5 Reasons Why the Economy Will Be Alright, Eventually

More

Here are five ways we could enter a recession, again. And here, via Neil Irwin, are five reasons why that will never, ever happen, knock on wood.

1. Savings. We're reloading our wallets now, as we should. In the short term, that's bad for a consumer-fueled recovery. In the long run, it's good for a healthy and sustainable consumer-fueled recovery.

2. Credit. Banks are easing their lending standards, which presages a recovery for businesses, large and small. 3. Manufacturing. A steadily growing industrial sector is getting some help from healthy global demand. Also, Americans have to start buying more cars eventually. Right?

4. Housing. "With housing starts at such a low level, there's just not much more room for it to hurt growth," Irwin argues. And if you look at a map and put one hand over Florida and another over California, Arizona and Nevada, you're looking at a country that isn't terribly underwater.

5. Trade. Had there been no trade deficit last quarter, GDP growth would have come in at a healthy 5 percent annual rate, Irwin points out. Most analysts expect it to improve next quarter, along with GDP.

Jump to comments
Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Get Today's Top Stories in Your Inbox (preview)

Why Are Americans So Bad at Saving Money?

The US is particularly miserable at putting aside money for the future. Should we blame our paychecks or our psychology?


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

The Death of Film

You'll never hear the whirring sound of a projector again.

Video

How to Hunt With Poison Darts

A Borneo hunter explains one of his tribe's oldest customs: the art of the blowpipe

Video

A Delightful, Pixar-Inspired Cartoon

An action figure and his reluctant sidekick trek across a kitchen in search of treasure.

Video

I Am an Undocumented Immigrant

"I look like a typical young American."

Video

Why Did I Study Physics?

Using hand-drawn cartoons to explain an academic passion

Writers

Up
Down

More in Business

Just In