Economy Lookout Not So Good?
Recently it was reported that several economic forecasters (supposedly people who know what they’re talking about when it comes to finances and the US economy) are saying that there are some not so bright days ahead for the US economy. But I thought things were looking up?
Apparently the economy is somewhat sensitive to highs and lows, and you can look at the economy as sort of a “blood sugar” of economics and finances. It’s good to maintain it at a steady rate, not get too high or too low, just like with your blood sugar (I’m terrible at analogies, so forgive the less than adequate explanation, if you get it - great!).
The economy was looking good from a growth standpoint at the beginning of 2006, but experts say that growth has slowed tremendously, which usually means tougher days are ahead. Can’t we catch a break?
Here are the factors economists are saying will influence our economic outlook:
1.) Businesses only created 75,000 new jobs in May (opposite of what I earlier reported, this was reported after I posted the job outlook, the government was surprised too). This may not sound so bad if you didn’t know that the government forecasted an estimated 175,000 new jobs being created. Population? Maybe…
2.) The housing boom of 5 long years is coming to an end.
3.) The inflation that has been somewhat absent as of late may also start to be an issue. Believe it or not, inflation can sometimes be a good thing, although not on it’s face, inflation is needed to create a healthy and strong economy.
