American Economy Sees Only Modest Growth

The U.S. economy has seen modest but consistent growth over the last quarter, up to a 2% annual rate from a 1.3% rate in April-June. The climb is a result of increased spending by both consumers and the federal government. Still, job creation remains low.

The upcoming elections have much to do with the future of America’s economy; Republican nominee Mitt Romney is known for his attacks on President Obama’s approach to the economic crisis. Growth has indeed slowed from last year, but Obama insists that it is growing steadily.

Meanwhile, analysts have yet to express optimistic outlooks.

Paul Ashworth of Capital Economics said: “We suspect that growth will slow a little in the fourth quarter, and expect it to remain close to 2 percent next year.” explains:

“The economy grew faster last quarter in part because consumer spending rose at a 2 percent annual rate, up from a 1.5 percent rate in the second quarter. Spending on home building and renovations increased at an annual rate of more than 14 percent.”

It adds that “federal spending surged, mainly because of the sharpest increase in defense spending in more than three years.”


U.S. Tax Increase in 2013- Pros and Cons

President Obama is toying with the idea of increasing taxes in 2013, despite his previous disapproval of the idea back in 2010.

David Gregory of Meet the Press discussed the move and its potential effects on the U.S. economy with Senator Dick Durbin and Senator Jon Kyl in a program last night.


Watch the full debate here on

October: Largest Job Creation Month

Good news for an American economy that needs something positive.  According to the U.S. Labor Department, the American economy had the biggest job creation that it’s had in five months during October.  Economists were cautiously optimistic with this news.  As Carl Riccadonna, an economist at Deutsche Bank said, “This is not a gangbusters report, but it is very important. It shows us that the momentum in employment is building.”

In a White House statement, President Barack Obama said that the jobs report is “encouraging news” and he encouraged both Democrats and Republicans to propose more ways to boost the economy.