Expanding U.S. Economy
The U.S. economy grew in the third quarter of this year at 2.2%, far high than was expected. This comes as a great relief to the Federal Reserve and the Department of Commerce. Federal Reserve Chairman Ben S. Bernanke attributes the recent slump in the economy to the fall of the housing market. According to the article the Federal Reserve believes that the slump in housing has yet to spill into any other market. In good news though the Federal Reserve is planning to leave the current interest rate as it stands at 5.25 percent. The Reserve in doing so shows a belief that the current interest rates will continue to prevent inflation in the U.S. economy. Also in the spotlight according to the Post article is the average price for an existing house. The price value is up nearly 2 percent over last year, meaning that it could possibly be a good time to sell. While the rate of selling a new home is down
It’s been five years since the attacks on 9-11 and yet the U.S. economy seems to still be lacking. With the arrival of the Democrats on the Hill and the War on Terror is it possible to revive our economy? Will the expenditures that our nation is now making trigger a development of the economy similar to that post World War II?
6 comments:
with the spending on the war on terror as it is, and the economy still recovering from the 9/11 attacks, the economy is likely to rebound. It will not fall into the same events following WWII.
with the spending on the war on terror as it is, and the economy still recovering from the 9/11 attacks, the economy is likely to rebound. It will not fall into the same events following WWII.
I think one of the main reasons of the poor economy is the war in Iraq. Millions and millions of dollars is being used for weapons, supplies, and reconstruction. The effects are being felt over here, especially because of the 9/11 attacks. I think until matters are settled, and our troops are brought home, the economy will continue to suffer.
The economy may be in a slump but that doesn't mean that it will be that way forever or that it will get worse. With new members now in office, maybe there will be new ideas also about how to handle the government spending.
I think that theres got to be some way to revive our economy even with the Democrats in office and with the war on terror. I don't know for sure if the expenditures will trigger a development in the economy like in WWII, and I do not think any one knows that answer. We can only hope it does.
War is good for the economy. After World War II, we saw economic explansion (a combination of expansion and explosion... Colbert Style). I believe that as time goes on, we will see our economy improve more and more. As the war comes to an end, we will see a logical progression to a new series of "Baby Boomers" as 200,000 soldiers return home. They will need jobs, and will probably want to settle down eventually. This will help turn around our housing market slump, and increases sales of Pampers and Gerber products, all leading to the need for a family vehicle, and eventually, college tuition and a laptop. All of this stimulates the economy.
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