Us Economy

In: Business and Management

Submitted By anitaamjadi
Words 820
Pages 4
US economy has witnessed several recessions and the recent one being in the year 2008. The economy needs lot of support from Government in terms of fiscal and monetary policies. With the investments shrinking, jobs moving to other countries, un-employment rate is at very high levels which has direct effect on consumer spending and housing market. Although some policies are showing some signs of relief, most of them take a long time to have positive effects.
In my opinion, the economy in US is recovering from the most severe recession and it requires as much support which will involve both monetary and fiscal policies. Investment in the economy has dropped by more than a quarter in the recession and an expansionary monetary policy that lowers interest rates will encourage firms to increase investment. It will also help increase consumption as people can borrow at lower interest rates. The options that are left in front of the Fed are more open market operations and a more direct involvement in the financial market by providing lines of credit and short-term debt. The economy also needs direct stimulus from the government since monetary policy can only provide incentives to firms and households to spend, not actually increase spending. In the present situation, Government should carefully plan the budget and should cut down lot of expenditure on our foreign policy which helps on cutting down our federal deficit. Government should raise taxes for wealthy individuals & companies which will help reduce our federal deficit. Right now, we need policies that will create more employment & generate more demand and will help raise our GDP which helps the economy on recovery path. Government should not raise the taxes in the short run since it will hurt the spending power of people, but should put forward a credible plan to raise taxes in the medium-to-long run to counter the…...

Similar Documents

Us China Economy

...owners owned only between 1 to 3 percent of the company. * There could be deviation from the company’s original concept of “holistic wealth” RECOMMENDATIONS I would recommend the company to choose path C, i.e. not to sell the company and leave Namaste Solar as a privately-held 100% employee-owned firm * Already the company is traveling in the right path by having a rapid growth in installations and in revenue. It has been profitable every year with revenue growth of more than 2250 percent. It also had good sales through customer referrals and repeat customers. * The company also is proud of its zero-waste initiatives and green business practices. Both of its offices in Boulder and Denver are LEED-certified. This could attract the US government and make them grant some fund and subsidiary for the company. Solar advocates also point out that fossil fuels have long received government subsidies, that ”the oil and natural gas industries received substantial government aid during their early histories and continue to receive tax breaks for exploration, favorable terms for drilling leases on government land, and so forth” (Derbyshire). Bradford estimates that “global government support is currently skewed toward the nuclear and fossil-fuel infrastructure, with about ten times as much money going to these conventional power sources as to all renewables combined” (http://www.csa.com/discoveryguides/solar/review.pdf).Theoretically, solar might seem an ideal energy......

Words: 1359 - Pages: 6

Current State of Us Economy

...With the recent government shutdown and the fiscal cliff debate over, many Americans are stepping back and asking “what is the current state of the economy?” Although the nation has been experiencing growth and a decrease in unemployment for the past three years, the national annual deficit of $1.1 trillion and the recent fiscal cliff debate along with the government shutdown reflect the nation’s struggle with furthering our economic growth and stability. According to the Bureau of Economic Analysis and the Bureau of Labor Statistics, GDP increased 1.1% in the first quarter of 2013 and 2.5% in the second quarter mainly due to an increase in business investments and goods exports and imports. What we can expect in the next few years is a slow and steady increase in the growth rate. However, many seem skeptical if the increase will be notable to say the least. Like GDP, unemployment has been on a steady decline for the past three years. The unemployment rate dropped from 7.8% in December 2012 to 7.3% in August 2013. This reports that there is an increase in job creations. However, what is more notable is that there is a higher increase in part-time jobs as opposed to full-time jobs, which leaves a bad taste for many because there is no certainty and sense of security. Household debt continues to decline in most categories like credit card debt. Yet consumers continue to remain cautious with a slowdown in consumer spending and spending for goods and services. If this trend......

