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Economic Hope for 2009

Economic Hope for 2009

2008 has brought many people economic distress. Millions of people have lost their jobs and/or their homes. The U.S. government has enacted a bailout plan in order to save the economy. Experts predict that all could be well, as far as the economy goes, by the middle of 2009.

Yes, 2008 hasn’t looked very good. It started out on a bad note and will end up on an even worse note. Unemployment rates have skyrocketed. Consumers aren’t spending the money they need to spend to get the economy rolling again. But, there are early signs that this is all coming to a close.

MSNBC.com reports that the “best case” scenario puts our economy back on track by the middle of 2009. The second half of 2009 is supposed to welcome steady, yet slow, economic growth. Nariman Behravesh, of Global Insight, said, “We do have a number of forces that could come together to produce what could be a fairly strong recovery.”

One of the biggest forces that is driving our economy in the right direction is the Federal Reserve. Recently, the Federal Reserve has made several historic moves. These moves were strategically designed to re-fuel the economy with trillions of dollars. Another force that is helping out our economy are massive tax cuts and government spending. This spending could be as much as $1 trillion by the end of next year.

Another good sign is oil prices. The recent drop in oil prices have given consumers over $250 billion per year in oil rebates.

Behravesh continues, “All this put together is massive. So there is now the distinch possibility-if the timing is right-it could all hit at the latest in the second half of the year, and you could actually have a real pop in growth.”

2008 might have been the most dismal economic year in decades. But, new signs of economic growth could mean that 2009 will be a successful year. There is definitely economic hope for 2009.