ECON Forum Replies
Forum Reply 1: 150-200 words with references
Discussion.
Go to the internet and find a news article(s) published within the last month that discusses U.S. short-term and long-term economic growth, summarize key points of the article using macroeconomic terminology, and post your response in the Discussions area.
In the news article I sourced from the Forbes Magazine website, staff writer Sergei Klebnikov summarized and highlighted notable results from a survey of economists conducted by the National Association for Business Economics (NABE) (2020). Regarding short term economic growth, Klebnikov summarizes that two-thirds of surveyed economists believe that the U.S. is still in a recession with a majority believing it will end in 2020 or 2021 (2020). Regarding long term growth, Klebnikov writes that more than half of those surveyed believe that “say that the U.S. job market won’t recover until 2022 at the earliest.”, the same timeline that about half of surveyed economists believe it will take for U.S. GDP to recover to pre-pandemic levels (2020).
What I learned from this assignment was how economists view the United States’ recovery protected in the light of COVID-19. I feel that the consensus views hold more authoritative weight than any individual’s projections. In my personal life the way I think I can act on this information is to take a longer-term perspective of the U.S. economic recovery measured in years instead of months.
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Forum Reply 2: 150-200 words with references
Discussion.
Go to the internet and find a news article(s) published within the last month that discusses U.S. short-term and long-term economic growth, summarize key points of the article using macroeconomic terminology, and post your response in the Discussions area.
The article I selected touched on how COVID19 is affecting U.S. economy. In the short term the COVID19 pandemic has forced the U.S. into a recession and the long term affect could be detrimental to U.S. economic growth. Due to the high probability of the virus re-surging business owners and investors are least likely to expand and pursue new business which in-turn there will be a reduction in job creation. Many researcher recommend drastic measures to boost the economy. One idea to to make policies to reduce business debt to prevent bankruptcies which will further cripple the economy. Some think that this is only a short term fix but the authors states, “Wiping out 10% of firms’ debt, for instance, would save just 1% of GDP in 2020, the authors estimate – but the value of those savings is estimated at about 11% of GDP if the long-term consequences are taken into account.”
From this assignment I learned that the saying “scared money don’t make money” is true. Due to the unforeseen losses businesses had to endure because of the virus, owners are now scared to invest or expand. The unknown is forcing them to be extremely cautious with their money. Everyone is in survival mode and is not focusing on gains but are focused on maintaining. The things I learned from this assignment that I can apply to my everyday life is the small thing that I’m doing to invest in me today that seem so trivial can and will impact me in the future.
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