State of the Economy
Ever since the terrorist attacks on America a weak economy has seemed to fall apart. People have been reluctant to travel which is hurting the airline and hotel services, and have been saving more in case of their own sudden lay-off. Before the terrorist attacks ever happened there was an economic slow down. This slow down was mainly because of a misjudgment by merchants who over stocked their inventories, which hampered production and people had to be laid off. I believe that within the next couple of months, and with the support an aggressive government policy, the economy will turn around for the better. Unemployment in the United States is at its lowest point in nearly five years. The jobless rate is up to 5.4% at the end of October according to www.dismal.com. The recent terrorist attacks against the U.S. prompted many of these layoffs. The attacks are not the only thing to blame though, since for the fifth month in a row aggregate weekly hours declined. The chart above (www.economicharts.com) shows how drastic the decrease in jobs has been over the past couple of months. The drastic decrease in jobs was far worse then even the most pessimistic forecasts. The worst losses were suffered from
Schiller defines inflation as, "an increase in the average level of prices of goods and services". Because of the build up of inventories by businesses there is either no or little inflation. As one can see from the chart below inflation is very volatile. It changes all the time and every since the attack on September 11 it has began to fall. I believe that once the economy relaxes a little and starts to spend more, then inflation will start to level out and become steadier. A recession is widely defined as an overall slowing of economic activity. "One common and often cited definition of the beginning of a recession is two consecutive quarters of decline in real GDP(Gross Domestic Product)" according to www.economics.about.com. According to www.economics.about.com there are three main things too look at when thinking about a recession. The first is the output, which is usually measured by the Gross Domestic Product. The second is employment, and during a recession there is usually a decline in both output and employment. The third is duration, there is no set length of time for a recession; but since 1945 the average recession has lasted about 11 months. If one was to go by this average of 11 months, and if one thinks that we have been in a recession since last year then we are due to come out of it at anytime. Many economists have said that we have been in a recession since the beginning of this year. Most think that a strong buying season will help to build the road to recovery. I believe it is not a question of whether or not we are at risk of a recession, but when we will come out of it. Going by what I have read, I believe that we will begin to come out of the recession and start to recover in the months following Christmas. Aug 1 6.00% 6.00% 7.25% 8.75% 8.25% 8.50% 8.50% 8.00% 9.50% 6.75% May 1 6.50% 6.00% 6.75% 9.00% 8.25% 8.50% 8.50% 7.75% 9.00% 7.50% the manufacturing and services industries. "The data is weak everywhere one looks, even in sectors that one would have expected to hold up, one being construction," said economist Alan Ruskin of 4CAST Ltd. in New York. " We are seeing extreme weakness in the service-producing sector, suggesting a marked broadening of the slowdown." According to dismal.com "there are now well over 7 million unemployed people in the U. S. Of these, 3.2 millio
Some common words found in the essay are:
Prime Rate, Federal Reserve, Domestic Product, Research September, Ltd York, Reserve Policy, Unemployment United, , Delano Roosevelt, 825% 850%, federal reserve, 600% 600%, 850% 775%, 650% 600%, 1 650%, 850% 850%, 1 650% 600%, 825% 850% 850%, 900% 825%, 875% 825% 850%, 875% 825%, 1 600%, 1 600% 600%, Gross Domestic, 900% 825% 850%,
Approximate Word count = 1578
Approximate Pages = 6 (250 words per page double spaced)
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