The Great Recession occurred 10 years ago, and our economy has rebuilt in miraculous ways. Is there trouble looming?
When it comes to the future of our economy most of us, it seems, can’t let go of our recent experience of what felt like a collapsed economy. We worry about another downturn in the near future. Are there some indicators of trouble brewing ahead?
In the next couple of blogs, I will take a hard look at what might be hidden under today’s veil of prosperity.
If you are reading any articles on today’s economics then you have seen that all indicators say that we are in a booming economy, but is the news reporting all of the indicators?
First, let’s look at what constitutes an economic boom. According to Kimberly Amadeo, president of WorldMoneyWatch.com and author of two books on the economy, says:
An economic boom is the expansion and peak phase of the business cycle. It’s also known as an upswing, upturn, and a growth period. Economic activity rises in the areas of gross domestic product, productivity, and income. Business sales increase, driving up profits. It’s usually accompanied by a bull market in stocks, and a bear market in bonds.
The National Bureau of Economic Research determines when a boom occurs. It uses economic indicators such as employment, retail sales and industrial production. Since 1854, there have been 33 economic booms. They typically last 38.7 months each.
Taking a look at the 3 main areas of economic activity, are we in a boom?
*Gross domestic product (GDP)
All are up. What could go wrong? . . . Plenty!
On August 5th, (2018) the Register Guard newspaper (Eugene) reported that the rate of bankruptcy filings are up. Did you know that 3 times as many people over the age of 65 are filing for Bankruptcy now than they did 27 years ago?
Read on to learn more. These blogs will show you that if you are suffering from economic challenges, that you are not alone! Far from alone!