This is an interesting article which looks at all the main macroeconomic indicators that we are currently discussing in class. Notice that GDP growth, unemployment and inflation are discussed, but that there are also other important indicators included in the article.
Which indicator do you find the most relevant/interesting/intriguing and why?
I find that GDP is the most intriguing indicator because even though we have had the longest growth period over the past 10 years, recent GDP growth has been very little and seems to be slowing down, despite great job growth, low inflation, and low unemployment
ReplyDeleteI find the most intriguing indicator to be the unemployment rate. This can often be an indicator of how well the business's are doing and how confident they are in taking business transactions. Usually if the unemployment rate is high due to the businesses not being able to afford workers, but this has been at an all time low since 2006. This shows just how confident and willing businesses are and are willing to hire more workers, as a result of a healthy economy.
ReplyDeleteIn the third paragraph of the article it talks about the higher wages that have occurred since the beginning of Trump's presidency. This also has the ability to be an indicator. I find this indicator the most complex because even if there is a small increase in wages, that can result in many other improvements; if you will. Higher wages can suggest economic growth as the economy has more money for the wages of employees. It also states that consumer confidence and business confidence has "surged". This means that there's a possibility of economic growth with investments made by firms, and consumption of goods and services by consumers. If consumer confidence is high, then that could also mean that consumers will make investments as well. This could all result in a growth of GDP.
ReplyDeleteI feel that in order for an economy to truly be efficient, than unemployment rate has to be low. An economy needs people to be working in order to produce and grow so therefore I believe that it is the central component to any economy.
ReplyDeleteA factor in this article that we haven't really touched upon in class yet is middle class income, which I believe is very important. When looking at a country as a whole, the middle class is the majority of our population. So their success and high wages should definitely be a focal point to determining the health of our economy.
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