Colorado State University Global Campus
Macroeconomics Final Project week 8 Econ 400
The first thing we learn in our macroeconomic class is that people face trade offs. It is hard to gage which trade off is better for us as a whole, when economists and politicians are split between both positive and normative, in that they feel they know what will “fix’ the issue at hand, to the best of their judgments and understanding of the economy and its current state. The economic recovery as of today is questionable at best, and many fear that a double dip recession is in the works. I read many articles on the state of our economy and its growth and learned that many indicators are showing we are not doing that entire great. Growth in the first half of the year ended up being much lower and slower than was originally predicted, and in turn the prediction for the full year has been shown in a smaller number, this according to “ Laura D’ Andrea Tyson” an economics professor at the University of California, Berkeley. Along with other indicators, consumer confidence is looking like a sad faced puppy needing a good rub down. In the article, “U.S Consumer Confidence Falls to Lowest Level Since April 2009”, we find that according to the author, “ the consumer confidence index fell to 44.5 in August from 59.0 (Daily FX, 2011)”. This means that ultimately consumers are afraid to spend their money and are keeping a tighter hold on what they earn by not spending. The lack of spending ultimately affects the economy as the loss of profits to firm’s leads to stock pricing panic. A retail sales increase would be a good push that would help get production up, thus leading to an upswing of other things such as materials and ultimately manufacturing. However, consumer confidence isn’t the only indicator...
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