Saturday, February 7, 2015
Anxiety and Interest Rates: How Uncertainty Is Weighing on Us
This article is talking about interest rates within the US and how technology such as the internet are taking away certain jobs and it is effecting employment. It is very odd that with interest rates being so low that Americans are still saving a large percentage of their incomes and this is due to low consumer confidence and the uncertainty of the future. With inefficient markets this anxiety of Americans is being amplified and causing many to take action with their assets when no action is actually needed. The current credit expansion is creating wealth illusions when we really need to come up with an insurance plan for whatever does loom ahead. What do you think could be done to help with this financial/asset anxiety?
http://www.nytimes.com/2015/02/08/upshot/anxiety-and-interest-rates-how-uncertainty-is-weighing-on-us.html?ref=economy&abt=0002&abg=0
Subscribe to:
Post Comments (Atom)
6 comments:
It seems that uncertainty is something we will never be able to avoid in the market. I find it interesting to sit back and realize that technology, although increasing efficiency, does take a negative toll on the workplace in terms of employment. We have been working towards making production the most efficient as possible by using technology to replace human capital, while not realizing outcome of this - rising unemployment.
I agree with Abby. I think uncertainty in the market will always exist. I think stability over an extended period of time is the best solution for improving consumer confidence.
I agree with both Abby and Emily. Stability is definitely needed to boost confidence, but I don't know how easy that will be to achieve unless more unskilled workers are able to move unto skilled labor. Technology does harm employment in unskilled for the most part, but it also creates new markets. The possibilities for expanding employment through technology is exciting but it will require an emphasis on raising levels of education.
It's scary to learn about the power technology have in our economic systems. I don't think there's anything we can do about the negative effects of ever- improving technology on the unemployment issues. However, as the technology develop, there would be other demand for different jobs sectors like technology development and management, and etc. We just have to polish our skills set to get ahead of the changing in technology
I also agree with Abby and Emily. Uncertainty is something we will never be able to avoid. However, I feel that since the economy is doing better and starting to grow again, more individuals might start wanting to put money into other things, rather than saving it. However, I could also understand how individuals would be scared not to save judging on the past.
This is an interesting article due to the nature of saving. The US has a very large MPC especially compared with Asian countries. I think that the savings figures need to be taken with a grain of salt. We are at an interesting time in history with boomers retiring and a large disparity between the lower and upper class. I think these are confounding factors in the saving figures.
Post a Comment