The worst U.S. economic slump since the Great Depression abated in the second quarter as government spending programs started to kick in, while the sharpest pullback by consumers since 1980 augured a muted recovery.

Source: Bloomberg.com

Date: 8/01/2009

Keys: Economy, finance, investing, business cycle

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aRV7ZR6CGNQY

Questions for discussion:

• Do you believe the economy will soon recover to normal levels of consumer and business spending? Explain your answer.
• What do you think government, business, and consumers could do to help the economy improve?
• What are the short and long-term consequences of increased borrowing by government, business, and consumers in order to increase spending today?