Wednesday, October 20, 2010

More Jobs, More Housing

Interesting graph. There's a clear correlation between unemployment and housing starts. Lower the unemployment rate, higher the housing starts. Housing and employment booms usually start at tail ends of recessions when interest rates are low, but it's not happening this time around. Is it possible that the recession isn't really over, contrary to what many economists are saying?

Regardless, the key factor is to create jobs, and this means letting the private sector do exactly that, but the President Obama thinks that profligate government spending, raising taxes, and more regulation is the way to go. It's not.

For more on the aforementioned graph, check out this post at Calculated Risk.

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