The gloomy statistics are “a wake-up call,” according to Heidi Shierholz, an economist at the left-leaning Economic Policy Institute. “Unless Congress authorizes substantial additional spending for job creation, unemployment will remain elevated for years to come,” Shierholz said in a statement responding to the Labor report.So, Democrats in Congress have every right to worry. The only way to turn this bad economy around is to return the unspent stimulus funds. Drastically reduce taxes and spending. That is the way to encourage economic recovery. Unfortunately, this administration and Congress won't do any of those, instead they will increase spending and the resultant debt, which will strangle any economic growth that might result by siphoning ever more money from the private sector.
Senate Majority Leader Harry Reid (D-Nev.) on Tuesday announced to Senate Democrats that he will take up an initiative on jobs, though he did not offer specifics. Reid is facing a tough reelection battle himself; Nevada has been hard hit by the recession and housing crisis.
In the House, Democratic leaders have resisted suggestions for a second stimulus, but they are working on a variety of proposals they believe would create new jobs, including a program that provides small businesses with new loans.
Next November I predict that the Democrats will lose at least 100 seats in the House and 16-18 in the Senate...that of course, is only if unemployment doesn't rise above 12%. If it goes higher, then losses will be much, much worse. On the other hand, I don't think the GOP will gain many of those seats. I predict that 3rd party candidates and independents will the be true winners.