Words: 635 - Pages: 3

The Us Economy

...The U.S. Economy In 2008, the state of the economy took a major hit. The housing market tanked, consumer spending was down, and the banking system virtually shut down. But after five years of struggling against the tides, and despite the occasional bumps in the road, the US economy is making a strong come back. Combined with the incredible fortitude of the American people and cyclical recovery forces, the economic outlook is stronger than its been in over a decade. A major contributing factor the economic downturn was the housing market. During peak economic activity, single family housing averaged 1.5 million before the housing bubble burst. After the burst, housing began to plunge at an alarming rate of approximately 500,000 for nearly three years. New home sales declined a third of what they were before the collapse, a fate not seen since the 1930’s. But now, the housing market has done a complete turn around and is in full upswing. The number of new home sales has increased and has rebound to its original average of about 2 million nationwide. Some foreclosure units are still in inventory, but that number continues to fall. Demand is also playing a significant role as the U.S. population will continue to increase some 8% over the next decade. This means residential investments will increase by 15% to 20% annually over several years causing a significant ripple affect over the entire economy. (Altman, 2013) During time of hardship, the American people were spending......

Words: 856 - Pages: 4

Testing of Phillips Curve in the Us Economy

...Testing Phillips Curve in long run in the US Economy Introduction: Phillips curve is one of the most startling observations made in economics and gained much popularity in 1960s. The inverse relationship between unemployment rate and inflation rate was first observed by William Phillips in 1958 in his study on British economy during the period 1861-1957. For many years this relationship has been used by policy makers to target unemployment and inflation levels. However, in recent times there are various doubts emerging to this concept as there are cases studied where the trade off between unemployment rate and inflation rate can be observed in the long run thus rendering this concept entirely short run in nature? (Phillips, A.W. cited in Ogbokor, 2005).It would be crucial yet interesting to test the validity of traditional long run Phillips curve as it used as a policy guideline and has had many controversies revolving around it for the same. Objective: Phillips Curve in the Long run: Examining the Long run relationship between unemployment rate and inflation rate in United States using univariate analysis (analysis based on descriptive statistics). Methodology: The data used for analysis has 58 observations collected over the period 1952-2008 consisting unemployment rate and inflation rate of US. It has been collected from Bureau of Labour Statistics and Measuringworth.com. We will make use of statistical tools to test the existence of relationship, if any...

Words: 561 - Pages: 3

Complexities of the Us Economy

...Complexities of the U.S. Financial System Professor Crawford Finance 100 10/28/2014 Complexities in the US Financial System The Federal Reserve System is the most powerful component of the US Economy. The Federal Reserve is made up of four components. There is a seven member Board of Governors that direct monetary policy. A 12 member Federal Open Market Committee (FMOC) that sets the target for the federal funds rate which also guides the Federal Interest Rate. 12 regional banks that supervise commercial banks in their respective regions, these regional banks also implement monetary policy for the commercial banks to follow. The FED also has a designated Economist who provide information and reports to congress. The Federal Reserve’s primary function is to control inflation without triggering a recession. The FED’s work together with the Treasury Department to avoid or counter any global financial crisis. The FED has been diligent in the past 20 years and more effective in the past decade to assist in the rebound of the economy crashing in the mid 2000’s. “The financial crisis of 2008 led to the worst recession since the Great Depression of 1929. This was despite aggressive efforts by the Federal Reserve and Treasury Department to prevent the U.S. banking system from collapsing. As a result of the recession, housing prices fell 31.8% (What Was the 2008 Financial Crisis? Causes, Costs and Whether It Could Happen Again, by Kimberly Amendeo) more than...

Words: 563 - Pages: 3

State of Us Economy

...This essay shall discuss the most current U.S. GDP figures and the current state of the economy. It will also discuss how the current state of the economy will or will not impact my organizational profitability, using the Timken Company. The most current figures available for GDP are in reference to 2014. GDP is the measure of all final goods and services made in a year, and made in the United States. This does include foreign country operations that are located in the U.S., however it excludes U.S. plants in foreign countries. The GDP numbers are important because it represents how well the economy is doing. An economy doing poorly will have lower profits for businesses, which effects stock price. This is significant to investors that look at GDP growth, and if it is negative it could suggest that the economy is in a recession. The real GDP is the most looked at figure in discussion with the economy. Real GDP is comparing one year to the other taking out the effects of inflation calculated by the Bureau of Economic Analysis (BEA). According to the BEA, the U.S. GDP increased 2.4 percent in 2014 from the figures found in 2013. The results I will also look at is the latest fourth quarter of 2014, because GDP is reported quarterly as well. The GDP is a very in depth and comprehensive report, therefore I will concentrate on the most important numbers that the report contains. The extras that the report contains breaks down personal consumption expenditures, gross...

