6 Signs that the U.S. Economy Will Improve in 2013

| March 4, 2013

The U.S. Economy has had several problems over the last couple of decades, and has been in a recession. Many people, particularly the middle class, have felt the effects of this recession for a long time. But times are changing. Here are six signs that the U.S. economy will improve in 2013, and ways you can benefit from it.

U.S. Economy Will Improve in 2013

U.S. Economy Will Improve in 2013

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Hiring Increases in Each State

Forty-four percent of nonprofit organizations are planning to hire more workers in the coming year, according to The Chronicle of Philanthropy. This shows that charities are starting to feel better about the economy, and are prepared to help increase the job market. This increase will help the economy by putting more out-of-work Americans back to work, and getting them off of welfare.

Payroll Increases Across the Country

Not only is hiring increasing, so is payroll. In January, minimum wage increased in ten states. Now, President Obama is putting forth an effort to increase minimum wage to nine dollars an hour, as well as indexing it to match the rising costs of living. If the bill passes, and minimum wage will finally stay in balance with the cost of living, the economy will continue to improve.

Tax Cuts for the Middle Class

Tax cuts are also helping to increase payroll for several Americans earning less than $400,000 a year.  Only individuals and couples who receive more than $450,000 a year will see increased tax rates. This means more middle- and working-class Americans will see increased pay checks, and less tax withholding.

Social Security Increases

For the first time in three years, Social Security finally went up. Normally, Social Security increases by a small percentage at the beginning of each year, increasing the monthly amount for those receiving retirement and disability benefits. But the last couple of years did not see this increase. In January 2013, those receiving Social Security checks finally saw an increase in their monthly amount. It may not have been much, but it was a sign that the economy is starting to improve.

Cost of Living Adjustments

The government is finally realizing that the cost of living has definitely gone up over the last several years, and is doing something about it. Not only are Social Security payments increasing to meet the cost of living adjustment (COLA), so are investments in retirement funds, allowing Americans to once again begin preparing for this right-of-passage.

Gas Prices to Decrease

Although gas prices appeared to be increasing at the beginning of the year, they should start to decrease soon. The reason for the increase was adjustments being made to vehicles to handle different grades of oil being produced in North America. By maintaining our vehicles to be able to use domestic oil, gas prices should start to decrease over the next year.

These are just six signs that point to the U.S. economy improving in 2013. For more information, check out this Fisher Investments YouTube video on four things for investors to remember in 2013.

6 Signs that the U.S. Economy Will Improve in 2013


Category: Finances

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