(DURHAM) -- The Dow plunged more than 500 points Thursday and stock prices were slammed with the worst drop since the height of the financial crisis in 2008. Duke University economist, Dr. Michael Munger, said the U.S. government's inability to exude any confidence in the economy was a major factor in Thursday's massive sell-off on Wall Street.

"If they hadn't raised the debt ceiling it would be even worse but the deal that they came up with to solve the debt ceiling crisis did so little to address the problem of the debt that it precipitated the catastrophe," said Munger.

An economic report released Friday morning shows hiring picked up slightly in July and the U.S. unemployment rate dipped to 9.1 percent, an optimistic sign after the worst day on Wall Street in nearly three years.