How is the economy? Well? Bad? Why?
The economy is an important part of the everyday lives of citizens all over the world. It affects how much money individuals and companies have, how they live and work, and can even have an indirect effect on political decisions. So, how is the economy? Well? Bad? Why?
Economic Indicators
The state of the economy is measured by a number of economic indicators. These include things such as unemployment and underemployment rates, inflation, GDP, and foreign exchange rates. Examining these indicators, economists can get a better idea of how the economy is doing.
Positive Economic Indicators
- Unemployment is down, particularly in the US where it has been below 4% for some time.
- Inflation is largely under control, meaning things are generally not getting more expensive.
- GDP is growing, indicating an expansion of the economy.
- Foreign exchange rates are largely stable, meaning that money from abroad flows in as easily as money from our own countries.
Negative Economic Indicators
- Underemployment is still high, with many people having to take part-time, low-paid jobs in order to make ends meet.
- Inflation is still a concern, with prices of certain goods and services increasing much faster than wages.
- GDP growth is slowing in many countries as investment and spending falter.
- Foreign exchange rates are volatile, with certain currencies such as the US dollar and the euro having gone through significant swings in recent times.
Conclusion
Overall, it is hard to say how the economy is doing. On the one hand, some indicators such as unemployment and GDP may suggest that things are going well, but on the other there are still some negative economic trends, such as underemployment and volatile foreign exchange rates, that need to be examined. In the final analysis, it is up to policymakers to decide where the economy stands and what, if anything, should be done to improve it.
