, the problem is that is a lot less than the number of jobs already lost.
10.03.2009, 22:00
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