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Thursday, June 9, 2016

Economists Believe there are Four Risk Factors to the U.S. Economy

A poll of economists conducted by the Wall Street Journal found that there are 4 main risk factors for the U.S. this year. The poll solicited the opinions of 70 business, academic, and financial economists but did bring forward some fears of China, Slack Business Investment, U.S. Politics and Stall Speed.

China: Chinese debt to prop up their economy might come crashing down. Economic collapse in the worlds second largest economy could cause problems else-ware.

Slack Business Investments: Slow business investments in equipment and people slowing the economy.

U.S. Politics: U.S. politics are so brutal and squirly that it has an impact on the economy.

Stall Speed: When the economy is moving so slow it simply stalls down due to a host of reasons.

The factors that can create a slow down are many. However, very few single factors can cause a recession unless they are fundamental to the national and global economy. These might include a financial meltdown or a large scale conflict that disrupts international commerce. The article puts the risk factor of a slow down at around 21%.

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