I’m Mary Walden with economist MW welcoming you to the economic perspective. Today’s program asks, why have recession worries eased. Mike, six months ago many economy watchers were very pessimistic about the economy. Several suggested a recession would occur by the end of 2019 or certainly in 2020. Now at the beginning of 2020 we’re not hearing those same warnings. What happened?
Mike: Summary Answer
- First, businesses continue to hire – puts income into consumers’ pockets
- Second, optimism on trade – USMCA, China initial deal
- Third – Congress can work – passed spending bill that will avoid a government shutdown
- Fourth – indicators that have lagged – confidence, home sales – haven’t sunk
- Fifth – stock market records – wealth effect
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.