News / Economy

Economic Uncertainty Lingers Despite US Budget Deal

Economic Uncertainty Lingers Despite US Budget Deali
X
October 18, 2013 10:00 AM
In New York, investors mostly cheered the last minute U.S. budget agreement that averted a possible default on the national debt, but some economists remain concerned about the country's long-term fiscal health; the long political impasse may have shaken consumer and investor confidence and the deal only postpones legislative action to reduce the national debt. Brian Padden reports.
Brian Padden
In New York, investors mostly cheered the last minute U.S. budget agreement that averted a possible default on the national debt, but some economists remain concerned about the country's long-term fiscal health; the long political impasse may have shaken consumer and investor confidence and the deal only postpones legislative action to reduce the national debt.
 
This ongoing uncertainty hurts businesses like Studley Incorporated, a commercial real estate firm that manages some well-known properties, including the Time Warner Center in New York City. Heidi Learner, chief economist at Studley, said their clients and the markets need consistent economic polices in place to invest in long-term projects.
 
“I think that is what the markets are craving, is that long-term stability and the certainty that comes with knowing we have a budget, at least through the current fiscal year, that allows us to know that the Treasury isn't going to be facing a debt ceiling say every three or four months,” said Learner.
 
John Glynn, managing director of the investment brokerage firm Drexel Hamilton, claims the unresolved budget battles could reduce consumer confidence, which would affect the automotive industry and retailers.
 
“I think people are going to be a little reluctant because they have just gone through something, they think they might have to go through it again in three months, and they might be a little bit cautious with their spending,” said Glynn.
 
Harry Smith, Senior Vice President at Drexel Hamilton, pointed out that a lack of confidence in government and slow economic growth could also mean fewer jobs in the near future.
 
“The factors that we can’t quantify, like employee attitudes or employer attitudes, looking forward do they really want to hire, do they really want to add people to staff when we are not really sure where we stand with the government because we are going to be in this situation in three and one half months,” said Smith.
 
While the budget deal averted some immediate economic problems, it is not enough to put the country on a path to long-term robust economic growth.

You May Like

How to Safeguard Your Mobile Privacy

As the digital world becomes more mobile, so too do concerns about eroding privacy and increased hacking More

'Desert Dancer' Chronicles Iranian Underground Dance Troupe

Film by Richard Raymond is based on true story of Afshin Ghaffarian and his friends More

Obesity Poses Complex Problem

Professor warns of obesity’s worldwide health impact More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam Wari
X
Katherine Gypson
May 25, 2015 1:32 AM
For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.
Video

Video Iowa Family's Sacrifice Shaped US Military Service for Generations

Few places in America have experienced war like Waterloo. This small town in the Midwest state of Iowa became famous during World War II not for what it accomplished, but what it lost. As VOA’s Kane Farabaugh reports, the legacy of one family’s sacrifice is still a reminder today of the real cost of war for all families on the homefront.
Video

Video On Film: How Dance Defies Iran's Political Oppression

'Desert Dancer' by filmmaker Richard Raymond is based on the true story of a group of young Iranians, who form an underground dance troupe in the Islamic Republic of Iran. This is the latest in a genre of films that focus on dance as a form of freedom of expression against political oppression and social injustice. VOA’s Penelope Poulou has more.
Video

Video Turkey's Ruling Party Trying to Lure Voters in Opposition Stronghold

Turkey’s AK (Justice and Development) Party is seeking a fourth successive general election victory, with the goal of securing two-thirds of the seats in Parliament to rewrite the constitution and change the country's parliamentary system into a presidential one. To achieve that, the party will need to win seats in opposition strongholds like the western city of Izmir. Dorian Jones reports.
Video

Video Millions Flock to Ethiopia Polls

Millions of Ethiopians cast their votes Sunday in the first national election since the 2012 death of longtime leader Meles Zenawi. Mr. Meles' party, the Ethiopian People's Revolutionary Democratic Front, is almost certain of victory again. VOA's Anita Powell reports from Addis Ababa.
Video

Video Scientists Testing Space Propulsion by Light

Can the sun - the heart of our solar system - power a spacecraft to the edge of our solar system? The answer may come from a just-launched small satellite designed to test the efficiency of solar sail propulsion. Once deployed, its large sail will catch the so-called solar wind and slowly reach what scientists hope to be substantial speed. VOA’s George Putic reports.
Video

Video FIFA Trains Somali Referees

As stability returns to the once lawless nation of Somalia, the world football governing body, FIFA, is helping to rebuild the country’s sport sector by training referees as well as its young footballers. Abdulaziz Billow has more from Mogadishu.
Video

Video With US Child Obesity Rates on the Rise, Program Promotes Health Eating

In its fifth year, FoodCorps puts more than 180 young Americans into 500 schools across the United States, where they focus on teaching students about nutrition, engaging them with hands-on activities, and improving their access to healthy foods whether in the cafeteria or the greater community. Aru Pande has more.
Video

Video Virginia Neighborhood Draws People to Nostalgic Main Street

In the U.S., people used to grow up in small towns with a main street lined by family-owned shops and restaurants. Today, however, many main streets are worn down and empty because shoppers have been lured away by shopping malls. But in the Del Ray neighborhood of Alexandria, Virginia, main street is thriving. VOA’s Deborah Block reports it has a nostalgic feel with its small restaurants and unique stores.

VOA Blogs

World Currencies

EUR
USD
0.9109
JPY
USD
121.50
GBP
USD
0.6467
CAD
USD
1.2293
INR
USD
63.559

Rates may not be current.