5 Reasons Why The US Economic Outlook Is So Grim

1. High Unemployment And Low Job Creation- The grim US economic outlook is based in part on the jobs and unemployment data that is collected. Right now job creation is barely keeping pace with the jobs lost each month, and unemployment is still more than 8% using the official numbers. It has been several years since the financial crisis but employment has not bounced back. Many of the new jobs created are low wage jobs, and this also has an impact.

2. A Fall In Housing Prices- Housing prices are close to rock bottom right now, and this does not look like it is turning around any time soon. Many lenders have tightened the standards needed to qualify for a mortgage, and there are thousands of homes in many areas that are vacant and have been on the market for at least a year. Some homeowners find that they now owe much more than their home is currently valued at.

3. High Energy Prices- The US economic outlook right now is also bleak because of the high energy prices that are seen across the nation. Gas is around $4 a gallon in many areas, and in some places it is much higher. A push for renewable energy has also caused electric and other utility prices to rise as well. The higher cost of energy leaves less money for consumers to spend in other areas.

4. The Drought And High Food Prices- The drought during the summer caused many farmers to lose corn and other crops, much of which is used in the food supply for Americans and other countries. In addition the government mandate for diverting corn and soybeans to be used for fuel production may cause food prices to go up even more.

5. Less Consumer Spending- Part of the poor US economic outlook involves consumer spending. Many polls show that a majority of Americans feel the country is headed in the wrong direction. Consumers are unsure about their financial future so they are spending as little as possible and holding on to their money instead. This lowers the retail spending that occurs, which hurts the economy even further.

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