On January 26, 2012 all four Republican Presidential candidates -- Newt Gingrich,Ron Paul,Mitt Romney, and Rick Santorum -- proposed how they would fix the economy. Find out what they said, and how would it affect you?
Last year ended on an optimistic note, as GDP growth inched up to 2.8% in the fourth quarter (October-December). This was the best quarter in a year and a half, and is in the healthy range of 2-3%. However, growth for the year was only 1.7%, according to the BEA report. Neither growth rate is enough to put much of a dent in the nation's 8.5% unemployment rate.
In 2011, foreclosures fell to the lowest level since the recession. "Only" 1.9 million homes received foreclosure filings last year, compared to more than 2.7 million each in 2010 and 2009. According to foreclosures may rise 25% in 2012, as banks work through the shadow inventory they accumulated during the "robo-signing" investigation. (Source: Bloomberg, "Home Seizures May Jump 25% This Year as U.S. Foreclosures Resume," January 17, 2012)
The Consumer Price Index report for December was exactly zero -- just like it was in November. This means that price decreases in gas, oil and automobiles offset slight prices increases in everything else during the month.
Holiday shopping sales didn't come in as merry as stores would have liked. The Commerce Department reported that December's retail sales report was $400.6 billion, up barely .1% from November. Heavy discounting probably ate into revenues at electronics and appliance stores, where sales dropped 3.9%. (Source: U.S. Commerce Dept, "U.S. Retail Sales," January 15, 2012
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