http://www.bloomberg.com/news/articles/2015-02-08/don-t-despair-as-global-growth-shows-signs-of-health-led-by-u-s-
The economy seems to be showing signs of growth even with record lows in bond yields and sliding inflation. The United States seems to be plowing the way for change as cheaper oil and cash and currency are providing uplift. With gas prices being at half of what they were last year makes for growth in household spending. The world economy is expected to grow too at around 3.6 percent this year. This is the fastest pace seen since 2011. The United States is also seeing an increase in the value of the dollar leaving other countries of the world eager to experience the same benefits. The US employers have also taken on more then a million new workers since November. This has lead to a lowering of unemployment rates and a boost in consumer confidence.
4 comments:
I believe a lot of these benefits as of recently have been a result of volatile and low gas prices. I don't think that the U.S. can maintain or should maintain these prices. Although savings from gas are creating a surge in consumer spending I believe the government should tax gas now while it is cheap in an attempt to increase public projects. This boost in the economy is temporary and I don't believe we should expect it to last much longer.
The US is once again the "engine of global growth". From this article, Allen Sinai,a chief executive officer of Decision Economics Inc. in New York said “The fundamentals around the consumer remain extremely positive so consumer spending should carry the day.” This is very beneficial for the rest of the world, as the US's personal consumption is bigger than the GDP in another country. This will allow for greater trade and US imports in the future.
I believe US is experiencing the recovering period since the financial crisis in 2008. The consumer confidence is 98 which is 11 years high, growth rate is higher than inflation rate, and unemployment rate is keep decreasing since the year 2009.
I think the greatest barrier to a full economic recovery is a remaining skittishness (lack of confidence) on the part of investors, many of whom are still skittish about the prospects for long-term, global recovery due to problems in Europe and potential problems in Asia. A single default in a critical nation could well force the whole system into shock again if the wrong circumstances exist.
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