Read Full Article Here: http://www.businessweek.com/articles/2012-09-13/face-it-2013-is-gonna-be-a-bummer#r=lr-fst
Whether it’s Barack Obama or Mitt Romney taking the presidential oath of office in January, someone will have the misfortune of overseeing an economy that looks a lot like the one we have today: low growth, persistently high unemployment, and huge amounts of debt. Depending on what happens with the “fiscal cliff,” there’s at least a chance the U.S. will be in recession. The mere threat of $600 billion in tax hikes and spending cuts is already delaying business spending. Yet even if Congress does broker a deal and the worst of the fiscal cliff is postponed, 2013 is shaping up to be a rough year.
Read Full Article Here: http://www.businessweek.com/articles/2012-09-13/face-it-2013-is-gonna-be-a-bummer#r=lr-fst
24 Comments
Andrew Merlino
9/17/2012 04:30:53 am
The economists show there is nothing to be looking forward to in the future and in 2013. While America is on the edge of a recession, the increasing debt of 600 billion does not help either. So, we can look forward to lower incomes and tax increases starting the beginning of 2103. Us college students have nothing to look forward to while jobs are not available. U.S.A should not trade with China and Europe anymore and bring those jobs to America where people can get a job and make a decent living. Instead of creating new jobs businesses make their current employees work longer. We are in a crisis and college students are about to get the worst of it.
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Drew Jenkins
9/17/2012 11:37:18 am
2013 is not looking to promising for graduating students like myself who are in the job hunt. Increasing taxes will not bring in new jobs for people. Increasing production while keeping the same work force within a company is certainly not the right approach. However, if I owned a small business and there was a tax increase, I would most likely lay off workers rather than hire new ones in order to offset that tax increase. Tax increases will not stimulate growth within the economy. I personally believe it will weaken it. Regardless, the economy is in the hole and as a senior in college I am very worried about finding a job in 2013 after I graduate. It is not just the United States, it is also Europe and China. The two largest export markets is growing at the slowest rate since 2009.
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Cory Rose
9/19/2012 11:46:56 pm
While the government is not completely to blame for our current issues, recent legislation completely takes away American's requirement to work hard in order to be successful. Instead of making business learn for poor decisions they bail them out with tax payer dollars. I think you can apply this to an individual standpoint also, government assistance is at an all-time high. This is leading to the successful businesses picking up the slack with higher taxes and more penalties for being successful, which in turn is causing them to cut jobs. This explains the low growth in GDP and in business expansion. It is a scary market right now. I graduate in May and like the two comments before me, I'm very worried about finding a decent paying job. I agree with the article in that regardless of who wins the election our economy is going to be weak for at least the next term and maybe into the one after it. The saving rate is so low that it isn't even worth saving money, I think the FED is simply trying to sustain without trying to fix. Bernanke newest plan to help was the same thing he has done the last few years, print more money and keep buying securities. His new QE3 plan is a joke, buying $40 billion of agency mortgage-backed securities a month is not going to do anything. People focus too much on our bipartisan affiliations to pay attention to the organizations that actually affect our economy like the FED.
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Ryan Manoogian
9/20/2012 02:12:50 am
Unfortunately, 2013 is not going to be as positive as everyone was hoping for. We were hoping that the U.S. economy would grow 3%, which would have been a very promising direction for our economy. Unfortunately most economists are predicting the U.S. economy to only grow around 2.2%, and even Joe LaVorgna, chief U.S. economist at Deutsche Bank believes that it will only grow around 2%. This means that our economy will be staying in the same situation we are already in, high unemployment and a struggling economy. With the median age of U.S workers at a record high, we can only look forward to that number increasing. As taxes increase and income decreases, we can only expect people to have to work longer to reach their financial goal for retirement.
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Ali Abouzalam
9/20/2012 02:58:15 am
The consensus seems to be that the year 2013 will high debt, high unemployment and low growth. The very near future of the U.S economy is vital to pay attention to, especially by college students looking to enter the work force in the next few years. Confronting what has been dubbed a “fiscal cliff” will be a real challenge to new members of the workforce considering the nearly inevitable tax hikes. That is, if there are jobs available. China and Europe, two of the biggest export markets for the U.S have also been weakening and their relative lack of output hurts the U.S as well. Not to mention that the average age of the workforce has significantly increased which means there are less young workers that are cheaper and more flexible. Both candidates for this year’s election will have a difficult time getting America’s growth back on a steady pace if elected. It is inevitable that the United States will fall off a “fiscal cliff”. How long or how hard this fall will be is debatable but what we know for certain is there must be a better growth strategy developed as a solution to our slowed economy.
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11am 4889
9/20/2012 05:15:25 am
2013 does not look like a promising year no matter what president goes into office. The world seems in utter turmoil and the U.S should focus on themselves at this point. Even our founders questioned sending our business over seas as early as 1890s and with Europe and Chinas downturn we need to shake off those riding our coattails and rebuild a nation at home. -.7% away from our goal growth rate is scary as a young adult about to enter the work force and i am praying for a miracle.
