Thursday, February 4, 2010
Cisco CEO says US economy on the rebound
The CEO of Cisco, John Chambers, told reporters that the sharp increase in capital spending will help boost the economy in 2010. He gave a bullish report on the economy and Cisco is traditionally a very good economic indicator especially for the tech industry. Tech firms are the first to feel the economy improving. Chambers also said that the economy needs the jobs to improve which will improve innovation then lead us to be a better export nation. All this going on, we will experience a better standard of living. These are all themes of our class.
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This article continues the wave of positive news flooding the media in recent weeks especially as corporations continue to express better than expected results for the last quarter in 2009.
However it is difficult to gauge the success of the economies surge because predictions from the White House still expect a 10% unemployment rate this year. It will be interesting to see how firms deal with employment especially if they want innovation in their workplace.
Last semester in Monetary and Fiscal Policies we talked about how GDP in expected in increase but the unemployment rate will also increase as well in 2010. I find it interesting that although the economy is expected to turn around, people will still continue losing jobs for a while longer. Near 2011, the unemployment rate is expected to decrease again. Hopefully, there will be more surprises to come and this will not be the case.
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