The GDP growth rose considerably to a annual rate of 3.2% up from the previous 2.6%
The market seems to be doing pretty well and those GDP numbers are pretty solid. Just the same I have some worries.
Housing is not looking any better and I think it is or at least could get a little worst. That scares me a bit. I think we are going to see a lot of foreclosures in the future and a lot of banks are going be taking on properties that they can not sell and I think that will be most of them.
Homeowners of course will do their best to stop foreclosure through a mortgage solution such as loan modification or even refinancing. But many will not be able to afford their mortgage payment or rather the home.
I suppose only time will tell. I would just hate to see things take a turn for the worst as I am not sure the economy has what it takes to pull itself back up from a double dip.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Friday, January 28, 2011
Monday, December 6, 2010
Long Term Decline in Manufacturing Jobs
There has been a long term trend of declining manufacturing jobs in the United States. This article will discuss the downward trending track of US manufacturing jobs.
Manufacturing jobs have been on the decline for some time now in the United states. This article will explore the reasons for this decline in manufacturing employment opportunities.
Productivity
Increasing productivity allows companies to maintain or increase their output using fewer workers. As new technologies are created fewer workers are required to carry out the operations of the applicable firm.
Outsourcing
Some manufacturing work has been outsourced to more productive companies. Some times a firm will outsource jobs to another country where labor prices are considerably cheaper.
Manufacturing jobs have been on the decline for some time now in the United states. This article will explore the reasons for this decline in manufacturing employment opportunities.
Productivity
Increasing productivity allows companies to maintain or increase their output using fewer workers. As new technologies are created fewer workers are required to carry out the operations of the applicable firm.
Outsourcing
Some manufacturing work has been outsourced to more productive companies. Some times a firm will outsource jobs to another country where labor prices are considerably cheaper.
Friday, November 26, 2010
Looking Back at Cash For Clunkers - Obama Plan
August 2009
Cash for Clunker - Obama Stimulus Program
The phrase "Cash For Clunkers" has been all over the media as of late and for good reason. Cash For Clunkers is thus far the most successful economic stimulus program, this notion is impressive by any measure but is even more impressive when you take in the fact that it makes up less then 1% of the stimulus budget. Not to mention that this figure was increased three fold from the original 1 billion dollar budget to 3 billion which was passed by congress due to the overwhelming success.
What is the Cash For Clunkers Program?
The Cash For Clunkers Program is a Consumer spending and automotive industry stimulus program that awards consumers with a substantial rebate in the amount of 3,500-4,500 dollars for meeting the following:
The consumer must trade in a "clunker" which is a term to describe a older automobile that gets poor gas mileage. Clunkers get 18 or less miles to the gallon.
The consumer must then purchase a new car that is fuel efficient and at least 4 miles to the gallon more efficient then the clunker traded in. The Incentive or amount of the rebate awarded is much higher for a car that is 10 miles to the gallon more efficient then the clunker traded in.
As mentioned in the beginning of this article the Cash For Clunkers Program performed much better then expected which was the catalyst behind congress's decision to triple the budget. Taking a look at the financial numbers describing the economic activity makes the popularity of the Obama stimulus program quite evident.
Resulting Economic Activity of the Cash For Clunkers Program
Economic Activity surged and more importantly then how much is where. Consumer spending as well as the automobile sales were two of the most troubled aspects of the recession and these were the beneficiaries of Obama's Cash For Clunkers Program.
Consumer Value
The Cash For Clunkers Program allowed the consumer participants to obtain substantial value per dollar.
Environmental Implications
This program will obviously help the environment because of the programs focus on fuel efficiency.
Gas Prices
The cost of fuel or gas will inherit downward pressure because of the quarter million clunkers that have been taken off the road and replaced with a more fuel efficient counter part.
Jobs and employment
This program will obviously help improve the employment numbers given the increased consumer spending.
Credit and Lending Activity
These new automobile purchases gave an upward push to lending activity, as consumers took on secured debt to finance these purchases.
Cash for Clunker - Obama Stimulus Program
The phrase "Cash For Clunkers" has been all over the media as of late and for good reason. Cash For Clunkers is thus far the most successful economic stimulus program, this notion is impressive by any measure but is even more impressive when you take in the fact that it makes up less then 1% of the stimulus budget. Not to mention that this figure was increased three fold from the original 1 billion dollar budget to 3 billion which was passed by congress due to the overwhelming success.
What is the Cash For Clunkers Program?
The Cash For Clunkers Program is a Consumer spending and automotive industry stimulus program that awards consumers with a substantial rebate in the amount of 3,500-4,500 dollars for meeting the following:
The consumer must trade in a "clunker" which is a term to describe a older automobile that gets poor gas mileage. Clunkers get 18 or less miles to the gallon.
The consumer must then purchase a new car that is fuel efficient and at least 4 miles to the gallon more efficient then the clunker traded in. The Incentive or amount of the rebate awarded is much higher for a car that is 10 miles to the gallon more efficient then the clunker traded in.
