Signs of an Improving Economy

A decrease in jobless claims and an increase in consumer spending has some economists suggesting that the nation is undergoing an important recovery after the recent recession. This is potentially good news for the millions of unemployed as when the spending rate increases there is a greater need for workers. In California especially where the unemployment rate is one of the highest in the country, an increase in consumer spending would create a chain reaction in which more workers are hired by companies and the jobless benefits that the state has to pay to the unemployed will decrease. As a result, California's spending deficit could decrease drastically and the state could have the revenue needed to fund it's education programs as well as decrease it's debts. This would act to positively reinforce the growing economy. While spending tends to increase in the winter months as consumers purchase gifts for the holiday season, this has been the seventh consecutive month of gains for businesses after growing at a 2.4% rate from July-September. In addition, new home sales has risen about 5.5% after the market has stalled for so long after the housing bubble burst. The article also reports that there has been an improvement in the overall mood of consumers as these signs of a more promising economy have appeared. While the economy has quite a while before it will recover to pre-recession levels, I believe this new data enforces the idea that the economy is improving and that the worst of the recession is likely over. By the time we Seniors, graduate from school and eventually enter the job market there will hopefully be a more promising economy awaiting us.