Summary and text response Article Example | Topics and Well Written Essays - 500 words

Summary and text response - Article ExampleEconomists atomic number 18 surprised at the rate of growth in retail sales because the unemployment rate is still rattling high and people are not saving as much as before. The news that manufacturing proceeds has increased in New York is a positive sign because the manufacturing sector will play an most-valuable part in the economys rec all overy. The reason why growth has now suddenly started to clop up is out-of-pocket to lower gas prices and excessively the effects of the earthquake and tsunami in Japan require started to wear off. Even though the stock market is performing above expectations, investors are cautious due to the debt crisis in Europe. There is a strong possibility that the Fed will attempt to stimulate take away and hiring in the early part of beside year. The main concern is that the European debt crisis will spill over into America. Consumer spending is up from previous quarters, but many experts are worried t hat much of this is coming from nest egg rather than through cash. Because consumer spending makes up most of U.S. economic activity, it is a key indicator to arbiter how well the economy is performing.I think that the growth in the American economy is only scant(p) endpoint. Even though the economy is performing better than most experts had predicted, I feel that it is only delaying the inevitable. In all likelihood, the America economy will enter into a double-dip recession sometime over the next 12 months. Even though retail and consumer spending are up, these are only short term indicators and cannot be relied upon for the long term. What is even more disconcerting is that many Americans are choosing to cut into their savings in order to fund their consumer purchases. This does not lead to sustained growth because if savings decrease, investment will also go down. A strong U.S. economy needs to have good savings so that the giving medication can afford to pay of the U.S. de bt. Spending more money isnt going to solve the enigmaonly by saving can the economy get back to