http://biz.yahoo.com/ap/070905/un_us_economy.html?.v=2
Why do you think so?
2007-09-05 05:42:28 · 9 answers · asked by Jennifer 5 in Politics & Government ➔ Government
Mainly there isn't any appreciation in homeowner equity that would normally fuel refinancing to fund big-ticket consumer purchases like home expansions, travel, new TVs, etc. I think this plays a part in reducing the overall spending of the population.
Secondly, so long as the dollar keeps falling and other nations offer lower corporate tax rates, people who are looking to start up a new business will locate in the place most favorable to them. We try to lower corporate taxes through loopholes, rebates, subsidies, etc... but that only benefits a few politically connected companies. A new start-up is better off going to one of the EU nations with a 10% corporate tax rate and enjoy the fact that the Euros keep going up against the dollar.
2007-09-05 05:54:26 · answer #1 · answered by freedom first 5 · 2⤊ 0⤋
As the article states, the US housing market is one of the primary reasons. In recent years, there was a strong demand for new houses -- now there's a large supply of them and it's harder to keep selling them. Also, many of the people who were buying big new houses a few years ago are now realizing they couldn't actually afford them, and are further flooding the market with slightly used houses as they try to downsize. New homebuyers are trying to find cheaper houses than they were a year ago.
In short, a lot of money has been poured into expensive houses, but that investment isn't moving anywhere because people are reluctant to spend that kind of money these days. Reluctance to spend = slower economy.
2007-09-05 05:54:26 · answer #2 · answered by Mike G 6 · 0⤊ 0⤋
Because our government is so busy helping everyone else on the planet they have no time or money to be bothered with the problems in this country.
People's wallets do not have a lot of extra spendable income; therefore products and services that they would have purchases sit.
There is no money to fix our problems ; according to this administration. We need to save the world. Hard to do when some of your allies are harboring terrorists, don't you think?
Look at the Katrina aftermath. How fast was the government then? Education - lacking funding. Immigration - out of control. Build a big wall - ha ha. How high? Ever hear of digging under it?
2007-09-05 07:07:26 · answer #3 · answered by Dragonmistress 3 · 2⤊ 2⤋
It is impossible to continue the sustained growth that we have experienced for the past 7 years. The economy will slow from time to time. It is only a temporary slow up though, as the economy will continue to push forward through the troubled times.
2007-09-05 05:49:58 · answer #4 · answered by mustagme 7 · 1⤊ 2⤋
that particularly relies upon on how extreme the elections are because of the fact if one section is assure a land slide win there is should not be a decelerate, yet in this years election the place they are neck to neck specific it is going to slowdown because of the fact human beings giving them money and that they are certainly making use of it putting greater money into flow
2016-10-04 00:55:10 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Economics is a cyclic wave, it has ebbs and tides that are deep and shallow, it needs to feed and eat before it can crap out rewards.
2007-09-07 02:26:18 · answer #6 · answered by Wolfgang92 4 · 2⤊ 0⤋
Because country is slowly dying and empire started to fall apart.
2007-09-05 06:11:03 · answer #7 · answered by Anonymous · 2⤊ 0⤋
Because the liberal media always reports all the negative it can find when Republicans are in power.
It is not slowing down.
2007-09-05 05:54:52 · answer #8 · answered by Chainsaw 6 · 1⤊ 3⤋
Because you['re reading the Yahoo LIEberal media and they always lie.
2007-09-05 06:49:49 · answer #9 · answered by Anonymous · 1⤊ 2⤋