Friday, February 20, 2015

2015 Economic Report to President Shows Improvement with Concerns

We are all impacted by the economy in one way, shape, form or another. Economics determines whether we can find a job, how much we will be paid, or whether or not you are able to afford a new car. The science of economics helps us explain and predict events in our environment that lead to stronger fiscal policy. The 2015 Economic Report to the President outlines a growing economy in terms of jobs, debt, energy, and exportation. Despite the positive news there is much more work to be done realigning the economy to sustainable growth and development.

At our worst point in 2009 we were loosing 424,000 jobs a month and are now gaining 260,000 jobs a month leading to lower unemployment rates and a stronger job market.  Debt ratios have been improving by dropping to 9.9% of disposable income leaving more money in the hands of people. More jobs and more spending capacity are a benefit to future economic growth even though wages haven't risen yet.

Oil production is increasing while oil consumption is decreasing. This is changing the overall value and cost of oil. This is good news if we consider the family costs of heating homes and running automobiles. It also means the U.S. is adapting more environmentally friendly technology and reducing its reliance on foreign oil.

Export intensive wages have improved 17% from a few years ago. Renewed focused on developing high value export oriented companies helps in raising wages as well as improve the national economy. Developing stronger export oriented processes fosters export expansion and furthers economic reach. That reach is important today in a world that needs U.S. leadership.

The economy has come a long way in the past few years but renewed effort will help to keep it moving in the right direction. We are in a period of transformation that may take a decade or more to play out. Making sure that policy is focused on strengthening investment in advanced and export driving businesses helps to put people to work at a higher wage than what might be found in other industries. Lawmakers should consider this national need when making local and state decisions that either encourage or discourage alignment to the global market.

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