Sunday, December 8, 2013

Improving economy: Is it for real?

Improving economy: Is it for real?

Can you fault Americans for being skeptical, this time around?
Several recent reports have given a lot of reason to feel optimistic about the economy.
At 7%, the unemployment rate is now at its lowest level in five years. The housing sector -- which got us into this mess in the first place -- is bouncing back.Home sales and prices are rising and permits for new home construction are back to 2007 levels.
Auto sales recently had their strongest growth since 2006. Gas prices have fallen dramatically this year, and stocks are up 26%.
Then why doesn't it feel all that rosy out there?
CNN poll released last week showed only 24% of the public believe economic conditions are improving, while nearly four-in-ten say the nation's economy is actually getting worse. Meanwhile, the Consumer Confidence Index, calculated by the Conference Board, has declined two months in a row.
The economy still feels depressing because for many people, it is, said Elise Gould, a labor economist at the liberal-leaning Economic Policy Institute.
"Those at the very top have bounced back, but we have not seen that for people at the middle or at the bottom," she said.
Stocks may be rising, but only half of Americans actually own them. Sure, companies are flush with cash, but workers' wages are up only about 1% from a year ago, after accounting for inflation. Union-led strikes by fast-food workers are on the rise.
Then there are those who still cannot find work: About 11 million Americans remain unemployed, and 37% of them have been out of a job for at least six months.

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