U.S. Economic Outlook: Is The Global Recession Over?
Posted on 22. Sep, 2010 by Tony Valencia in Politics
What is the current state of the United States economy?
According to a report recently released by an economic spokesperson, the recession has been over since June of 2009.
Given the recent increases of the Dow Jones Industrial Average and the fact that companies have been posting positive earnings reports, all indicators are reporting that the recession is over.
At the same time, the housing market and unemployment rate are not encouraging. While the official unemployment is hovering around 10% for the nation, the figure for those who have actually been negatively impacted (lost benefits, lost pensions) by the recession is around 20%.
Though the recession is over, the housing market seems to be going almost nowhere. Mortgage rates keep dipping lower as the government aims to create incentive for consumers to buy homes. While construction for small condos and apartment complexes has recently increased, projects for larger housing units remain inactive.
It was also announced today that the top economic advisor for President Obama, Lawrence Summers, will be leaving the White House at the end of the year. Lawrence Summers has been receiving much scrutiny for his failure to stabilize the economy through a speedy recovery from the recession.
One final issue worth noting is the idea that the President George Bush tax cuts will most likely no longer be in effect after 2010. Congress is set to meet on this issue in the very near future, but unless a bill us passed, both ordinary income and capital gains tax rates could increase tremendously.
Is the recession over? You be the judge.
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