A recession double dip is the worst case scenario possible for the United States. Fears of that nightmare returned after the stock market’s big dip on Thursday, yet new unemployment numbers were released to calm those fears later on.
According to ABC News, recession double dip fears were settled after the unemployment rate was listed at 9.1, which is a slight improvement. Allegedly, payrolls expanded by 117,000 jobs in July, with an estimated 154,000 new jobs created during the month.
Job creation is at the heart of the economic debate, especially since conservatives and the Tea Party argue that higher taxes on the rich – a.k.a. “job creators” – will further damage the economy. Meanwhile, liberals attack the rich for not actually creating jobs, and criticize the president for not having a massive job program of his own.
If the unemployment numbers stay close to 10 percent, then a recession double dip will always be a plausible fear. What’s more, since these stats remain higher than they were under President Bush, it is a massive albatross around President Obama’s neck. Therefore, he will do well to advertise this slight improvement, especially to get the debt ceiling out of the headlines.
There are still massive fears on whether the debt ceiling compromise will make the economy worse or better. But considering how things have gone since 2008, a better hope would be that the economy doesn’t get catastrophically worse. Sudden improvement would be a miracle, yet unless unemployment gets better, then there is less wiggle room for such a miracle.
When the economy first collapsed in 2008, blame went to President Bush and helped doom Republican candidate John McCain. Yet although President Obama rose to victory as a result, a recession double dip can destroy him just as easily in 2012. As such, slightly better unemployment stats are great news for him, or at least not as bad as it could be.
Yet a lot of stock market dips, economic showdowns, and all too slow signs of recovery can take place over the next year. Therefore, President Obama will have to keep crossing his fingers for the forseeable future. However, the worst that can happen to him is losing in 2012, but a double dip recession has more lasting consequences for others.