Econ Info

On any given night when you turn on the television or get on the internet, you’ll be overloaded with information about different sectors of the economy and how it’s performing as a whole. It’s easy to get lost in all of the economic news, especially when you don’t even know what’s important and what’s not. Here’s a quick look at the basics of the economy and what you can expect in the near future.

Jobs

Employment is the most important issue concerning Americans today. Without real job growth, the housing crisis and foreclosures will continue into the near future. As of today, 33 states have run out of unemployment benefits although a bill has been passed extending the period. Personal income rates have dropped in 42 states, and Alan Greenspan believes unemployment rates will grow to above 10 percent. It is currently just below those levels now. Despite hiring on many part-time census workers, the employment picture continues to be weak and only a slight recovery is expected for the rest of the year.

Health Care

Despite a heated debate in both houses, the final version of the health bill has yet to materialize. The main objectives of the bill force health insurance companies to take on new patients regardless of preexisting conditions. It is also attempting to introduce a mandate that forces all citizens to have at least some form of health insurance or to pay a yearly penalty. Some health insurance companies have reportedly already found loopholes in the system that will allow them to deny coverage, forcing lawmakers to rethink the final bill. Nothing has been agreed upon despite much time spent on its legislation.

Housing

Thanks to the homebuyer tax credit, where new homebuyers would receive an $8,000 tax credit and those upgrading could receive $6,500, housing sales showed stronger first quarter results. The tax credit expired April 30, forcing many to move quickly to take advantage of it. Foreclosures also dropped in more than half of the country’s worst hit spots, a possible signal that the housing market is finally reaching a bottom. Home values also saw a slight increase in 10 major metropolitan areas. The real question is whether this uptick in home buying activity can continue.

National Debt

At the writing of this article (April 30, 2010), the national debt clock is officially at $12,902,913,650,000.00. That translates to roughly $41,735 per citizen, or $117,318 per taxpayer. United States federal spending is at $3,553,682,902,xxx.xx and the budget deficit is at $1,425,555,129,xxx.xx. In short, that’s a whole lot of money we don’t have. With our manufacturing base moving overseas and corporate hiring continuing to slow, it will be a long time before we ever see a surplus again if ever.

Stock Market

Despite the turbulent economy and the U.S. emerging from the most severe recession it’s ever experienced, the stock market is doing quite well with the Dow Jones Industrial Average having just recently broken through the 11,000 mark. The S&P 500, which tracks the top U.S. companies, is also performing well at 1,187 at last check. The Nasdaq is at 2,461. Despite how the economy is performing as a whole, it’s best to remember that all markets and economies are cyclical. By being diligent about saving and investing, you’re likely to come out on top once the greater economy recovers.

Tags: Economy