Thursday, April 24, 2014

Sluggish Economic Recovery Proves Resilient

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:

Unknown said...

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.

Anonymous said...

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

Anonymous said...

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

Gyeongrae Savier No said...

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.

Anonymous said...

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.