Interconnected Consequences of Economy

Posted by George Brook February 6, 2013 0 Comment 418 views

Imperative to the health of an increasingly high-tech economy, the stock market permeates even the mundane spending of average people, even if they don’t live in the same country. Slowly recovering, the global economy is encouraged by consistent upturns in the Dow Jones Industrial Average, as well as the S&P 500, as demonstrated by surprisingly high closings on the 29th of January.

CNN Money reported an important jump in the American housing market on the same day; a 10% increase in the profits of builder DR Horton and an overall increase in home prices. This is especially meaningful to investors with the potential to boost the economy because the U.S. housing market crash in 2008 is commonly attributed as causing the global recession. Bloomberg ‘Money’ lists stock market indicators in America alongside those in Europe, the Middle East, Asia and the Eastern Pacific for Tuesday the 29th in a favorable green lettering portraying their increase, except for one prominent red, almost flat NASDAQ Index.

Increases in the stock market directly affect consumers of everyday items, especially from multi-national corporations like Wal-Mart, Toyota, or Coca-Cola. Despite recent concerns that government spending would plunge the world economy into depression or recession again in 2013, investors are steadily re-building confidence in the market, profit is increasing, and capitalism in America remains largely well-to-do. Eventually, this profit will manifest itself as lower product prices, more jobs and better services for Americans, and other affected countries.

With high year to date changes in all indexes, even NASDAQ, (according to Bloomberg and CNN Money) it’s no surprise the economy is called ‘recovering’ by many. But is this a hopeful generalization, or a fact? The global recession affected more than just America, but growth anywhere, especially since the housing market collapse started (in a way) with American investments, improvement there is a major step on the way to worldwide stability.

Economy is a complex issue, with many factors contributing to its strength and health. The Bureau of Labor Statistics released information in early January detailing figures for late 2012, and while the unemployment rate in America did not decrease (it maintained), the Consumer Price Index mostly maintained in the final months of 2012 as well, creating a fairly stable environment for the turnover of a new year. Overall, the changes depicted by major economic indexes and indicators seem to demonstrate recovery and give a positive outlook to 2013 for the American economy. The most current Dow and S&P increases paint the most favorable picture, but are also the most likely to waiver under pressure and decrease again, partially due to technological advancements that allow instantaneous communication of financial information both conducive and harmful to a steady world market. Let’s hope America’s economy, and thus the world economy, can push past the boarder of ‘recovering’ to be ‘recovered’ in 2013; for everyone’s sake.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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