By Aspen Johnson
A new year, a fresh start. That’s how each and every year starts. It’s a fresh slate for everyone to get back on track. Start new things, do things over. For everyone that start of a new year can be a very good thing. But what about the economy? What does the new year hold for the economic state of the United States of America? There are different outlooks for the economy. 2014 can be a bad year for the United States and many people should be worried or 2014 can turn for the better and people can feel safe and secure. It is only the beginning of January and there is a long year far ahead of us.
First let’s start off with the possibility of 2014 being a bad year. There is always the possibility of a certain time being bad. The risk of a year being bad is always present within an economy and it can’t be helped. Different decisions and influences can help make a year bad. According to USA Today there are several different risks that could show that 2014 will be a bad year. The first one is the debt ceiling that is still ever looming. According the site “there may be another showdown over the debt ceiling” (USA Today). If there is another stall with the debt ceiling at the US capital I may show more of how the government isn't able to come to an agreement with each other and show more of a childish nature to the other countries. Another risk, according to USA Today, is that investment is low. The spending for business has “plunged to near zero by the third quarter from a double-digit pace in 2010 and 2011, helping to fuel a $2.2 trillion "investment gap,'' of money not spent since 2007” (USA Today). While this can be a problem the website says that the “problem may evaporate by the second half of the year” (USA Today). This isn’t a big concern but with it only being the beginning of the year it could become something bigger.
But with the risks there are also going to be the good parts of the year. Another website called The Christian Science Monitor shows that there are going to be several upbeat predictions for the New Year. One thing that The Christian Science Monitor predicts will happen is that the GDP will grow within 2014. GDP growth is very good for the economy. According to the site it says that “IHS Global Insight's chief economist, Nariman Behravesh, forecasts 2.6 percent GDP growth; analyst David Berson at Nationwide Economics predicts 2.7 percent growth” (The Christian Science Monitor). If these two respected men have similar predictions then it should show that the GDP growth is something to pay attention to and look forward to. The few things that will help with GDP growth “will come from lower oil prices, improved international growth, rising household net worth, and less fiscal drag” (The Christian Science Monitor).
Another prediction that was made on this sit is that the unemployment is predicted to go down. For 2014 the prediction rate is supposed to be down “as low as 6.3 percent” (The Christian Science Monitor). The FED had once predicted at only 6.4 to only a 6.8 percent low (The Christian Science Monitor). This is a great difference even though it doesn’t seem like much. A lower unemployment rate means that there is going to be more jobs are going to be available for people. More jobs equals more of an economic boost because people are going to be able to earn more money and even be encouraged to spend more and put more back into the economy.
There are going to be many sites that have different sayings, opinions and predictions on what 2014 is going to be like. One place says that “The U.S. economic outlook for 2014 is grim. In 2014, investors should be very worried—and they should be prepared” (US Economic Outlook) while another says that “Risks remain in 2014, too, but we give them relatively slim odds” (Kiplinger). The year is still young and there is always room to change and develop and be a good or bad year.
Works Cited
"Economy 2014: Hoping to make a great step forward." USA Today. Gannett, n.d. Web. 8 Jan. 2014. <http://www.usatoday.com/story/money/business/2014/01/03/2014-us-economy-outlook/4030901/>.
Velasco, Schuyler. "Predictions for 2014 economy? Here are five.."The Christian Science Monitor. The Christian Science Monitor, 26 Dec. 2013. Web. 8 Jan. 2014. <http://www.csmonitor.com/Business/new-economy/2013/1226/Predictions-for-2014-economy-Here-are-five>.
Conerly, Bill. "Economic Forecast Update, 2013-2014: Light-to-moderate Growth." Forbes. Forbes Magazine, 19 Mar. 2013. Web. 8 Jan. 2014. <http://www.forbes.com/sites/billconerly/2013/03/19/economic-forecast-update-2013-2014-light-to-moderate-growth/>.
"Kiplinger's Economic Outlooks." www.kiplinger.com. N.p., n.d. Web. 6 Jan. 2014. <http://www.kiplinger.com/tool/business/T019-S000-kiplinger-s-economic-outlooks/>.
"US Economic Outlook for 2014 | US Economic Forecast 2014." US Economic Outlook for 2014 US Economic Forecast 2014. N.p., n.d. Web. 6 Jan. 2014. <http://www.useconomicoutlook2014.com/>.
Aspen,
ReplyDeleteWhile reading your post, I had hoped you would have included your own prediction as to how the US economy will turn out in 2014. Predicting the economic condition of a country 1-year in advance is like making a weather forecast 1-year in advance. Nobody is going to hold you to it!
Thank you!
Mr. Batterman
I liked your post, but I do agree with Mr. Batterman. I do find that your logic is understandable and I do agree with you that our deficit that we owe to other countries is to a point that we really can't help it. That our GDP is increasing in a good way, but its not going to be good enough to support jobs in the U.S. and secure Americans jobs.
ReplyDeleteThe new year is a good time for most people, and it brings new possibilities for everyone. It's true that there are going to be risks included in 2014 but along with the risks there are going to be good things going for the economy. I would pretty much associate these concepts with every new year that approaches. I think the rising GDP and job increase will be good for the economy yet not quite enough to have the best economy we can have.
ReplyDeleteI agree that every new year is a clean slate to start over, and I never realized that the economy really never gets that clean state. I enjoyed reading about what it was, but I agree with Mr. Batterman when he asks for your own opinion. Hearing what you think could happen to the economy would be more interesting to learn about.
ReplyDelete