With the last three months jobs reports coming in lower, or far lower than expected,
are fears of double dip recession rightly justified, or unfounded?
With May’s job reports from the Bureau of Labor Statistics of 69,000 non farm jobs added, April’s report of 77,000 jobs added, and March’s report of 154,000 jobs added, some are asking if a double dip recession is on the way. When natural population growth is factored in, the numbers are not strong. While there is no solid evidence that a double dip recession is in store, there are some signs that expecting strong growth is certainly not the best bet.
One of the strongest signs that expecting a strong economic rebound may well not be a good bet is the current slow economies of other countries around the world, most especially in Europe. Greece, Spain and Portugal all either have serious economic issues or weak growth. The economies of China and India have slowed down in the past year. The stock markets of some of these countries may be negatively affected by the slowdown.
A slowdown in world markets, if anything, will be a drag on U.S. markets and the U.S. Economy, since imports will be slowing in those countries and therefore will negatively affect U.S. exports.
Due to some of these issues, while a double dip recession may not be in store, there appear to be viable reasons why strong growth in the United States will be less likely and more difficult for U.S. politicians to create.
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