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ECO_10am_1388
9/20/2012 05:20:24 am
This article clearly exemplifies the sad truth that we will be facing in 2013 regardless of which president takes office. As a senior at Tech, the high debt, high unemployment, and low growth makes me fearful of my future once I am on my own following graduation. With the GDP expected to rise 2.1 percent in 2013, along with a weakeneing global economy, it is evident that the recession has spread worldwide. It is hard for me to imagine hope for improvement. With 15,000 factory job cuts in August pushing a monthly trade deficit in manufactured goods to $63.9 billion, economists have predicted job growth to stop growing by next year. Romney and Obama have some tough shoes to fill, and I sincerely doubt they have any means of preventing our country's downfall. In the times we live in today, as expressed in the article, Americans have no idea how to manage their money as wisely as Americans back in the 80s. Our country is very ignorant, yet it is also much more difficult to deal with the economic state today than it was back in the 80s. I agree with the article that Americans will be facing hardships in the years to come, regardless of which candidate will be running the show upon inauguration. I am personally planning on fighting my own battles and seeking out of job every day before I graduate. Do what you can to get a decent job, and save what you can, because the economy is highly unpredictable.
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Jay Burrous
9/20/2012 05:21:38 am
This article depicts 2013 as a time in which the economy will be growing at a slower rate, the national debt is crippling, and companies are not hiring new employees. It seemed as if the only positive news was that both presidential candidates promise to fight the national debt. The export market is struggling as well. Drought across the Midwest has made prices for corn, soybeans, etc. absolutely skyrocket in the last several months. High prices will cause the Chinese and European countries to have lower demand. This is obviously not good news for college graduates. Companies will not be taking as many new employees, which is a scary thought. Students could end up staying in school longer to obtain a masters, which would increase individual debt, is going to be popular alternative to getting a job. The US will experience recession, but hopefully the political situation will bring stability to several of the problems we are experiencing.
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Clyde Swalwell
9/20/2012 08:20:05 am
The 2013 economy is a result of the big government binge of the past century. It is interesting because it is now the centennial of the 1913 enactment of the personal income tax; the real beginning of the monolithic federal government that is now in place today.
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Blake Nelson
9/20/2012 09:34:42 am
As our economy has been on a steady downfall for the past 4 year, the economist in this article states that the economy will continue to decrease as we move into the year 2013. I think that the beginning of this all started with the baby boomer era. During this time in the 50's and 60's family would have chirp dream is excess of 3-6. When all of those baby boomers became of age to have their own kids they didn't cover what the generation before them had done. This all causes a decrease in social security. I believe that the year 2013 will be a tough year for our country, but I can also see the light of us coming out of this recession with 2 years. I think that the number of jobs in the US with eventually increase in the near future is we decide to decrease the amount of jobs that we send to foreign countries. I think new leadership in our white house will change the way things are tenfold.
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Evan O'Leary
9/20/2012 10:09:32 am
It seems to me that the more globalized the world economy gets, the more difficult it is for a nation to get out of finiancial trouble. America may be slowly climbing its way out of the hole that the '08-'09 recession left us in, but now our two largest export markets are both experiencing trouble at the same time, also hindering our growth. The same situation with Germany and the rest of Europe looking for it to bail them out. As for the Obama/R-money debate on who would be most suited to "fix" our economy, I believe that this problem is much too large for any one man to make an impact on. It would take a functioning congress to even begin to approach any long-term solutions.
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Britt Bearden
9/20/2012 12:51:37 pm
As a political science major I can definitely say that this article is spot on with my feelings toward the presidential election. Promises of cutting spending as well as raising taxes sound great, but can slow the growth of our economy. Both of these are great ideas but it will likely bring forth another small recession; there is not a quick fix in this case. The demographics shown do not help either. They show an underlining factor of the problem with unemployment and upcoming problems with Social Security. Also, unlike looking at the past economic problems of the 1980s to help now, the situation is entirely different. The theme behind this article seems to be that U.S. citizens and others are afraid of the future, and have a right to be.
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Brent Ellis
9/20/2012 01:28:53 pm
I believe that even though the outlook doesn’t look good, there is still promise in our future. That even though it looks like the hole that the United States economy is very deep, as a country we can still get out and get onto the right track. What I believe that we need is to be more Fiscally Responsible, in all levels of Society. That means that even our congressmen need to act with some responsibility in when it comes to settling our debt and cutting all of the fat that is in our budget. We as a nation are on a hamster wheel, the more we keep borrowing the more interest grows, and the more that interest grows the longer it takes to get out of our debt. So serious changes need to be made if want to get back on the right track.
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Richard Andro ECO 11am MWF
9/21/2012 03:22:02 am
sadly the upcoming year of 2013 is not going to be the year many of us were expecting. No matter if Romney wins or Obama wins the econ is still going to suffer. In a recent survey conducted by Bloomberg, the GDP is expected to rise to 2.1% in 2013. The economic growth is also expected to be around 2% rather than the 3% we were hoping for.
