WRAPUP 1 Bullish U.S. manufacturing construction data bolster growth outlook Essay
WRAPUP 1 Bullish U.S. manufacturing construction data bolster growth outlook
America has always wanted to see growth within its system. Therefore with the growth in the manufacturing sector, the citizens are expected to benefit from it. The article has three points which in my opinion will be able to ensure that the country’s economy changes in a positive way; for instance, the ideology of the manufacturing activities rising from 2011 means that the global market will be bombarded with the goods from America. It also means that the workers in the manufacturing sector will have to benefit from this rise. At the same time, the rise in new orders will have to give room for the innovators to come up with new products to be manufactured. Therefore, the construction sector will also have to employ more people meaning that the country will have to curb unemployment.
Why Main Street isn’t creating jobs
For a very long time the main street had been seen to be the leading sector in job creation. However, the small businesses are fighting for better market making it impossible for growth in the sector. The market is also flooded with the small businesses making the competition to be stiff. The entrepreneurs have also been made not to create more jobs with the rise of healthcare cost, red tape and minimum wages debate. For instance, the government has set up policies of minimum wages while the business might not be able to attain the threshold making it impossible to employ people in accordance to the policy.
Fed keeps record-low rates for now, but investors, consumers, businesses face the inevitable
The Fed has insisted on keeping these low records in the market while the people who are having problems are the employers and business owners. For instance, the market enjoys a growth within the construction and manufacturing sectors whereby people expect the employment rate to also be on the rise. Therefore it is expected that the job market should be high and layoffs should be low.
This is why the middle class can’t get ahead
The middle class society has the highest number of individuals across the globe. However, during the recession they were the individuals who felt the pinch and it has been difficult for them to recover. At the same time, there are some of them who have not been able to recover citing that they are still facing recession. Downturn has made it impossible for business ideas to be implemented as majority of the people are yet to recover. This means that it would be impossible for median household income to sustain families or even give room for recovery.
US job growth is rising solidly, so why isn’t pay?
From the look of things, individuals expected to have a lifestyle change after it was reported that the hiring rate in the United States was on the rise. However, after being employed things have been worse since the wage is minimal. One thing that the people need to understand that the five years of recession has made it difficult for companies to recover. At the same time, the companies are not capable of hiking the pay since it would interfere with their budget of running their businesses. The problem might not be hitting the employees alone, but rather also the government as the trend does not give room for the economy to strengthen.
Investors gird for scarier days in markets
Business individuals always have the best forecasting techniques for the market. This time their predictions might be right as the market has become volatile for them to withstand it. Their worry is related to the stock market that indicates weakness. As the stocks lower, the other regions might take advantages of the loopholes and beat the U.S. market. The hazardous nature of the market has made it impossible for the more investors to venture into the market or even new products. This would mean that the market will remain stagnant with the same products and lack of innovation.
World economies warn of global risks, call for bold action
It is important for bold action to be taken in aid of bolstering the global economy. The main aim is to ensure that there is a smooth recovery in the different economies across the globe. This will make government to have budgets that will be able to sustain their people and their businesses. The International Monetary Fund declared the call for action after it had realized that the governments were running under tight budgets that might not sustain their economies. Low budgets for the governments makes it impossible for governments to maintain some of its infrastructures, health sectors and better governance. The tight budgets are also associated with the high levels of poverty within a country.
Why deflation is so scary
The only individuals who are scared with the rise of deflation rate are the investors and the business owners. The prices of goods are seen to be dwindling. The consumers have a lot to celebrate but the entrepreneurs are afraid that soon they would be counting their losses. On average, majority of the goods in the market are having their prices lower to fit the budget of the buyers. Individuals should not be happy with the whole idea of deflation, as it would interfere with their economy. The price for production would have to be lowered making the companies to come up with goods that are not of good quality.
Top economist looking for Fed to surprise market
The Fed has been known to come up with policies, which strengthen the country’s economy. However, the entrepreneurs have seen it fit to give everything to the Feds. This might be a bad thing for the feds, as they will be held accountable if the economy goes the wrong way. The economists have seen it fit to put the blame on the feds incase the business does mistakes. They had noticed that there is a looming inflation rate and they needed someone to blame.
China’s October factory growth unexpectedly hits five-month low: official PMI
From the look of things, it seems that all the economies around the world would have to come with different strategies to fit the market. For instance the drop in the manufacturing sector in China might be a big blow for their economy. The country is known to have the biggest market around the globe when it comes to having products in the market. However, the biggest reason as to why the growth is not being felt is due to the nature of the products they bring into the market. There have been numerous complains indicating that the goods from the region are not standardized. However, it is essential for the manufacturers to look at the market and know the type of goods required by the consumers.
Annual China trade growth slows in October in further sign of fragility
If the second largest economy is dropping in growth, then their strategy would have to change. It is understandable if Chinas imports reduce but a bad sign if the exports reduce. The reason for this statement is that, the country has been known to innovate and manufacture products that they acquire from other countries. The domestic demands for their own products is on the rise making it impossible for the export market to hit the region. Therefore, the policy makers venturing into china are supposed to come up with a product that the region does not have.
Falling inflation a worry for Europe but also the world
The European market has always been understood to be a mature market. This would mean that if it is hit by inflation then the global market would also have to suffer. The European Central Bank would lose in taxes and fall of the property market. Therefore, if inflation is curbed in Europe than the rest of the world will be at ease.
U.S. crude down seven percent to May 2010 low on OPEC, new low likely
The traders in the crude oil business estimated that their output had fallen by 7 percent. This might be true since the market has experienced emergence of other producers who have lower prices. Another reason for this is the decision by Saudi Arabia to block the United states to sell their products to the U.A.E. the only regions benefitting are the African and Arab nations that deals in crude oil.
http://finance.yahoo.com/news/this-is-why-the-middle-class-is-still-reeling-170441453.html http://finance.yahoo.com/news/us-job-growth-rising-solidly-180238861.html?soc_src=copy http://finance.yahoo.com/news/investors-gird-scarier-days-markets-012706729.html?soc_src=copy
Subject: Business & Economy,
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 1 September 2015
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