According
to the article, the U.S. economy began expanding in June 2009, and after 58
months, the recovery is one of the most sluggish, based on the high
unemployment and low GDP growth rates.
Economists and politicians offer numerous
explanations for the slow recovery. Republicans blamed Democrats for tax
increases, debt and regulations, that have added uncertainty to the economy
while Democrats blame Republicans for withholding support for stimulus spending
when the economy needs a boost and brinkmanship during fiscal battles.
Some
economists attribute the unusually weak growth to the continuing effects of the
financial crisis as these crises historically generated long-lasting drags on
financial conditions. Others say that that the labor force and productivity are
growing slowly while consumption and savings are reduced compared to the past.
At the same time, some policy makers are concerned about the instabilities of
the Fed.
On
the other hand, it is believed that a typical recession remains distant because
if boom must precede bust, no bust is in sight since growth has been so slow.
At
least, we should not be worried for now as it looks like the economy is still
growing and another recession seems far away.
http://online.wsj.com/news/articles/SB10001424052702304626304579510070088630140?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304626304579510070088630140.html
5 comments:
I think it would be naive to assume that the economy can not go through another recession because it has yet to boom since the last recession.
While we have come to understand the business cycle of ups and down, the recession has certainly slowed all potential growth. We may be on the upside, but for how long until another financial mishap
While we have come to understand the business cycle of ups and down, the recession has certainly slowed all potential growth. We may be on the upside, but for how long until another financial mishap
Out of many consequences of recession, unemployment seems problematic because it discourages consumer spending because you don't know when you will lose jobs.(even if you have one) I think providing environment for consumers to confidently spend helps the economy to recover.
Exactly what Ryan said, just because the economy has not boomed does not mean it is stable either, so there is still a chance that things could go south again.
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