Business
Summary
This article shows statics and comparative of economy between years of the last decade in order to analyze what will be the situation for the present year.
The weak growth of labor market during the last decade has caused trouble with spending culture in North America, which also affects the whole economy in the Country; this means that the inflation is also growing weakly in order to maintain a balance in society, but this is not the target the government wants for the Nation just because the more money people spends, the more hiring will be offered to the labor market.
The last two months of the last year, were the best months for the economy since 2009, but the presage for this year 2014 is not so good, even when there is known that people are willing to spend more rather than saving. The target for this year is to increase hiring for the labor market, in order to increase spending culture and so inflation. Even though people is willing to save less and to spend more, there are concerns about that high percentage of people who are not earning almost anything just because they don’t have any real income in order to supply not only their basic goods, but also other products and services.
The second half of 2013 was a successful time for the economy in US, because it represented a good growth of consuming. As always, the higher spending was shown in basic goods such as domestic products.
There are two essential facts that threats economy in United States; the first one is what was mentioned before, about the lack of jobs for American people, which seems to be a strong reason of the actual situation, and the second one but nor less important, is a weak income for workers in United States, which means that a group of people who are receiving an income right now are earning not enough at all to spend in what they need.
Analysis
The article is written by Eric Morath, who is an economic reporter for The Wall Street Journal in DC. This article is supported by some sources from experts in economy such as Scott Brown chief economist at financial firm Raymond James & Associates Inc, and Sam Bullard senior economist at Wells Fargo & Co, between others.
The economic behavior in society can be compared with a “wheel”, in figurative terms, taking on account that it is a cyclist system; the final result depends on the beginning, and beginnings are up to final results.
It is important to say that everybody who is in adult age, or even a little younger, is willing to spend money, it means to be a consumer, even if he or she wants to or not, that is what makes the economy run further, and that is why, the American Government is so concern about.
Taking on account the two potential threats the economy has, (the lack of good jobs for people and the weak income of people who are already working), it is good to pay attention into what could be done in order to increase incomes to American people, and in order to offer more and better jobs. The other part of spending will be given by itself because of the spending culture it was already mentioned (people is willing to spend rather than save).
The idea is to make balance between what American people earn with what they spend, but in a world wide sense, so economy will be strong and perdurable not only for the United States, but also for other countries and societies.
