The US Economy: Trying to Guess What Happens Next

The US economy relied heavily on its consumers’ willingness to borrow heavily to meet their wants, even as debt mounts. But the recent economic slowdown has dampened the spending spree. Hints of renewed thriftiness in the US contribute to global unease, and pessimists warn of a severe recession, with a plummeting stock market, escalating unemployment and declining value in the dollar. On the other hand, optimists argue that the weak dollar could correct trade imbalances by increasing US exports, resulting in overall healthier global trade. Regardless of the actual outcome, it’s evident that the fates of many national economies depend on the US, whether by currency pegging or trade agreements. Easy credit and money are in short supply, and so the US, other nations and businesses should select carefully among their spending priorities, which could help prevent disarray for individual economies and the global economy as a whole. – YaleGlobal