America is a consumer-driven economy and according to the current Consumer Board’s index of consumer self-confidence, the trend is downward, not upward as much as the administration attempts to encourage us otherwise
No Great Expectations
According to the Consumer Board guide, Americans anticipate:
- Increase in inflation
- Decrease in enhanced business conditions
- Expect fewer jobs
- Anticipate incomes to decline
Believe these findings aren’t important? Consumer confidence plays an important function in the economy through home spending, which makes up 70 % of the U.S. economy.
The nation has lost a lot of jobs over the past couple of years that it’s approximated that even at the rate of 200,000 per month, America won’t return to 6 % unemployment until 2016.
Government officials tell us the economy is growing again this year. But, if we were in an economic recovery, we ‘d expect a much healthier growth. On the other hand, the Great Depression as it arose from the deepest hole in 1934 saw the economy grow at 7.7 % and in 1936, it grew 14.1 %.
And there are two other unfavorable trends that economists can’t disregard: dropping per hour wages and falling housing prices. Per hour incomes continue to drop because of the lack of jobs and housing rates continue to fall due to the fact that individuals still can not pay their home loans.
Innovation Is Key
The larger issue for the majority of us is this: nobody really thinks the economy of the future is going to resemble the economy of the past. And the longer we keep expecting the return of old production and manufacturing jobs, the much deeper the rut we’ll discover ourselves in. It does little good to revive exactly what used to be rewarding; Americans need to figure out what will be profitable to produce in the future.
We are currently preparing students for jobs that do not yet exist, to use innovations that have not yet been designed, to resolve issues not yet identified. One from every eight couples wed in the U.S. last year met online. The number of text messages sent out and received every day surpasses the population of the planet. The amount of technical details is doubling every two years. For four-year technical students this indicates that by their 3rd year, half of everything they have actually learned will be outdated!
Absence of Sincerity
Wall Street is buoyant, however that’s because the only group that’s positive about the economy are the CEO’s of leading American companies. Small and medium companies, however, are still feeling mindful and worry that rising inflation might offset their earnings.
Innovators need to be searching for brand-new financial investments, new lines of work, and new career courses for employees. America needs more than a recovery; it requires a vision for the future.