dy track, it won’t be until a couple of years later that the economy will be moving towards growth such that it would create jobs and resolve the ever increasing unemployment (Perlo, 2012).
The recovery is expected but after two years, and this recovery will continue for a long period of time and even reinforce it eventually (Perlo, 2012). A critical view point to this whole situation is that the profits have been restored at the expense of social benefits and salaries, but it will eventually have an impact on investments resulting in an increase. When looking at the real estate, there has been no new housing construction. But when the up surging demand from family household is considered there is a good chance that there will be a boom in the real estate market in the near future.
One should always be kept in mind when analyzing the current situation of the US that this is the recovery session after the financial crisis, so circumstances are definitely abnormal. As mentioned earlier, job creation is of paramount importance. According to an estimate, over 300,000 new jobs need to be created every month if a significant change is to be observed in the near future.
The FOMC or the Federal Open Market Committee met in August 2012. The statement given in the form of press release suggests that “economic activity has continued to expand at a moderate pace in recent months” (federalresesrve.gov), quite an objective statement but it definitely tells why the word ‘moderately’ has been used here. The economic activity is not that helpful, the other factors have played a part in better results of the recent quarter. However, the economic activity is also not going wayward.
Certain easy money policy tools have backfired for economy. For instance the total income factor (wage rates) has been declining because of the tools that have been used to handle the finances (Mauldin, 2012).