Economist (February 11, 2012)
“A new self-assurance has spread through financial markets.” Is this simply the calm before the storm? The U.S. economy is firming, the ECB has eased some worries and there are other positive signs. Yet, the European sovereign debt crisis could still implode and a number of other factors, such as Iran, could wreak havoc with the global economy. “Signs of recovery have multiplied, but the West’s economies are not yet out of danger.” it is too early for celebration.
Wall Street Journal (January 9, 2012)
Unemployment in the U.S. dropped to 8.5%, the lowest level since early 2009. While hopes are growing of sustained recovery, “the country’s prolonged struggle with unemployment will leave scars that are likely to remain for years, if not generations.”
Tags: Recovery, Scars, U.S., Unemployment
The Economist (August 27)
The U.S. economy is missing the usual drivers of an economic recovery, but it is equally missing the usual triggers of a recession. Whether the U.S. double dips or not will depend on the generally competent Fed, an unpredictable Congress and quite a bit on luck. In the end, there may be little difference between weak growth and a weak recession. “Although the absence of obvious imbalances or financial strains does not eliminate the risk of recession in America, it does militate against a long, deep downturn. Indeed, it may be hard for most people to distinguish a shallow recession from lacklustre growth.”
Washington Post (April 15)
Prime Minister Naoto Kan writes thanking the U.S., other governments, NGOs and private citizens for their acts of kindness as Japan recovers from the Great East Japan Earthquake. With over 28,000 dead or missing, Kan’s current “top priority” is bringing the Fukushima Daiichi nuclear situation “under control at the earliest possible date.” Though struck by a staggering earthquake, tsunami and nuclear catastrophe, Kan believes “this difficult period will provide us with a precious window of opportunity to secure the ‘Rebirth of Japan.’”
Wall Street Journal (March 29)
Will the 30% spike in the price of oil hobble the U.S. recovery? This is unlikely. Prices have not hit new highs. They are actually down 30% from two years ago. Moreover, “the U.S. economy is today well-positioned to absorb an oil spike without experiencing it as an oil shock.” The U.S. is 9% below peak oil consumption which occurred in August 2005. In addition, the U.S. has gotten more efficient with the oil it uses. “We’re consuming the same amount of crude oil that we did 12 years ago and real output is more than 25% higher.”
Tags: Efficiency, Oil, Recovery, U.S.
Telegraph (March 28)
“StartUp Britain” is being launched by entrepreneurs for entrepreneurs with the aim of “celebrating, inspiring and accelerating enterprise in the UK.” The Prime Minister is lending support and the new campaign has Government backing. Start-ups and small firms account for nearly 60% of private sector jobs in the UK. Sir Richard Branson writes that “firing up a new generation of entrepreneurs will be a crucial part of our recovery and essential for creating sustainable growth in Britain over the next decade and beyond.”
“StartUp Britain” is being launched by entrepreneurs for entrepreneurs with the aim of “celebrating, inspiring and accelerating enterprise in the UK.” The Prime Minister is lending support and the new campaign has Government backing. Start-ups and small firms account for nearly 60% of private sector jobs in the UK. Sir Richard Branson writes that “firing up a new generation of entrepreneurs will be a crucial part of our recovery and essential for creating sustainable growth in Britain over the next decade and beyond.”
Tags: Economy, Entrepreneurs, Recovery, Start-ups, UK
Independent (March 13)
Around the world, eyes are glued on Japan as it begins to recover from a cataclysm “so powerful it shifted the Earth off its axis.” The front page of the Independent offers support in Japanese and English. “がんばれ、日本。がんばれ、東北。Don’t give up, Japan. Don’t give up, Tohoku.”
Tags: Disaster, Earthquake, Japan, Recovery, Tohoku
Wall Street Journal (August 16)
The U.S is settling into a “new normal” and won’t return to the heady growth that followed other recessions, according to Mort Zuckerman, the editor of US News & World Report. Zuckerman believes 2% growth is more likely than 6% growth. This means predictions that unemployment (currently 9.5%) will fall to reasonable levels by 2013 are overly optimistic. Zuckerman believes it will take 6-9 years because “the labor market may be improving, but the pace is glacial.”
Tags: Economy, Recovery, U.S., Unemployment
Financial Times (August 10)
Germany is staging a strong recovery, both in terms of exports and imports. Germany may well become Europe’s growth engine. There is still considerable uncertainty and much depends on China’s economy, but current predictions suggest “Germany will record its strongest growth since reunification in 1990” during the soon to be released Q2 results.
New York Times (June 29)
The world is “now conducting a dangerous experiment.” An article by David Leonhardt compares current moves to cut government spending and raise taxes with what happened during the Great Depression, when the fragile recovery was upset. Though there are striking similarities, there is room to hope that “today’s situation is different enough to assure a different outcome.”
Tags: Government spending, Great Depression, Recovery, Tax
