Reasons to be Optimistic about the Economy 5.00 / 5 (100.00%) 1 vote

Without all of the doom and gloom that often accompanies talk of the economy, it is only natural to feel anxiety of the financial future of the country. There are, however, indicators that things are improving and that there will be a major shift in the financial health of the U.S. economy. Understanding these changes will give you greater peace of mind and security.

5 Reasons to Be Optimistic About the Economy

Falling Unemployment

The rates of unemployment have slowly declined in the last year, and more jobs have opened up in the manufacturing sector, which suffered a hit during the Great Recession. While some attribute falling unemployment rates to the fact that many have stopped looking for work, there is strong evidence that growth across industries has led to an increase in the employed population. At 7.4 percent, the unemployment rate is the lowest it has been since 2008.

Lower Gas Prices

Gas prices have long been indicative of the economic health of the country, and they have been falling steadily in the past year. Down from $4 a gallon in May, 2014 to just under $3.80, the drop in gas prices is an indication that supply and demand are leveling out. Dropping gas prices are also good news for businesses that depend on tourism. With more drivers on the road, the hospitality industry has seen dramatic growth.

Home Prices Rising

The price of homes has risen 10 percent in the past two years alone, and the real estate market is seeing more singles and families making home purchases. The median home price in the United States is $215,000, up $30,000 from just the year before.  The rise in home prices has also helped to aid growth in the construction sector, an industry that took a hit in the initial housing crisis.

Increased Consumer Spending

People are buying big screen televisions again and that is a good thing for the economy. Increased consumer spending is an indication that there is a jump in disposable income, a barometer of the economys health as a whole. Much of the growth in the second quarter of 2014 came from consumer spending as more Americans buy cars, clothing and other luxury products.

Wages are Rising as are Investments

Not only is the job market on an uptick, those that are working are enjoying increased wages at work. This translates to higher numbers of people who are investing in retirement plans and other savings accounts. Increased wages also mean more disposable income and tax revenue, which is a boon for the country. Increased tax revenue means more money for infrastructure, schools and services.

While the economy still has not enjoyed a complete rebound, there are signs that things are steadily improving. From increased wages to job growth and consumer spending, there are many reasons to be confident and optimistic about the growth of the economy.

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