Massachusetts economy

Last Thursday, one inspiring piece of news attracts my attention: the US U.S. economy expanded in the third quarter after shrinking for four consecutive quarters, marking an apparent end to the worst recession since World War II. Gross domestic product expanded at a 3.5% seasonally adjusted annual rate in the quarter ended in September, which is faster than expected. This news greatly regains and improves consumer confidence as well as stimulates the whole economy environment. The Wall Street Journal showed its exciting with the headline “Economy Snaps Long Slump”. The New York Time also puts forwards the idea that the United States has emerged from the longest economics contraction since World War II.

Meanwhile, the large mainstream media didn’t over optimism. Still, with so much of the growth relying on government spending, for instance, the $787 billion stimulus package, which was passed last winter and is still being distributed, it is unclear if consumers and businesses have regained the strength to propel the economy on their own. Many economists worry that the efforts of these government initiatives will be short-lived and that the next few quarters may show sluggish growth again.

In fact, some states economy, such as Florida and Nevada, had seemed to be a faster recovery in third quarter. Unfortunately, the list doesn’t include Massachusetts. For many reasons, the Bay state economy was far weaker than the national economy, which still contracted in the third quarter. The state fell into the recession later than the downturn began nationally last year, also appears to be coming out later now.

I’ve no idea the government had taken adequate actions to facilitate the Bay state economy. In an attempt to achieve full employment and price stability (low or zero inflation) in the state, it should be the eternal objective of every government. The article states that the joblessness increases to more than 9000 in September comparing with 700 only in August. The employment rate even reached to the highest level since 1976, which is a quite scared number. In my point of view, the state government should introduce more practical policies to promote the sustained recovery in the three major industries as well as other sunrise industries. High employment rate will directly stimulate the consumer spending and investment; greatly help the economy recovery and growth.

Another point worth mentioned is government should also consider what next step to be taken after the programs expired. Those programs have favored the state economy a lot, and it is time to think about how to regain the strength to propel the economy on our own. It is a complicated but practical project. Massachusetts has a great deal of competitive industries that could be dug out more potential and create more jobs.

In all, as long as handling these problems well, I believe the article says: The state’s economy has probably hit bottom and will resume growing in the current quarter.