Recovery or Recession:The Ongoing Debate
The economic situation seems to be improving, but many Americans think differently. Is the U.S. recovering or headed for another recession?
What’s the Latest Development?
According to a poll conducted by the Washington Post, 79 percent of participants believe the United States is still in a recession. Lakshman Achuthan, co-Founder of the Economic Cycle Research Institute, indicates the U.S. economy is shrinking based on three data points: declining consumption, factory output is slumping and consumers remain gloomy. On the other hand, the economy looks to be in recovery because of the healing housing sector, lower gas prices and salaries are increasing. However, these positives the economy is experiencing is not enough to convince many that the economic situation will turn around anytime soon.
What’s the Big Idea?
The U.S. economy has been recovering since 2009—or so they say—but many Americans still believe the recession is still in existence and is not getting any better. “Many see a rising risk of recession striking within 12 months, particularly with the “fiscal cliff” of tax hikes and spending cuts set to take effect on Jan. 1, 2013. Federal Reserve Chairman Ben Bernanke says unless Congress acts to avoid the cliff, a “shallow recession” could result.”
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