National economic trends received a notable boost on May 13 when the U.S. Treasury Department announced that current plans have decreased the federal debt for the first time since 2007, according to Bloomberg. The good news could prove especially favorable for newly graduated students as summer jobs begin to reflect the optimism associated with a federal debt cut.
The decrease, thanks in part to paying off some of the government’s net marketable debt, is estimated to reach $35 billion for the second quarter of 2013. Moves such as government spending cuts and budget revisions in early 2013 have helped control debt, but this forecast represents the first concrete sign of improvement in the debt situation in years.
The news follows on the heels of Treasury Department news on May 10 that the housing market continues to improve, particularly in the New York region after the devastation caused by Hurricane Sandy. Reuters reported, meanwhile, that the Commerce Department released its own results showing an unexpected rise in retail sales for the U.S. economy in April (a Reuters poll, for example, had expected retail sales to fall).
The Treasury is encouraging an extension of the $16.4 trillion debt limit suspension that, according to Congress mandate, will last through May 18. While the extension would make it difficult to turn over old debts and could force the United States to default, it could also give industries an affirmation that the fiscal changes at the federal level are a long-term commitment. Fortunately, the rise in consumer sales is providing extra tax revenue that the government can leverage to take some of the strain off the suspension.
These welcome changes in national economic trends point to increased consumer confidence in the economy and falling unemployment rates, particularly good news for students who will be graduating from universities this summer and searching for full-time jobs in a variety of industries.
For those interested in starting their own ventures or tackling innovative new technologies, the Treasury Department has moved beyond reports with its Capital Access Innovation Summit, held in early June as a joint partnership with the Small Business Administration. The conference is part of efforts for “an environment where America’s small businesses can grow and prosper,” according to the site, and helps guide innovators along the path to receiving financing for their startups, another key area of training for entrepreneurial graduates.
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