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5 Signs the U.S. Economy is Moving in the Right Direction

by on June 14, 2012

By Samantha Savory

So many Americans are finding themselves buried in debt and under-employed, or even worse, out of work all together for long periods of time.  The U.S. economy has come a long way since the recession hit in 2008, but many Americans are still struggling to live and are looking for better days. Today we are spotlighting some positives that the current economy has to offer with the hope that this will give someone a brighter outlook on the future prosperity of both the economy and their personal financial situation.

1. Gas prices are at a 3-year-low – This couldn’t have come at a better time! Summer time is in full effect and you know what that means, vacation time! The Associated Press just reported that gasoline prices dropped nearly 9% this week, the lowest it has been in almost three years. With gas prices dropping, the cost of our foods and other goods will hopefully drop in price as well, or if anything, at least not increase.

2. Added U.S. job numbers are in the black – Any accountant can tell you being in the black is always better than being in the red, or the negative. For the month of May, 69,000 new private sector jobs were created in the economy.  Is that number amazing? Not exactly. Let’s focus on the positive for a moment; manufacturers added 12,000 jobs, transportation and warehousing created nearly 36,000 and even education and the health care sector added new jobs. Many economists say that it took the U.S. economy 10 years to get into a recession, so it only makes sense that it will take longer than three years to get out of it.

3. Mortgage interest rates are at a 30 year low – This can be both good and bad. It’s bad because it proves the economy is not recovering as fast as most people were hoping for, but again, let’s focus on why it’s good: this is a great opportunity for Americans to buy their first home!  Average rates for a 30-year fixed-rate mortgage are around 3.88 percent, which could save a new home buyer thousands of dollars.

4. America’s saving rate is improving – The Washington Post recently reported that American households are continuing to pay off their debt and save more money leading the savings rate average to 4.5 percent.  This is great news and one of the foundations of having healthy personal finances!  PowerWallet can help you plan and save easier — visit www.powerwallet.com to sign up for free and start increasing your savings fund today!

5. Bush tax cuts are gone – The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) are the tax laws that George W. Bush implemented as president which lowered tax rates for people making over $250,000 per year. Now that these regulations have expired, the federal government is taking in additional revenue of over $274 billion per year. This is great because it is money that can be put back into the federal government to help improve the economy, pay down the deficit, help rebuild damaged roads and bridges and provide more government jobs. Without getting all political, yes, seeing that huge chunk of your hard earned money taken out by Uncle Sam every two weeks is painful, but it’s a part of being American. And luckily the expiration of these acts are affecting people who can still live a luxurious lifestyle with or without the extra tax deductions.

Tell us in the comment section your thoughts on today’s blog post — do you agree? Have you noticed other positives in the economy that are not included in this article? Share with us below!

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From → Money Management

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