allaboutwomen

As we reflect back on 2010 and thinking about what lies ahead for the U.S. economy in 2011. There are no shortage of optimism of Wall Street analyst and Economist, the U.S. economy continues to expand and recover in 2011. This optimism comes along with the improvement of the economic factors that have been a number of months on the rise. As a result of better economic news of the Dow Jones industrial average recently concluded at the highest level since June 25, 2008. Some of the containing positive economic news; increasing lending, lower "initial" unemployment insurance claims, rising durable goods orders, increasing US exports and increased retail and auto sales. Consumption growth is one of the most encouraging and important pieces of good news.

The importance of consumer spending:

The economy is measured by the GDP (gross domestic product). GDP is defined as the total market value of all final produced goods and services in a country (in a given year) equals the total consumer, investment and Government spending and the value of exports minus the value of imports. The United States has the largest GDP of a country with approximately $14.75 trillions of dollars. In the past, the GDP was about 2.5-3% per year. Some analysts speculate that US GDP by as much as 3-5% growth in 2011. Increased projections in 2011 U.S. GDP growth is due partly renewed spending by consumers. Consumer spending accounts for about 65-70% of GDP. In December 2008 consumer spending went up $9.9 trillion from over $10.2 trillion (six months ago). Published a report last month (12/23/10) consumer spending set at $10.52 trillion. This is good news for the stock market and the economy! At the same time, while consumers verdinglichten expenses in 2008 were, they started paying debt. Total consumer debt (revolving and non-revolving) decreased $ 2.6 trillion in 2008 to approximately $2.4 trillion in December 2010. The Federal Government realized how important consumer spending growth. So much that in December 2010, the President and Congress agreed to reduce the staff part FICA (payroll tax) for 2011 by 6.2% to 4.2%. Employees should see immediately increase a bottom line in their paychecks. The Government hopes the wages spent in the economy, rather than down consumer debt to pay. As a result consumers more spending came increased in the retail store sales, auto sales, sales tax (for countries that have sales taxes). The Commerce Department reported in December 2010, retail sales at stores by car dealer up to grocers rose by 7.9% from one year and total sales your pre-recession peak exceeded. While most economists are downplaying the likelihood of a double dip recession, no one would deny, there are some "headwinds" before the U.S. economic growth. These pitfalls include the European debt crisis, high oil prices stagnant housing market and high unemployment.

Current situation of unemployment:

The current unemployment rate at 9.4%, reduced from 9.8% in December 2010. Before the recession unemployment was around 4.2%. The recent reduction are generally well occurred during the reduction in the unemployment rate because people was discouraged and stopped looking for work. When this happens, those individuals in the unemployment rate counted are not. There are currently approximately 14.4 million officially unemployed people, but the number of actual unemployed 25.6 million people is closer. High unemployment is obviously an anchor on the economy. Currently there are to create approximately 200,000 jobs per month about 311 million people to to keep up with population growth and unemployment to pre-recession levels must reduce the economy USA. In 2010 the economy on average created approximately 94,000 jobs per month. Of course, this is better than lose jobs every month, but it's not good enough to promote a healthy and vibrant economy. Economists expect accelerated employment sometime in 2011. While time will tell whether 2011 lives up to all the optimism, there is no doubt that the U.S. economy has survived the brink of disaster. But let us make sure that once the economy back on "Stop", must the USA the growing national debt, which is more than $14 trillion. Click the link for the debt clock: http://www.usdebtclock.org/#.