News Critique 3
This article talks about the increasing prices of household materials. It says that stocks fell due to the increasing prices of the materials and that the budget impasses will hurt its growth. I believe that these people made a very poor decision when they chose to increase prices for the materials because they account for 70 percent of the economy. I also believe that this outcome could have been much worse though. The article says that the material prices rose about 0.3 percent and income rose 0.4 percent and I think that if these percentages exceeded 10 percent, that would have shut them down much faster than what was described in the article. The percentages listed above do not exceed 1 percent, but this outcome is still bad for economists in household market systems. I believe that they are giving too much money to their consumers and that this is why this situation ended up happening.
This article talks about mortgage rates in the United States and what negativity they have on the economy. Higher mortgage rates are decreasing Americans’ personal finances as well as University of Michigan’s final index of sentiment. I believe that it was unnecessary to raise the mortgage rates because I believe that higher mortgage rates will cause a negative outcome on our country’s economy. Higher mortgage rates are slowing down the production of housing materials which account for 70 percent of the economy as mentioned in the first article. It also says that consumer confidence has softened during these past few months. I believe that consumer confidence plays a large role in the economy and if the economy can start having reasonable prices, then they will have even more consumers than they did before this...