Stock Market - up!
Unemployment - low!
Wages - up!
GDP - Up!
2006-12-10 05:43:14
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answer #1
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answered by Uncle Pennybags 7
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Interest rates are usually a decent indicator that anyone can use to estimate the relative strength of the economy. Generally when interest rates are low, it's because the economy has stagnated and the fed wants people to borrow borrow money and participate in the economy. When rates are high it means that people have a lot of discretionary income and are participating in the economy too much. The fed wants less people to borrow money in order to curb inflation.
There are a lot of other factors but a general rule of thumb is high/rising interest rates = strong economy... low/falling interest rates = weak economy
Also, the natural rate of unemployment according to economic theory is somewhere around 5%... so if unemployment is below that then we are doing pretty good and vice-vera
2006-12-10 14:53:17
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answer #2
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answered by Ilikepie 2
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Not sure if you're asking WHY it's strong or WHETHER OR NOT it's strong.
If you're asking why the US economy is perennially strong, the answer is free markets, rule of law, property rights, comparatively little red tape and government intrusion, large population, lots of natural resources, and a widespread individuality, creativity, independence, and confidence among the people -- things which unfortunately you do not see much of in Europe or Japan.
2006-12-10 15:26:48
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answer #3
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answered by KevinStud99 6
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is it strong? where are all the manufactory jobs? i lost mine after 30 yrs...having a very hard time...to old and tired to learn anything else....
2006-12-10 14:18:03
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answer #4
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answered by rev. needy 4
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