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Mike Walden: Has the Economy Shifted into Higher Gear?

Posted on Posted in Featured Stories

Mike, there is renewed optimism about the economy going into the end of the year.  The unemployment rate is nearing 4%, a level many economists associate with full employment.  In the two most recent quarters the economy has been growing at an annual rate of 3% or better, 50% higher than in recent years.  And both consumer and business confidence readings are high.  Should we be optimistic?

 

Mike: Summary Answer

  1. yes, I think so
  2. the keys have been continued job growth and somewhat better income growth
  3. have motivated consumers to spend more, which helps business and creates a

virtuous circle

  1. higher stock market has helped
  2. but quick to say – prosperity isn’t everywhere and for everyone
  3. what could tip the apple cart?
  4. stock market decline, overleverage by consumers, foreign even