Economic Advisement Paper
Economic Advisement Paper
Jeff Green, Karsten Hansen, Ashley Ingersoll, Lisa Nevins, & Cynthia Novak
August 26, 2013
ECO/372
Jack Karczewski: Facilitator
University of Phoenix
ANALYSIS
Unemployment
Since January 2009, the unemployment rate of the United States skyrocketed. This started when a large amount of business fell into hard time. Our January 2008 unemployment rate was at a 5.0% and the next year unemployment rate increases to a 7.8 % for the nation (“Board of Governors of the Federal Reserve System,” 2013). There is a large statistic which shows that people between the ages of 16 to 24 are the most affected by long-term unemployment. Due to age, experience, and long periods of time being unemployed when looking for a job, these people get over looked This is also because there is almost always someone out there that has more experience and above the age of 25. There are some long-term effects that are caused mostly in thanks to the long term of unemployment from “ballooning student loan debt and fail to save adequately for retirement” (Ayers, 2013). Even with all the increase in unemployment over the past few months America has seen a decrease in the percentage of unemployment (Ayers, 2013).
Expectations
In the current state of our economy, the expectation of consumers appears to be evolving from substantial fear of rising prices and difficulty obtaining credit to a more optimistic future outlook, although remaining cautious. Consumers have begun spending rather than primarily saving. This has moved the Aggregate Demand curve slightly to the right, from previous years. Rises in median home prices and reductions in foreclosures and unemployment appear to be affecting the consumer mindset in a positive way. Recovery is in progress and a balance of the economy is underway.
Consumer Income
Consumer income affects the economy through consumer spending. When consumers have more they can feel comfortable spending more. In times of economic
Jeff Green, Karsten Hansen, Ashley Ingersoll, Lisa Nevins, & Cynthia Novak
August 26, 2013
ECO/372
Jack Karczewski: Facilitator
University of Phoenix
ANALYSIS
Unemployment
Since January 2009, the unemployment rate of the United States skyrocketed. This started when a large amount of business fell into hard time. Our January 2008 unemployment rate was at a 5.0% and the next year unemployment rate increases to a 7.8 % for the nation (“Board of Governors of the Federal Reserve System,” 2013). There is a large statistic which shows that people between the ages of 16 to 24 are the most affected by long-term unemployment. Due to age, experience, and long periods of time being unemployed when looking for a job, these people get over looked This is also because there is almost always someone out there that has more experience and above the age of 25. There are some long-term effects that are caused mostly in thanks to the long term of unemployment from “ballooning student loan debt and fail to save adequately for retirement” (Ayers, 2013). Even with all the increase in unemployment over the past few months America has seen a decrease in the percentage of unemployment (Ayers, 2013).
Expectations
In the current state of our economy, the expectation of consumers appears to be evolving from substantial fear of rising prices and difficulty obtaining credit to a more optimistic future outlook, although remaining cautious. Consumers have begun spending rather than primarily saving. This has moved the Aggregate Demand curve slightly to the right, from previous years. Rises in median home prices and reductions in foreclosures and unemployment appear to be affecting the consumer mindset in a positive way. Recovery is in progress and a balance of the economy is underway.
Consumer Income
Consumer income affects the economy through consumer spending. When consumers have more they can feel comfortable spending more. In times of economic
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