It’s been almost ten years since the last major recession in the United States. Since then, the economy has been on the road to recovery.
There’s a lot of uncertainty in the world these days, which is reflected in the world’s financial markets.
However, recent trends show that markets in America have remained strong and have been growing. That said, the economy simply cannot grow forever. Some economists have said publicly that another recession could be around the corner.
Dean Baker is the co-director at the Center for Economic and Policy Research. He speaks with Detroit Today host Stephen Henderson about his take on the possibility of another recession. While some economists fear that a recession is looming, others, such as Baker, see it differently.
”I don’t see a recession on the horizon—and the reason is simple,” says Baker. “I’m not worried about a bubble bursting because there is no bubble, and I’m not worried about a traditional recession through the Fed raising interest rates.”
Jeffrey Dorfman, professor of agricultural and applied economics at the University of Georgia, is someone who often sees the economy and markets very differently than Baker. However, he agrees with Baker that signs of a looming recession aren’t there right now.
According to Dorfman, struggling to make ends meet impacts the community more than the actual economy.
“I don’t think (people struggling to make ends meet are) threats to the health of the economy,” Dorfman says. “They’re maybe more threats to, sort of, the health of the community.”
Click on the audio player above to hear the full conversation.