People Need Reassurance About the Economy

Nov 5, 2017 by

The market is at an all-time high and the job market continues to steadily improve, so why are people still so down on the economy?

The truth is there has been a major hangover from the Great Recession which has led to several issues. First, there are some communities that continue to struggle to return to the level of affluence they had before 2009. While unemployment is low, that doesn’t mean the jobs are of the same quality as they were before. The stagnation of wages and the increased amount of the workforce in the service industry suggests that while people are employed, they are not happily employed.

Another issue is rising housing prices, as well as rising rent, which has once again begun to price out those looking to enter into a more affluent life. With prices so high, there’s a tendency to fear another crash, which may be pushing some who could afford property to hold off.

This latter point, the fear of a crash, is perhaps the most prominent reason for distrust in the economy. While the economy has remained strong for almost a decade since its lowest point, there have been few outward signs to reassure those who understand the markets only by headlines. At the same time, in the battle of the headlines, there are constantly stories of financial improprieties, including broker misconduct, as well as activities that are legal but some consider unethical, such as the large “dark money” contributions to political campaigns.

To ensure the economy remains strong, there needs to be more confidence. The numbers coming out are healthy enough, but they alone are not signaling to the general public that they can trust the economy in the future.

Reassurance is necessary. More needs to be done publicly to show issues like broker fraud are being dealt with appropriately. At the same time, a jobs program, perhaps in something an area like infrastructure which has widespread bipartisan support, would go a long way to showing many people that higher paying jobs exist and more are on the way.

Finally, more must be done to address the rising costs of homes as well as renting, particularly in the cities. A lack of access to the better suburbs and to the cities is one of the primary reasons people feel there are not enough job opportunities or room for growth. Making inroads in this area would all for more people to share in the booming economies of the cities, and thus reassure them.

These points should be taken seriously and addressed in a reasonably quick manner. A lack of confidence long term can lead to negative effects as people refuse to invest their money or take entrepreneurial chances.

The American economy is strong. It is doing well. It just needs a better publicist to prove that point to its citizens.

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