Words: 1083 - Pages: 5

Us Economy and Gdp

...1. In 4-5 paragraphs, discuss the history of the US economy including productivity, growth, markets and government regulations. 2. In 2-3 paragraphs explain GDP: what items are included & excluded and why intermediate goods and services are usually not included directly in GDP. 3. Rank, i.e. list, the following in order of increasing (from negative to positive) cross – price elasticity of demand with coffee. Explain your reasoning. - Bleach - Tea - Cream - Cola 4. In 3-4 paragraphs, provide examples and discuss how the “Rules of the Game” impact the US economic growth and productivity. What current US economic Rules of the Game are impacting economic growth today? 5. In 2-3 paragraphs, discuss how markets coordinate the independent decisions of buyers and sellers? • In 4-5 paragraphs, discuss the history of the US economy including productivity, growth, markets and government regulations. The US economy has evolved significantly over the two hundred-plus years of its existence. In the early years, most productivity was similar to the rest of the world. The country was nearly all agriculture and growth was dependent upon gaining more land. As the years went on, the country was growing quickly. Agriculture was still a large part of the economy, but industry was beginning to take a much larger share of production. The country was rich in resources like Coal and iron ore, and improvements in physical capital made farming easier and more......

Words: 1497 - Pages: 6

The Us Economy

...The US Economy Clark University The US Economy Like any economy, the United States experiences growth, contraction, and periods of increased volatility throughout any given time period. This analysis seeks to provide a concise report of the current state of the US economy based on the latest data metrics provided in the reports published by the Wall Street Journal. The following information delves into the quantitative and qualitative aspects of the economy’s growth and employment, consumer activity, inflation, housing construction and sales, and international trade. The first metric to be examined is more than likely the one that the average citizen thinks of when thinking about the current state of the economy: Unemployment. It affects virtually every metric from the Gross Domestic Product (GDP) to the Consumer Price Index (CPI). The long term figures by the Bureau of Labor Statistics noted in Appendix A display that the unemployment rate has been on the decline for a significant period of time, and furthermore, is expected to close the 2015 year at a rate of 5%, with the potential to plummet further to 4.6%. The decline appears significant, especially considering the Labor Force experienced growth. Secondly, the GDP should be taken into consideration, as it’s one of the most useful statistics when looking at the health of an economy. The GDP for October is 18 trillion dollars, down from 18.01 trillion in September. As explained in the......

Words: 711 - Pages: 3

The Us and Iran: Foreign Policy and Economy.

...Lusenko Yulia, Eurasian National University after L.N. Gumilyov The US and Iran: foreign policy and economy. Foreign policy Nowadays, there are no formal diplomatic relations between the Islamic Republic of Iran and the United States of America, instead of exchanging ambassadors, Iran maintains an interests section at the Pakistani Embassy in Washington, D.C., while the United States has maintained a corresponding interests section at the Swiss Embassy in Tehran. Since December 2011, the United States has also maintained a virtual embassy on-line. Historical background. The United States and Iran (then called Persia) established diplomatic relations in 1883. 1979- revolution against the shah.-The United States broke diplomatic relations with Iran in 1980 after a group of revolutionary Iranian students, angered that the deposed Shah has been allowed to enter the United States, seized the U.S. Embassy Tehran and took 52 Americans hostage The United States has long-standing concerns over Iran’s nuclear program, sponsorship of terrorism, and human rights record. The United States and the international community have imposed comprehensive sanctions against Iran to compel Iran to engage seriously in discussions with the international community and address concerns over its nuclear program and human rights abuses. US sanctions against Iran refer to economic, trade, scientific and military sanctions against Iran. On July 14, 2015, the United States, along with China,......

