Tuesday, June 07, 2011

How is the economic recovery doing?

The melt down of the financial system was prevented.

The stock market has regained a lot of the losses it suffered.

GDP has returned to pre-crisis levels.

The rate of job losses, which was 2 million per quarter at its worst, has been stopped and the unemployment rate of 9.1 percent is too high but better than it was.

Too many families owe more money on their homes than the homes are worth. (When home prices are going up, the three-fifths of families that live in their own homes save less of their income and buy more; now they are paying off debts, including credit card and consumer debts. The demand for goods and services is thus suffering.)

Economists are arguing as to whether more economic stimulus is needed now to fight the recession, or whether we should start immediately to pull down the national debt.

Republicans don't seem to care what the experts think is the right strategy, focusing all their efforts to decrease public spending. They may do more harm than good.

No comments: