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Tag Archives: Economy

Statistics Point to Hard Times for US Economy

We keep hearing that the economy is recovering, if it hasn’t already recovered, from the disastrous economic climate which began with the crash of 2008. Yet many Americans still feel insecure about the future. They are not imagining things: hard statistics unfortunately supports this negative feeling.

•    The middle class is getting smaller while the lower class and richest Americans are growing in numbers. Today about 50 million live below the poverty line, the largest number in US history. As many as 40 percent of all Americans are forced to spend over 50 percent of their incomes on food and housing.

•    The shrinking middle class is driving consumer fear of spending. According to the Commerce Department retail sales slowed by 0.3 percent last month. Not a good sign when Wall Street has predicted a 0.1 percent gain. Car sales were down by 2.1 percent, and restaurants are among the countries weakest sectors.

•    Incomes have been dropping. When you adjust for inflation, even states in which minimum wage was increased are experiencing a lowering of wages.

•    The amount of debt that individuals are carrying continues to climb. This is a major issue when we realize that auto loans are valued at over one trillion dollars. The average balance per person is $12,000, using almost 8 percent of the average borrower’s disposable income.

•    Taxes are eating up more income than ever. Tax freedom day, defined as the day of the year after January 1st in which the yearly tax bill has been paid, arrived on April 24 this year. Translation: all Americans together had to work 114 days during 2016 just to pay the national tax bill.

Consumer Confidence Up, Economy Chugging Along

The Commerce Department released its latest figures for retail sale and restaurants, showing a rebound in September after a slow start to the year. The retail and restaurant sector posted a 0.2 percent monthly gain in August, and an annual increase to date of 2.2 percent. Analysts believe that retail sales improvement is all that… Continue Reading

Economy Unsure of Where Its Heading

September inventory and sales figures are helping renew optimism in the economic recovery after August figures fed fears that the economy was entering another slump. August’s bad news was found in the miniscule 0.1 percent rise in business inventories. August’s tiny rise was the smallest in over a year. August sales also fueled skepticism with… Continue Reading

As Economy Recovers Recession Mood Lingers

Despite data showing that the US economy grew at its fastest rate in eight years during the second quarter of 2014, Americans still believe that the country is still in the midst of a recession. The economy swelled during the Q2 at an annualized rate of 4.6 percent, duplicating the fastest quarterly growth since 2006.… Continue Reading

Holiday Spending Boosts Stock Market

Consumers are showing some renewed enthusiasm and driving economic growth. In fact, stocks rose on Monday to record highs. The Dow is up 73, and the S&P 500 rose 9 alongside a 44 Nasdaq increase. The boost was supported by gains in Apple and Facebook, according to CNBC.com. Daniel Greenhaus, chief global strategist at BTIG,… Continue Reading

Companies Struggle to Raise Pricing

Though many businesses in the U.S. are hoping to raise their prices, many will have to weigh their options before implementing any changes. Walt Disney Co. is one of the few examples of companies who have successfully hiked their prices since 2009, recently raising its single-day admission prices to U.S. theme parks by up to… Continue Reading

U.S. House Market Expands as Economists Predict Bright Future

The U.S. housing market is on the rise, with house purchases reaching their peak of more than two years. Existing property value has also increased, pushing the real estate market higher and encouraging economists and investors to brighten their outlook on U.S. expansion. According to a median forecast of economists, new-home sales have risen to… Continue Reading