Viviana Duran 3578
AMM 155 0088
April 02, 2007
First Draft Article #2
Some Signs of Economic Resilience Seen
Jeremy W. Peter’s article on the economy is somewhat positive. The article is
based on information Peter used from the Federal Reserve. I have a healthy skepticism
regarding them, particularly on how the federal government has lately been putting spins
on serious issues. Happy, smiling faces were seen while many were left in appalling
conditions after Hurricane Katrina and when the government has given press conferences
on the situation in America. It is my frank opinion that one should take the information
given by the federal government or anyone else with a grain of salt.
The economy seems to be expanding but it is at a slow pace. It is faster than what
was predicted by economists. The question I have is how the economy is measured. What
is the rate of expansion and growth that would be considered healthy? It is true that the
economy expanding is better than it shrinking but just because it is expanding, does that
mean the majority of Americans are doing fine?
There is job growth but what kind of jobs are growing? The jobs being created,
are they capable of supporting a family of four? Do the jobs require more than forty hours
a week? What are the benefits such as medical that are offered? These are the kinds of
questions that have to be asked. The article does highlight some positive things about the
economy. Stock prices are rising and so is investor confidence. Employees saw a rise in
their wages. The article does not detail how much of a rise or whether the wage they were
receiving previously was able to adequately support them. It is this spin that I find
misleading, bordering on outright lies.
The main point of the article is about inflation and its relation to actual prices
consumers pay for goods. Businesses did not raise their prices for goods and services and
this is good news for consumers. Businesses were also having problems finding workers.
This is great for working and job hunting people. Wages are up, and the costs of some of
Americans living expenses are down.
There is even demand for skilled workers. Manhattan, not surprisingly, is still
seeing a lot of activity in real estate. The real estate market was especially strong in
Midtown and Lower Manhattan. These two areas have recently had low vacancy rates.
This benefits investors and people with upper incomes. The downside is that usually
small mom and pop businesses and working people are gentrified out of these areas.
I learned that the economy is interrelated by the development of economic and
manufacturing growth in various states. I still think the Federal Reserve and Peter are
downplaying the fact that Americans are facing a recession. The article is interesting
because it gives a picture of the conditions of the economy in America. The current
administration is notorious for putting a happy face on grave situations. I believe we
should hope for the best but begin preparing for the worst, and I understand why the
Federal Reserve underwent the study to find the information about where our economy is
handed toward in the future.