Testimonials for Economy

We are seeing the first signs that the US economy is showing growth. Though US gross domestic production remained flat in its August 2010 report, other economic gauges are showing that the US economy is increasing production. In it’s Beige Book report released on September the 8th the US Commerce Department said that tourism, agriculture, consumer spending, non-financial services and transportation numbers expanded while manufacturing eased. Most of these industries were in decline through the summer and now are showing signs of increased production. The real estate industry numbers were not as optimistic. As a result of the expiration of

I have been thinking of a good analysis for our economy. Imagine if you were told 2 years ago that you had cancer and needed emergency surgery to live. After the surgery the doctors told you they successfully removed the cancer, but there were several infections that will remain and you need to prepare for a long, slow recovery. I feel the same about the US economy. We are past the bad stuff, but recovery will take time. One of the “band aids” that was put on the economic “wound” initially was the Obama Stimulus Program. The program was designed

There have been several economic theories mentioned in the news lately about the correct plan to stimulate economic growth. The current plan is for the Federal Reserve to begin an aggressive attack on lowering interest rates. There are many tools in the Fed toll belt that could be used, but recently the Fed has been purchasing Treasury bonds with the proceeds of maturing mortgage bonds. The Fed did so to make sure that the money supply wouldn’t start contracting at a time when cash-strapped states are cutting spending to close their budget gaps. Buying bonds in the open market lowers

I hate getting hit in the face, so when I see a punch coming my way I try to duck. An uppercut to the jaw is coming to most Americans next year so here is your chance to dart and weave. Not that you need more bad news, but the Obama Administration will have sweeping tax increases waiting for most Americans in 2011 and 2012. This is especially bad news for small business owners struggling to stay afloat. If your best friend is not a tax consultant you may want to begin to find one, because your net income for

News reports are commenting on how the US consumer is spending less these days.Why is consumer spending so important to the recovery of our economy? What about government spending, corporate spending, industrial or agricultural spending? Shouldn’t these numbers far surpass the spending of Johnny Lunchbox? Consumer spending taps into the very psych of the consumer. Think of it like a pulse on a patient in a doctors care. If the pulse is weak it says much about the patients overall health. Consumers spend with their emotions. Low confidence about future employment will equate to low spending at the retail counter.