Tag: us economy

The Fed government is trying hard to boost retail sales. There are discount tags on all the items, and loans are easily available (except mortgage) to make purchases. However, thanks to the recent economic crisis, people have started realizing the importance of money. Many lost their jobs, many were downgraded, which helped people to learn to survive in less income. This is the time when we are trying to have more disciplined finances. But the government is pushing hard to make us spend more. Tough times are gone. Unemployment rate have started diminishing, and people have started spending again. But there has been a cut in their spendings. This has put me in a great confusion. If people start spending considerably again, it would help in nothing but repeating the same cycle. Conversely, if people don't spend more, the economy with certainly take a hit this year, and in the coming years. In  [...]

Recent data clearly shows that US economy is on a recovery path from its deep recession. However growth is expected to be moderate with the job market not reviving immediately. According to revised estimates by the Bureau of Economic Analysis, real GDP contracted by 0.7% in annualised terms in the second quarter of 2009 as against first quarter fall of 6.4%. The contraction in the second quarter was mainly due to negative contributions from inventory investment, private fixed investment and private consumption. Reduced government expenditure and decreasing imports contributed positively to growth in the second quarter. Initial reports for the third quarter also look positive. The quarter registered growth though at a trivial rate. According to the median estimate of economists the world’s largest economy probably expanded at a 3.2 percent annual pace from July through September after  [...]