Federal Cuts Are Concern in Modest U.S. Growth
Economists continue to analyze the state of the economy by looking into consumer spending, unemployment rate, gas prices, etc. There has been positive news regarding the economy’s growth and expansion. However, after further examination, some economists have realized that this is not the case. For example, Steve Blitz, the chief economist of ITG Investment Research, believes that the speed of growth is still slower than what is necessary to fully recover from the depression. In addition, new jobs have been created in the food service and retail industries. However, these are industries that are known for low-paying positions. As a result, families are still struggling to pay for taxes and other household spending.
Federal cuts have also played a role in the economy’s growth. There have been negative results because it is the only driving force. Private companies are still reluctant to spend because of the instability of the market. It will be interesting to analyze how the economy will grow in the future because of the many mix signals in the economy today.
Written By: Melody Mark
Source: New York Times