Job Growth Boosting the Economy

Over the past few months, unemployment rates have dropped, the economy is growing at a steady pace, and labor workers are earning more per hour. Depsite all of these positive incentives for the job force, the American economy could be in danger. Interest rates are higher than ever, and are not believed to be dropping anytime soon. This could be based on the fact that American's are spending at a rapid rate, but placing all the debt on credit cards, increasing the national debt. Let's not forget also, that with the increasing national deficit, most of the money being spent by American consumers is borrowed money.
With increased spending by American's boosting the economy, high inflation rates are posing a real threat to this situation. Economists say that at this constant rate of spending, inflation rates are bound to rise substantially. If inflation rates rise like predicted, the American dollar will be worth less and less in the long run. American's will begin to spend less and less on leisure activities, while inferior goods start to grab the attention of more and more consumers. Income will become less elastic, and in the end the economy will be looking at a recession or maybe even a severe depression.