As Economy Heats Up, Traffic Backs Up

03-30-2013 - Traffic is Good

In determining the future of the economy, all of the factors are considered to try and predict an accurate direction. A surprising index of measurement is the amount of traffic and delays experienced across the country. By using G.P.S. systems in cars and trucks, an average is calculated for the amount of time spent on the road.

The most recent numbers show that the amount of traffic is starting to add up in America, and while that sounds like a terrible announcement, the idea is that as more jobs become available and money becomes available to spend, people hit the road and get to work. Thus, the economy is expected to begin picking up according to the index, unlike the economy in Europe, where traffic is down, like their economy.

I think that the idea of using commute times is an interesting way to try and predict the economy’s health. However, I’m sure there are many factors that influence traffic time, and although the study tries to isolate the economic variables, it can not remove all outside factors. None the less, there is merit behind the logic, and it supports the idea that the nation is back on track for a recovery.

Source:

http://www.nytimes.com/2013/03/30/business/economy/traffic-backups-as-a-gauge-of-an-improving-us-economy.html?ref=business&_r=0

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