- 3500 dollars is awarded for a four mile improvement.
- 4500 dollars is awarded for a 10 mile improvement.
As mentioned in the beginning of this article the Cash For Clunkers Program performed much better then expected which was the catalyst behind congress's decision to triple the budget. Taking a look at the financial numbers describing the economic activity makes the popularity of the Obama stimulus program quite evident.
Resulting Economic Activity of the Cash For Clunkers Program
- Approximately 700,000 - 750,000 Transactions or new car purchases
- Approximately 20 billion dollars in sales
Economic Activity surged and more importantly then how much is where. Consumer spending as well as the automobile sales were two of the most troubled aspects of the recession and these were the beneficiaries of Obama's Cash For Clunkers Program.
Consumer Value
The Cash For Clunkers Program allowed the consumer participants to obtain substantial value per dollar.
Environmental Implications
This program will obviously help the environment because of the programs focus on fuel efficiency.
Gas Prices
The cost of fuel or gas will inherit downward pressure because of the quarter million clunkers that have been taken off the road and replaced with a more fuel efficient counter part.
Jobs and employment
This program will obviously help improve the employment numbers given the increased consumer spending.
Credit and Lending Activity
These new automobile purchases gave an upward push to lending activity, as consumers took on secured debt to finance these purchases.
Monday, November 22, 2010
Online Retail Sales are Booming
Well business on the Internet has been booming like always. The online retail sales and finance figures for the third quarter of 2010 are in. The figures are very impressive.
Nearly 42 billion dollars of retail commerce took place over the three month period ending in September. This figure is up 15% year over year. If that was not impressive enough take the following notion into consideration. During that same period when Online retail increased by 15% retail sales in general dropped by almost 5%.
WOW. That is some steady growth.
Online retail sales are up 33% since the lows of the recession. Further online retail sales have doubled since 2005.
Related Articles
Online Advertising Revenue
History of Online Advertising
Brand Development
Nearly 42 billion dollars of retail commerce took place over the three month period ending in September. This figure is up 15% year over year. If that was not impressive enough take the following notion into consideration. During that same period when Online retail increased by 15% retail sales in general dropped by almost 5%.
WOW. That is some steady growth.
Online retail sales are up 33% since the lows of the recession. Further online retail sales have doubled since 2005.
Related Articles
Online Advertising Revenue
History of Online Advertising
Brand Development
Monday, November 1, 2010
GDP Growth Rate 2% - This is Starting to Feel Real
Third quarter GDP grew at a annual rate of 2%. This is the third or fourth consecutive quarter of GDP growth.
This is great news and what makes it even better is the notion that not only is the GDP still growing but the overall economic growth rate is rising. This means that we are growing faster and faster. July through September yielded a growth rate of 2% and the months of April through June hosted a growth rate of 1.7% thus the rate has grown by about 15 - 20% which is outstanding.
The unemployment rate is still high, now at 9.6%, but folks have been expecting the unemployment rate to stay around these levels. Plus the free market, or rather the private sector, has created more jobs over the last nine months or so. They are running on a surplus. It is government budget cuts, and thus the need to eliminate jobs, or at least not hire, that has created the negative job figures.
Consumers are both saving and spending more. The notion that consumers are increasing their spending despite the decline in consumer credit is wonderful. The health of American consumer personal finance is on the rise there is no doubt about it.
Related Resources
Unemployed Homeowner Help
This is great news and what makes it even better is the notion that not only is the GDP still growing but the overall economic growth rate is rising. This means that we are growing faster and faster. July through September yielded a growth rate of 2% and the months of April through June hosted a growth rate of 1.7% thus the rate has grown by about 15 - 20% which is outstanding.
The unemployment rate is still high, now at 9.6%, but folks have been expecting the unemployment rate to stay around these levels. Plus the free market, or rather the private sector, has created more jobs over the last nine months or so. They are running on a surplus. It is government budget cuts, and thus the need to eliminate jobs, or at least not hire, that has created the negative job figures.
Consumers are both saving and spending more. The notion that consumers are increasing their spending despite the decline in consumer credit is wonderful. The health of American consumer personal finance is on the rise there is no doubt about it.
Related Resources
Unemployed Homeowner Help
Friday, October 8, 2010
Private Sector Jobs Increasing... a Little
The private market added an additional 65,000 thousand or so jobs over the last month.
The US economy overall however did not do so well as a whole our economy lost approximately 95,000 jobs.
This implies that government is downsizing and downsizing some more.
I am still excited that the private sector is still pumping out jobs.
Unemployment however is still very high at 9.6%
The US economy overall however did not do so well as a whole our economy lost approximately 95,000 jobs.
This implies that government is downsizing and downsizing some more.
I am still excited that the private sector is still pumping out jobs.
Unemployment however is still very high at 9.6%
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