WSJ: Evaluating the Recovery
U.S. Chamber SBN
Today's Wall Street Journal takes a look at the nation's economic recovery. According to the article, since the recession ended in 2009, the economic recovery has been one of the worst since the government started studying such figures following World War II.
Below are some interesting points and snippets:
- This recovery closely resembles the recoveries of the 1991 and 2001 post-recession periods in that the economy has experienced very gradual output growth versus sudden surges.
- Recovery may remain slow for years due to heavy household debt, a financial system still healing from the mortgage crisis, low confidence, and few government options for sparking growth.
- Exports of manufactured and agricultural goods are improving thanks to growing developing-country economies and a weak dollar.
- Banks are lending less than before the recession.
- Household debt may be the biggest obstacle. In 2007, homeowners had collectively borrowed 127% of their incomes to fund purchases of homes, cars and other goods compared to an average of 84% in the 1990s. This means they'll have less money to spend in the near future while paying off their debts.
What do you think? What else could be contributing to the slow recovery? What are you doing, as a small business owner, to ensure your business remains profitable?
Read the article here: http://online.wsj.com/article/SB10001424052702304760604576425793342142396.html?mod=WSJ_hp_mostpop_read







