Housing starts lowest in months. Bad news. Building new homes is a very important factor to helping our economy grow. When the number of new houses being built is declining, it could possibly put our economy back into a recession. This headline would mean there would be less labor jobs available for those people without a formal education (roofers, electricians, plumbers), and it would cause plumbing companies to have less business as well. 2.
Fed lowers discount rate and interest rates tumble.
Good news. Raising the discount rate would make it more expensive to borrow money from the Fed which would lower the supply of money. Therefore, the lower the discount rate, there better for us. However, banks are affected by this because they would prefer that higher interest rates to make more money. Even though interest rates are low, there still aren’t more people trying to get loans causing banks to get less business. 3. Retail sales up 4 percent over last month.
Good news. The more money people are spending, the more it helps our economy to grow and recover. As for small businesses, this would make them want to raise their prices so they can see more of a profit while people are pending money. Larger businesses, on the other hand, may lower prices or offer specials in order to insure that the people will keep shopping with them. 4. Business debt down from last year. Good news. This headline shows that the economy is in fact improving each year.
As both small and large businesses decrease their debt, it allows them to stay in business much longer. It also gives them the ability to start supplying more items or providing more services. Now they will be earning more of profit than before and customers will want to go to these businesses if they hear that their debt has gone down. It makes it obvious that the business has the potential and resources to survive an unpredictable job and economy. 5. Businesses are buying more electronic equipment. Good news.
The economy still benefits, and may even benefit more, from businesses having electronic equipment because it is faster and more productive. Buying more electronic equipment helps larger businesses to keep up with the constantly changing technology while it also helps them grow. For small businesses, it can be a downfall if they can’t afford to keep updating this technology as is continues to change rapidly. 6. Industry jobs go unfilled as area unemployment rate sinks 3 percent. What is the current unemployment rate? Bad news.
I believe this could also be good news, but also believe that it’s more bad than good. Yes, it’s good the unemployment rate is sinking, however it is not at zero. Therefore, these industry jobs shouldn’t be unfilled because there are still plenty of people without a job that need one. It affects all sizes of businesses because the a shortage of staff and the production/wants/needs continue to increase. Eventually this could cause problems within the business where they come too overwhelmed because they’re understaffed.
The current unemployment rate is 6. 1% as of August 2014. 7. Telephone company reports 30-day backlog in installing business systems. Bad news. This can cause the economy to slow down, even if it’s only a small portion, it still counts. A headline like this can have a bad effect on both large and small businesses, because they aren’t receiving the systems they need within the correct time frame. It could cost them a lot of time and money or even customers. All things they need in order to function and remain in business.
Cite this Economics “Housing”
Economics “Housing”. (2018, May 26). Retrieved from https://graduateway.com/economics-housing/