Economic Indicators On The Economy

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There are many economic indicators when determining how the U.S. economy is doing. Things that are used by economist to determine how the economy is doing are GDP percentages, wages, employment rates, consumer spending rates, American’s lifestyles, and the global economy. A main indicator in the current economy today is consumer spending because it takes up 70% of the U.S. economy. The economy in 2016 is not doing well because of decreases in the economic indicators which are scaring economist about a recession for 2016. The economy at the beginning of 2016 was at a good start and 2016 was estimated to be a good year due to the economic growth not slowing down as much as estimated in the fourth quarter of 2015. With GDP rates succeeding throughout 2015, the economy of 2016 was estimated to do very well. However, rates are falling rapidly since the beginning of the year. Economic growth during the first quarter was at 2.5% in February. However, this rate dropped 2.1% which put the economic growth for the 1st quarter to 0.4%. The past 11 recessions were caused by a 2.0% drop in GDP. “The trouble is that U.S. economic growth has been near its historical “stall speed” of around 2.0 percent since the second half of 2010... Each of the last 11 recessions was preceded by a drop in real GDP growth to 2.0 perfect.” (The U.S. Economy Has Stalled, Again). A large amount of GDP percentages are based on consumer spending. 70% of the U.S. economy is based off of consumer spending. However, Americans are not spending as much as they usually do which is really hurting the income of consumer spending. There is no seen reason for this issue other than American’s are just trying to save their money. Over the past few months, even over the holid... ... middle of paper ... ...CNNMoney survey of economist this week. (CNN). The stock market was off to a very bad start since the beginning of the year and they stocks dropped 10% in January. It is not very common for the stock market to pull the economy into a recession, it is usually the other way around. However, there are warning signs beyond the stock market with the U.S. manufacturing already being in a recession. Economist are looking into unemployment rates closely to determine if the recession is moving beyond manufacturing. Overall, the economy is doing badly because the consumer spending rates that are dropping. A possible solution to fix the economy and to end fears of a recession are to raise wages similar to what Jerry Brown did in California. If wages are raised, consumer spending will be doing better which would not only help the U.S. economy but the global economy as well.

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