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Matthew Edgar
9/21/2012 03:29:45 am
When it comes to the economy, it is understood that after a big upset like the stock market collapse we saw recently and recession we are still somewhat dealing with, there is going to be a period of hardship that follows. We are still recovering as a world economy. One of the problems goes back to the fundamentals of economics. When a crisis occurs, people stop spending, and when people stop spending sales go down. Companies face the difficult task firing employees. Unemployment rises along with debt. While governments offer incentives like low interest rates to promote spending, the problem will not be fixed very quickly. It takes time for the population to regain faith in the economy.
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Brian Oney 10329338
9/21/2012 04:46:08 am
Perhaps the rise in the average worker age is an unintended side effect of advances in medicine that increase lifespan. The older may not spend as much building households like younger workers but their medicine is expensive which also stimulates the economy. Maybe the older workforce isn't as bad as it seems.
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Nathan Wall
9/21/2012 05:38:58 am
It's sad to know that no matter what president is in office in 2013 our country will be in the same spot or worse. The fact that GDP and household spending and savings is decreasing regularly is a bit uneasing. It doesn't give me too much hope or faith for the upcoming future. Another fear for the country is that unemployment is rising, which doesn't sit well for all the college graduates that are trying to find a first job right of college.
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Ahmed Tariq R# 10332107
9/21/2012 08:33:02 am
From an economic standpoint, 2013 is shaping up to be a very challenging year no matter who gets elected as our next president. The weakening of the global economy is a big reason for the worsening of the U.S. economy. Output per hour might be on the rise, but job growth has the potential to grind down to zero in 2013. The combination of rising output and falling growth is a bad sign for hiring. This will be a major issue for students who will be graduating from college in 2013 or 2014.
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R10310897
9/21/2012 09:23:41 am
The president who will be taking office, wether it be Barack Obama or Mitt Romney will have a tough time trying to fix the problem that are wrong with america right now. The possibility of a recession is very likely in the near future so it will give people a decision to make to who would best lead America during it.
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Michael Davis_ 10am mwf
9/21/2012 10:32:55 am
It would appear that 2013 is going to be a rough year economically. With high debt and many unfavorable factors the expected GDP growth for 2013 is going to be slow. Despite the bleak outlook for 2013 consumer spending is near a four year high according to a recent Gallup poll, http://www.gallup.com/poll/157295/consumer-spending-climbs-close-four-year-high.aspx. And although a current problem, a high average age for the working population would mean that more jobs should become available as these individuals retire. These things combined with the fact that both presidential candidates are promising to pay back the national debt give me a little hope for the future even if we face a bad year in 2013.
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ECO_10am_R10397773
9/21/2012 11:54:06 am
It seems that 2013 could be even worse than what the economy looks like today. As it already is bad enough, we could be going into a deeper recession in 2013. The next president, being either Obama or Romney, has a lot of work to do figuring out how to fix the growth rates for the next year. Joe LaVorgna, the chief U.S. economist at Deutsche Bank expects the growth rate to be 2.2% for 2013 rather than the 3% we are hoping for. However, the next U.S. president will not be able to keep the rates from slowing down although they may lower the federal budget deficit. A big problem in today’s economy is the average working age being 42. I believe something needs to be done to create more jobs for the younger work force that are more flexible and cost less.
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11:00 a.m. R01948264
9/21/2012 12:31:58 pm
With the current economic situation hope seems sparse in the heart of the american public. We are now being challenged with some of the biggest obstacles in our great country's history. Whatever the financial situation may be, improvement to the economy starts at each individual household. It is imperative that we, the future of the workforce, stay educated on the current economic crisis. Through education and awareness we can improve the economic atmosphere worldwide. It seems to me that this election is less about who becomes president but rather about how we as people handle the change. We need to focus on our actions as individuals in hopes that a collective level of achievement will be reached. The president is undoubtably a very respected and authoritative figure in society but let us not forget what this country was founded upon. The power is vested in the people. We have all of the hope we need if we chose to see and understand it.
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ECO_3311_10AM_10469289
9/21/2012 12:41:05 pm
I feel as if either Presidential Candidate will have to work extremely hard to fix the economy in 2013. There is no one else to blame for the situation America is in other than America itself. Having worked for a Small Business owner, and now being one myself, I feel as if Corporate America has ruined our economy...sending their production facilities overseas, lowering their prices to undercut the small businesses that are trying to keep money within our economy, and cutting thousands of jobs in the U.S. has completely ruined this economy. When Corporate America starts raising prices to undercut others, that is when income becomes scarce and families can no longer live the "American Dream", losing their job to someone overseas just so the CEO's don't have to pay the taxes that are levied on everyone else.
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R00759089
9/21/2012 01:52:31 pm
I think 2013 will be a rough year as far as spending cuts and tax increases are concerned but they will be necessary to keep this country afloat. This is what happens when government gets too big, and government expansion has been going on for far too long. Creating new programs and expanding current ones without the capital to do so has forced us to borrow entirely way too much money. Instead of being worried about whose going to be president we should be more worried about what is going to happen in the house and senate. They are the ones responsible for coming up with a realistic budget that wont keep adding to the deficit. Our elected officials dug this hole and its going to be a rough couple of years trying to climb out of it.
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