The U.S. economy appears to be headed for another meltdown. The unemployment rate rose to 9.2 percent in June, the highest it’s been since January, prompting the Dow to take a 1.2 percent slide which translates into a loss of 151 points. Prior to today, the Dow fell from a high of 12,807 on May 2nd to a low of 11,897 on June 15. The Dow rebounded briefly from June 24 to July 7 only to fall to 12,505 on July 11; 300 points lower than the two month high.
This does not translate into good news. The Dow is falling, job growth is nonexistent, and the unemployment rate is up, but that’s not the worst of the economic news. After December 2011, extended unemployment benefits expire. According to The Lookout, the loss of unemployment benefits will remove $37 billion from the economy. Almost 20 percent of personal income is “now provided by the government,” reports the New York Times.