When I read in a U-M economic forecast compiled by the Research Seminar in Quantitative Economics that we’re not in a recession, just experiencing slowing in economic growth, I wanted to know the specifics. So I read on until it explained quite plainly what’s holding us back from falling off the edge into a good ol’ fashioned recession. The first thing listed was … a weak dollar?
A declining U.S. dollar has kept our exports rising at a healthy 10.7 percent clip over the past 4 quarters.
Wow. Thank goodness for declining spending power!
Other reasons cited:
- - Temporary tax breaks for businesses and households.
- - The Federal Reserve and U.S. Treasury coming to the rescue a couple times to bail-out some big private banks. (Hey, I just bought a new car. Can you bail me out, too, Uncle Sam?)
For these reasons, we’re OKAY, and doing better than we think. Good to know that what’s keeping us from a “real” recession is nothing “temporary.”
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