In the article entitled “Economy Is Showing New Signs of Strength” written by the Associated Press and published online in The New York Times on September 5, 2013, the current economic condition of the United States was presented and announced in the light of prevailing external factors. As revealed, the facets that apparently contribute to the strength of the economy stemmed from the following sectors: increased employment opportunities in the service companies, particularly in auto sales; an evident lowering of interest rates due to “scaling back purchases of Treasury and mortgage-backed securities this month” of the Federal government; and decreased applications for unemployment benefits; among others. The increased employment were specifically identified in the services business, as well as in factories, which allegedly exhibited a new height in added jobs since the last two years. This was reportedly measured through the assistance of a payroll provider, ADP, which was able to monitor the marked increase in compensation to newly hired workers. Likewise, the robust economic condition, specifically the low interest rates, was said to be apparently instrumental in encouraging consumer purchases, as well as in spurring lending and increased spending to business organizations.
Personal Opinion on the Article
One strongly believes that the information contained in the article is an example of looking at the economy from a macro-oriented perspective. One therefore confirmed that the individual components, which were evaluated as the sources of strength, are the micro-perspectives; where it was disclosed that a closer look at the reported strength in the economic condition of the nation was actually spurred by the services sector. This is therefore indicative of the fact that the micro-perspectives, or the contribution of each sector of the economy effectively contributes to the overall macro-oriented picture. For instance, in this article, the services sector was clearly identified as paving the way for more hiring more people. This clearly contributes to lesser applications for unemployment. If other sectors of the economy also move in similar upward trend, then, the overall result is a significantly robust economy where unprecedented heights in growth could be exhibited. However, since for the period under study, it was only revealed that the significant growth came from only one sector, then, the strength of the economy could still be considered marginalized.
Overall, one still considers the news relevant in terms of the interconnectedness of the economy with other economies in the global market. As such, any remarkable and significant strength is an indication that the good economic condition could likewise reverberate to other international markets, especially those nations that do business with the United States. Likewise, as learned in the course module, the interconnectedness of economic conditions from one country to the other, especially with the United States leading the pace, could likewise send a positive effect to other economies on a global sphere. Thus, one could anticipate that in the next few months, some positive news on economic conditions in nearby countries would also be exhibited and reported. By then, the initial strength that spurred economic growth from the United States would hopefully improve other economies, especially from nations who need to exhibit lesser unemployment, decreases in interest rates, and successive growths in other sectors of their respective economies.
Work Cited
Associated Press. "Economy Is Showing New Signs of Strength." 5 September 2013. The New York Times. http://www.nytimes.com/2013/09/06/business/economy/economy-is-showing-new-signs-of-strength.html?ref=economy&_r=0. 9 September 2013.
