Economic Recession and Expand
Since June of 2009 our economy has been expanding. This expansion comes after The Great Recession which lasted from December of 2007 to June of 2009. During The Great Recession a lot of people lost their homes, the stock market crashed and a lot of businesses (Big and small) went bankrupt. But after this we turned everything around and have been expanding ever since. That is why I believe we will keep expanding in 2019.
In October of 2018 consumer spending increased 0.6 percent. And then in the month of November it jumped another 0.
3 percent. Personal income increased 0.4 percent in October and the month after it increased another 0.2 percent.
In 2019 Money supply rising is a given and the number of times the average dollar is spent is rising according to the statistics of 2018. According to the equation of exchange if money supply and the number of times the average dollar then there must be an increase in prices of goods and services or an increase in quantity of goods and services.
Unemployment rate has been going down. Even though it went up by .2 percent because of the people who saw the strong job market and started looking for jobs again. In the month of december 312,000 jobs were added. From the October to November 58,000 payroll increases were revised. Another thing that happened was wage growth for average hourly wages increased a total of 11 cents. It is now 27.48 (a nine year high).
Another reason that our economy will continue expanding is because the housing sales in 2019 will be stable which means mortgage rates will be high like it is currently.
When mortgage rates are high it shows there is a good economy because people have the money to spend. They have the money to spend because of decreasing unemployment and increasing wages.
I asked a local coffee shop owner if he believes the economy will keep expanding like it has been for the past 9 years or it will receding. He said he believes it well keep expanding because he has noticed there is an increase of customers way more then before. He believes the reason is because of rising wages and decreasing unemployment and also because of his Chai tea.
In conclusion this is why I am predicting that the economy will continue expanding because more people working, consumer spending is increasing and because wages are going up.
- Amadeo, Kimberly. “The Great Recession of 2008: What Happened, and When?” The Balance Small Business, The Balance, 2018, www.thebalance.com/the-great-recession-of-2008-explanation-with-dates-4056832.
- Orton, Kathy. “Experts Weigh in on What the 2019 Housing Market Will Bring.” The Washington Post, WP Company, 7 Jan. 2019, www.washingtonpost.com/business/2019/01/07/experts-weigh-what-housing-market-will-bring/?noredirect=on&utm_term=.06d03c907740.
- Davidson, Paul. “December Jobs Report: 312,000 Added, Easing Recession Fears amid Stock Turmoil.” USA Today, Gannett Satellite Information Network, 6 Jan. 2019, www.usatoday.com/story/money/2019/01/04/jobs-report-booming-312-000-were-added-last-month-economists-expected-181-000/2477547002/