America’s economy was set back by the economic recession, but some cities took harder blows than others. However, some economists expect things to turn around as early as this year. Five cities, 4 of which are located in Tennessee and Florida, are projected to have the largest turnaround in 2011. The average unemployment rate of these cities is roughly around 10%, but that number is expected to drop throughout this year. Florida is relying on tourists to begin returning to the coast to increase profits in the hotel and restaurant industries. In return, these two industries should increase their work forces and lower unemployment rates. Tennessee is relying on two of their main auto plants, VW and Nissan, to hire more workers and increase production. These giant automobile factories employ a large labor force, which is very good for the economy. If more people have jobs, then more people will have money to spend, thus increasing revenue for corporations. Hopefully this sort of mindset will ripple out and other companies will begin hiring again. People are all expecting this year to be the turning point; let’s hope their right.
Just as Mr. Ostroff mentioned the other day in class, Texas as a whole hasn't felt the full impact of our economic recession. I agree with Matt when he says that this year could potentially be the turning point for the United States economy, and we are all hoping that he's correct. However, if this year doesn’t end up being a turning point, Texas could easily be in the same situation as Tennessee and Florida because of GM’s SUV plant in Arlington. Though Texas’ GM plant isn’t comparable in size to those in Tennessee and Florida, I believe that the economy in North Texas could suffer. Rising gas prices could lead to decreased demand for gas-guzzling SUVs, putting assembly line workers’ jobs at risk. I truly hope that this year will mark the beginning of economic healing in America, for myself and for all other citizens affected.
ReplyDeleteI agree with your logic matt; those who take the hardest blows are set up for the biggest rebounds. Accepting this statement as being true means that a lot of cities are set up for LOTS of growth. As you said, some cities have hopefully hit the trough of this recession and are bound to spring back- all troughs are always followed with economic growth. Now is the time for investments to come back. With a high supply of resources due to the prolonged contraction caused by the recession, especially people, it will be hard to pass up this golden opportunity. All of the smartest investors know that the time right before an economic expansion is prime time for investments. As you said matt hopefully it will be a ripple effect and as business grow larger and more prosperous, more and more people will be involved in this comeback. Great blog post!
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