And the Economy Bounces Back...

Seeing as we’re in Econ this semester, I thought that this would be appropriate…

According to economists surveyed by CNNMoney, 2011 promises a better economy! With the 17% rise in job openings by employers from June to October 2010, it is estimated that 2.5 million jobs will be added to the U.S. economy this year. In addition, fewer laid-off workers have filed for initial jobless claims (first week unemployment benefits from the government). In regards to business, capital spending has increased in the past few months; and as we’ll probably learn this semester, business expenditures often mean hiring of employees. The new jobs of the new economy will feed on themselves, creating a self-perpetuating cycle of wealth. Brett Ryan, economist with Deutsche Bank, puts it simply: “Jobs feed income and income feeds more consumer spending.”

Of course, all of the economy’s problems will not be solved this year. With 8 million jobs lost over the course of this recession, the close to 3 million added this year will only help to fix the damage. Economists still predict a high unemployment rate of 9% at the end of this year.

However, as evidenced throughout the holiday season in these past weeks, Americans seem to be opening their wallets a bit wider than they have in the past couple years. As chief economist for Manulife Asset Management Bill Cheney explains, “People have been frugal for three years. There will be a lot of new cars, a lot of new furniture, a lot of people moving out of their parents’ basement.”

So will our country pull out of this recession? I’d put money on it. Anybody else care to post an opinion?