Home About Chat Users Issues Party Candidates Polling Firms Media News Polls Calendar Key Races United States President Senate House Governors International

New User Account
"A comprehensive, collaborative elections resource." 
Email: Password:

  Economy called OK if people still spend
NEWS DETAILS
Parent(s) Issue 
ContributorPenguin 
Last EditedPenguin  Sep 17, 2006 11:33pm
Logged 1 [Older]
CategoryAnalysis
MediaNewspaper - Madison Capital Times
News DateSunday, September 17, 2006 05:00:00 AM UTC0:0
DescriptionWill Americans keep up their healthy appetite to spend money?

That could determine whether the U.S. will head into a recession in 2007, Don Nichols, UW-Madison professor emeritus of economics and public affairs, told a conference at the Fluno Center on campus Friday.

The "big unknown" is how consumers will respond to falling home prices - a problem on the coasts but not in the Midwest - and high oil prices, Nichols said.

"If they cut spending 1 percent, we could tip into recession," he cautioned. "It's not the likelihood, but it's what I worry about."

Nichols said U.S. corporations, as a whole, are doing well, although the economy is slowing. Non-residential construction and business equipment spending are up and corporate profits are "enormous," he said.

"They have enormous capacity to invest, and if they do, it's going to keep us out of recession," he said. "There's no reason for corporations to chicken out at this time."
Share
ArticleRead Full Article

NEWS
Date Category Headline Article Contributor

DISCUSSION