What is the basis for future U.S. economic support

State Department of Labor announced on November 2 of the unemployment index in October rose by a substantial 0.5 percent, the U.S. unemployment rate reached 5.4 percent. Rise in the unemployment rate to the U.S. consumer confidence hit in the first capsule of the unemployed in the shy, shrinking consumption. Although much of the adverse impact is obvious, but the negative effect on consumption is not the most serious, and the unemployed accounted for 94.6 percent of the population employed in the fight against consumer confidence is on the economic recovery constitute the most seriously affected. The unemployment rate rose to the employment base hit consumer confidence, first of all from the "effect of concern." When the work of the people still have to see their own neighbors, relatives and friends of people unemployed, they will subconsciously worried about their jobs or incomes fall, also tighten their belts in order to reduce consumption. In fact, employment income groups fell, no longer just a concern, has become a grim reality. Statistics have shown that in the late 1990s, the U.S. consumer income growth has been higher than the inflation rate of 2.5 percent or so, and this year is worse than the drop to less than 1%. The slowdown in wage growth, indicates that consumption will gradually lose the support of the role of economic development. This was followed by reducing subsidies. For a long time, a fixed annual salary subsidies in the United States outside of the management staff of the revenue growth of a larger proportion, but "9? 11" terrorist attacks before falling trend, the situation is even worse. Many companies fell due to profit will be reduced or even completely canceled for many years to an employee of the subsidies. The latest survey shows that 68% of companies have varying degrees of reduced subsidies to employees, 22% of the companies simply cancel the subsidies. The decline in the level of subsidies as a whole, the employment of groups of consumption is bound to have a negative impact. Third, the phase of economic growth, over-time consumers are also a source of income. Now, because of under-employed businesses, working fewer and fewer opportunities for overtime, statistics show that in October, the total hours worked fell by 1.6 percent, since 1982, is the largest single-month decline. Consumers should be pleased that although the data are not many, they are not, such as the survey shows that almost all large enterprises this year and next year did not reduce the merit pay plan as a whole is expected to pay contributions will remain at the consumer's total income to 3% And 4%. In the period of economic downturn, merit pay is to enhance the morale of the employees of one of the important tools. The majority of U.S. economists forecast in the spring of 2002 the U.S. unemployment rate may rise further to 6.5% to 7%, the unemployment rate continues to rise and its impact on employment and psychological aspects, there will be a further blow to the consumer.