The rewarding of high compensation packages to top executives who turned over weak quarterly earnings, or who were involved in corporate scandals, adversely affected short-term investing, and collectively contributed to the downturn of the global economy over the last couple of years. Even the help and expertise of Federal Reserve Chairman Alan Greenspan and several notable Nobel Prize winning economists in the President's Council of Economic Advisers, wasn't enough to revive the economy. September 11 then turned our attention towards terrorist threats against the markets.
Many, including the Bush administration, believed that a short war was the answer to both of these enormous problems. That is, if done quickly, a war would induce an increase in government spending that will be injected into the economy and a multiplier effect will, in turn, create jobs for the unemployed. But now that it's over and coalition forces have taken control of Iraq, should we expect to return to business as usual? Unfortunately, this is easier said than done.
The facts are that the underlying and axiomatic problems are still present in the global economy. First and foremost, we have America's account deficit, which is increasing by the second. The cost of the war is certainly adding to this burden and is currently hovering at approximately $20 billion dollars. Some experts say that this cost could reach up to $95 billion dollars. We, inevitably, will have to pick up the majority of this bill.
The United States' Gross Domestic Product (GDP) is also not in good shape. It has trickled down to an annual GDP growth that is expected to reach only 3.1% and both France and Germany have recently downgraded their annual GDP growth forecasts to 2.4% and 2.0% respectively. Moreover, the "uncertainty factor" as I like to call it, most likely will keep businesses and consumers cutting back on expenditures for the remainder of 2003.
Fortunately, there are some signs that the economy is beginning to recover. A report that was recently released by the U.S. Department of Commerce showed a rise of over 2% in retail sales for the month of March and a slight rebound in consumer confidence. Also, the national unemployment rate, which was released by the Bureau of Labor Statistics, remained unchanged at 5.8% for March 2003. While the majority consensus is that the economy will eventually recover, it is apparent that this will definitely take more time and effort than what most people had originally predicted.
Carlos T. Fernandez is the business columnist for Dominican Times Magazine, a publication that focuses on the hispanic culture and the issues affecting its communities. He is also the publisher of a popular financial planning and management website entitled Building Wealth (http://buildingwealth.blogspot.com).
Culver prom limo ..Are you setting the right money goals?Most people believe having... Read More
Building wealth is as simple as saving a little bit... Read More
You may think you have to be an entrepreneur to... Read More
When young men ask me how to succeed, I tell... Read More
One very important wealth creating habit is to set up... Read More
Masters degree not required...just a little common sense, a $5.00... Read More
Articles on 'How to make money' come a dime-a-dozen. How... Read More
No matter what income level you are currently at, generating... Read More
This retirement account is so new and unique that you... Read More
Before I had a lot of money, I was really... Read More
No one has complete control over their thoughts. But with... Read More
At any time in history, no matter what the current... Read More
"If you know how to spend less than you get,... Read More
Wealth - an abundance of values. Each of us determines... Read More
As you know, we're now well and truly in theInformation... Read More
As a work at home Mother, I know the value... Read More
I am often amused by the ads and offers I... Read More
U.S. Supreme Justice Louis D. Brandeis"I live in Alexandria Virginia.... Read More
Yesterday we learned that 74% of all wealth is created... Read More
What is the difference between wealthy people and poor (even... Read More
Very few people whom I know are familiar with the... Read More
Look at Forbes' top 10 United States wealthiest people. Notice... Read More
You can't build a house from the roof down, and... Read More
Results from a new tool developed by UK based firm,... Read More
Living on credit is fashionable. Indulging oneself is fashionable. Saving... Read More
Wood Dale limo ..I have given many prosperity lectures over the years and,... Read More
This is a true story about a homeless man from... Read More
As many people have observed, "Success leaves clues." If you... Read More
Is it hard to get rich? If you're young, not... Read More
Living on credit is fashionable. Indulging oneself is fashionable. Saving... Read More
You know about compounding right? You understand what pyramiding your... Read More
Not Enough Money?I believe that most people haven't got enough... Read More
1. Save up to 50% per month on convenience cleaner... Read More
You can learn the secrets of world monetary flow if... Read More
Many of us do not consider the underlying belief system... Read More
Financial planning is an ongoing process individuals and businesses should... Read More
Despite what you may have read or heard, anyone is... Read More
In my last article on Creating Residual Income I mentioned... Read More
Everyone dreams of early retirement. The idea of no longer... Read More
"If you know how to spend less than you get,... Read More
Simple tips on saving can very often make quite a... Read More
Retirement Planning the Offshore Way Why do so many of... Read More
As you sit in traffic, inching along between irate drivers,... Read More
Have you any idea how many people search Google every... Read More
There are few things in life that are more stressful... Read More
Building wealth is as simple as saving a little bit... Read More
I am often amused by the ads and offers I... Read More
Six out of six people who were asked to list... Read More
Everyone wants to be wealthy. Only a few actually achieve... Read More
The fact is that most people continue to work for... Read More
Wealth Building |