USA-Unemployment Rate

Unemployment is the number one thing in the minds of most economists and investors when it comes to the US these days. And according to the world's most influential bonds fund manager, Bill Gross there is no solution in sight. Bill Gross believes the new 'normal' unemployment rate will be 7% instead of 4%. Hence, the government should spend tens of billions of dollars on new infrastructure projects to put people to work and stimulate demand.
In his own words, "Current policies have specifically promoted consumption as opposed to investment. We need some type of government-oriented policy that promotes infrastructure, that promotes re-education, that promotes the green energy that is specifically directed as opposed to pushing money into the consumption hole." We must point out though that there is an underlying danger in this approach. Government spending on infrastructure might result in a lot of wasteful expenditure - not the best use of precious capital.