The recovery in the economy has been reported to have experienced a bump this is evident from the report on the rate of jobs going down in May and it is causing the business community to be amazed if there is another economic recession. Though the government is adamant that there is not going to be another recession, for businesses especially those small sized ones are getting different signals that the economy is recovering at a low rate and they are not been able to make good sales it sure seems like another economic downfall is here with us. Recent data has shown that the economic recovery is experiencing bumps, whether these bumps are signs of bad economic times we are yet to find out. Stores are experiencing bad sales, there seems to be slow movement on stock and the business owners are complaining that they are not making sales and they have to watch their inventory so that they do not end up having a lot of capital held up in stock. Stock markets are also not doing well the stock prices on shares are declining. Treasury bonds are also at their lowest value as people are shifting to more sure means of investment and saving. The manufacturing index has fallen greatly in May as compared to reports in April. The experts are referring to it as another soft patch towards the recovery of the economy. The president though has assured Americans that the economy is not headed towards a recession. On employment, the report is quite alarming on the job opportunities created in May which went down from 177,000 jobs created in April to only 38,000. One business owner says that he would like to employ one or two more employees but he can’t because he does not afford to pay them, so what they are now doing is working more hours to cover the uncompleted work. The unemployment rate has increased and it is now at 9.1 percent and it is feared that this is likely to increase in the next months as more and more people have no jobs and money to spend. Due to a lack of money and jobs for people, there is very low spending of money. Goods are not being bought and people are cutting on their costs and only spending to get the basic needs. Also with the rise in fuel prices and the increase in goods more and more people are putting on their spending and trying to spend on only basics. Although the signs are predicting the downfall of the economic experts are optimistic that the economy is not headed for another recession and that it is only a small bump that will come to an end and the economy will return to its path of recovering.
Category: Economics Essay