This morning the Labor Department released the U.S. Unemployment rate for August.  At 9.7% it is the highest rate seen since 1983.  The 9.7% rate represents a constant month to month increase in unemployment over the last sixteen months starting at 5.0% in April 2008, with the exception of a single month, July 2009. The Federal Government and Wall Street have downplayed the level of unemployment during the last few months stating it is a lagging indicator behind emerging economic growth.  Although it is a repeatedly proven reality in each recession during the last 100 years that reemployment lags a recovery, it can only be demonstrated to be true after the recovery has occurred and unemployment has dropped.  There is no proof our current recession is over, only positive projections by some economists, legislative, and administration officials (spin?).  We remain at significant risk that this recession will continue for some time, if for no other reason than the large numbers of pending defaults in Commercial Real Estate, Jumbo House, and Zero Interest Loans that will emerge in the next 18 months.

The central question becomes:   What to Do?  The Federal Government must implement the same solution used by families across the country,  Stop spending.

Current congressional  and administration goals to expand the size of the federal  government,  create  a new massive health care program, implement a Cap and Trade scheme,  and proposals for creating additional Stimulus and Bail Out packages will not resolve our unemployment situation, except in some unique situations, and only for short term periods.  Small businesses have been the only real source of employment growth in the U.S. for some time.   Unfortunately small businesses have no choice currently but to contract in response to government legislation, increasing taxation, and the chaos of uncertainty created by federal meddling.   We are in a slow downward spiral and many seem unaware, or worse, self serving and uncaring.