Wednesday, May 6, 2009

Americans Pessimistic Over the Economy

A recent survey showed that more than 50 percent of Americans are pessimistic over the condition of economy and admitted that they have refrained from buying luxury items.

According to America’s Research Group, the majority of consumers think that the worst of recession is not yet over. Meanwhile, this finding is not surprising given the fact that massive layoffs and disposable incomes have become the major concern of ordinary Americans today.

With a financial crisis, many people have been forced to drastically cut their expenses. This trend is shown in the research group report which revealed that more than 74 percent of consumers consider the price of foods before purchasing these.

The findings just shows that the consumer confidence in the US has already reached record-low, also a clear indication that majority of Americans are greatly affected by the financial crisis. And with threats that unemployment rate may jump up to 10 percent for the next few months, pessimism continues to grow.

In an effort to lessen the burden of ordinary workers, the government recently passed a new tax incentive which includes less withholding tax on their salaries. Meanwhile, this may not be substantial since it will only allow a person to save roughly $400 every year or $7.69 a week.