This blog is for discussing issues in our complex global economy.
Economy grew 5.9% in fourth quarter
The 22% rise in exports definately contributed to a higher GDP. Other countries want our goods now that our dollar means less making our exports cheaper.
What do they mean, though, that if the Central Bank keeps the interest rates low then it will support the economy? Do they mean that interest rates on saving would stay low causing people to spend or do they mean interest rates for borrowing should stay low so people will buy houses and cars and such? I am not sure on this one.
I like the point the author made about private businesses. In order for our economy to keep growing steadily there has to be some growth and spending in the private sector (new businesses, new jobs, new projects) and not just in the governmental sector. Looks like the government is doing a decent job of cutting back although I am not really following the news close enough to know what those cutbacks are effecting.
Well, hopefully we will fool the economists and have a larger increase than 3.1% as projected. And hopefully we’ll see unemployment dip down a bit further too. I agree with the author that it is harder to see this increase at a more local level. As he mentioned, states and local governments cut spending at a 2% rate, but it seems much higher in California with all of our education cuts. It’s a real bummer that even though we are technically out of the recession, that issues like unemployment are still barely making any progress towards a full recovery. I wonder how much worse it would be if the recession continued through the end of the year, instead of ending in the summer on 09 as stated here.
I too am a bit unsure about lower interest rate comment in regards to the Central Bank.
I found it interesting how the economists viewpoint is not as optomistic as I thought it would be. There needs to be an increase in unemployment or else we will be back to square one in the recession. As for the pojected increase, there needs to be a larger increase than the one the economists estimated as well.
It was very encouraging to hear that the conomy may becoming out of the recession and that the GDP had grown so much. I was a little disappointed to hear about the unemployment rate not coming back down though. Even if the economy isn’t technically in a recession anymore I feel like things won’t get much better if people still can’t get jobs.
It’s true that U.S. Economy is gaining back but still
with this enormous number of unemployed people, the recession can’t be said it’s over. To prevent better money circulation, people need to spend.
Once the unemployment rate is back to normal, the people should be able to spend more. That is the guarantee the economy is back to normal.
While it is disappointing to see the unemployment rate hasn’t improved, it was encouraging to see the growth of the GDP and the light at the end of the tunnel may be visible. The economy can’t get better with the unemployment rate where it is at right now but there are improvements being made in attempt to pull our economy out of the gutter.
It is really nice to read that first of all the GDP grew. Second of all it grew by 5.9% and third of all this was a larger growth than what was expected. Although this looks really good though people always need to keep in mind that economists are only making educated guesses. This means that what they are saying is not fact and to not get all worked up by the assumptions that they make. Life is unpredictable and we always need to keep that in mind. We may expect one thing and it could actually end in a completely different way. Be prepared.
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