Tuesday, January 31, 2012

Economic Growth not Looking Good for 2012

The article I found on business insider talks about a variety of reasons why the economic growth will continue to disappoint in 2012. There is far more information than I want to talk about, but I urge everyone to take a look at some of the things they talk about.

The main reason that the outlook for 2012 looks disappointing is because the economy expanded at a 1.6% annual rate which is far below the 3% estimate of economists. This returned the US back to output levels in 07, but at the cost of adding $6 trillion in new debt. US economic growth may not top 2% this year and a 3rd round of quantitative easing by the Federal Reserve would have little effect. Martin Feldstein said "We're going to have a hard time reaching 2% this coming year, the economy is still in a "danger zone"".

http://www.businessinsider.com/why-economic-growth-will-continue-to-disappoint-in-2012-2012-1

1 comment:

  1. Rather funny article. It's always nice too have something that gives the overall layout of the current US economic situation. While it is too easy to spell out negative facts, I think it's time to increase value in human capital. That's one of the few ways of how people came out from depression in the past. ex) Japan, Sweden, Denmark, etc.

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