"I say this can be a breakthrough year for America. The pieces are all there to start bringing back more of the jobs that we've lost over the past decade."
- Barack Obama, U.S. President
Growth, growth and growth. This is what companies require in order to increase spending and hire more employees. Randall Stephenson, chairman and CEO of AT&T and the new head of the Business Roundtable pointed out that in case Americans want to take soaring budget deficit under control, preserve key entitlement programmes and educate their children, companies will need to see the world's largest economy expanding faster.
Following his comments, the American Bankers Association showed the U.S. economy is on the track to meet or beat the 3% threshold this year. It means that even a disappointing jobs report for December, was not able to dampen the optimism among economists. Soon after the data release, Obama, whose approval rating plunged last year, seized the opportunity and told the public the same thing, promising 2014 to become a ‘breakthrough' year for the economy.
But what makes this year so special? First of all, politicians are on the track to pass budget bills to the government through the next two years, meaning there will be no tax hikes and it seems that for the first time Republican and Democrats will avoid a fiscal fight that can undermine economic growth once again. Moreover, businesses are expected to more than double their investment in 2013, further solidifying the foundation for economic amelioration this year.
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