Words: 481 - Pages: 2

Us Healthcare Industry and the Us Economy

...The Love-Hate Relationship between the U.S. Healthcare Industry and the U.S. Economy The healthcare industry plays an important part in the economy of the United States. The sustained increase and high level of spending on health care has been the subject of discussion and scrutiny for several decades. The enactment of the Patient Protection and Affordable Care Act of 2010 (ACA) was hardly the first fiscal policy for healthcare in the history of the economy. There is a long list of fiscal policy attempts from predecessors such as Franklin Roosevelt, Harry Truman, Richard Nixon and most recently Bill Clinton (Sparer, p462). In 1933, Franklin D. Roosevelt drafted amended provisions to his pending Social Security legislation to include publicly funded health care programs but ultimately removed the provisions due to opposition by the American Medical Association (Coombs, p5). Following the Second World War, President Harry Truman called for universal health care as a part of his Fair Deal in 1949 but strong opposition stopped that part of the Fair Deal (Peon, p161-168). On July 30, 1965 President Lyndon B. Johnson signed into law the legislation establishing the Medicare and Medicaid program, social insurance programs administered by the United Stated government providing health insurance coverage to people who are either 65 or meet other special criteria for need (Roemer, p845). In October 1972, President Richard Nixon signed the Social Security Administration......

Words: 3827 - Pages: 16

Improving Us Economy

...Paul Garrido Prof. Bayes September 30, 2014 ! Improving US Economy The United States economy relies heavily on world trade. Natural gas and oil companies, and the importing and exporting of their goods, play a major role in the fluctuation of the economy. However, regulating imports and exports is easier said than done. Opinions differ between those at the top of these companies and also between other influential members of our government, including the President of the United States. President Obama believes that we can improve our economy with the increase of fuel exports. Andrew Liveris, the chief executive of Dow Chemical (a company that depends on natural gas) believes otherwise. He believes that if we export our natural gasses, the economy will be impacted negatively. Both President Obama and Andrew Liveris share a common goal; the bettering of the economy of the United States. The United States has been using energy to reshape the economy. During his presidency, President Obama has driven the value of U.S. fuel exports in a positive direction. Obama hopes to double the fuel exports from the United States by 2015. He believes that fuel exports will help create middle-class jobs in the manufacturing industry. This boost in middle-class jobs, along with money earned from exporting these goods, can potentially be the stepping stone to improving the economy. GARRIDO 1 ! Andrew Liveris has a different outlook then Obama. He views the exporting...

Words: 407 - Pages: 2

Economy in Us

...ECO 2013 Name: Denicson Suarez Article 3 When The U.S economy is the envy of the world ECO2013 Name: Denicson Suarez Article 3 When the U.S economy is the envy of the world. Right before the new job numbers report came out, Catherine Rampell who is a journalist brought a very good point by telling to those who are not happy with the recovery of the U.S economy that it could have been worse. According to Benen, people tend to forget the reason of the actual slow recovery of the U.S economy. One of the main reasons of the slow recovery is that the global crash in 2008 has been the worst in years since the Great Depression happened. However, it is encouraging to compare the U.S recovery with the rest of the world, reason for which President Obama in one of his weekly address quoted that U.S is the envy of the world. Despite the strengthening of the economy, the creation of about 11 million new jobs, more Americans with health insurance, President Obama said that there are a lot work to do in order to create the strongest economy ever. He compared the growing of the U.S economy with countries from Europe and Asia and by far we have a great advantage over them, and as Rachel Maddow said in her show “the U.S. remains a standout as the rest of the world struggles.” Despite the good news there are a lot people that still unhappy with the recovery of the U.S economy, and some people argue that the creation of new jobs have been based in just part-time jobs.......

Words: 415 - Pages: 2

Fall of Us Economy

...George Marrero Poli Sci 101-51 April 6, 2015 During the later half of the 20th century U.S economy was the most powerful economy in the world, they set the rules for rest of the world. They established multinational corporations all over the world, which was indeed the heart of world economy. (Davis, 2009) When the U.S economy was rising, all the other countries’ economies were also growing, at the same time when their economy went down it affected almost all the other importing and exporting countries in the world because of the recent crises which was named as “GLOBAL FINANCIAL CRISIS”. This was meant to be the biggest crises after “THE GREAT DEPRESSION 1930” (Cambridge Journal of Economics, 2009). The crises have already recorded loss of over $150 billion and large numbers of banking institutions have declared bankruptcy or being sold. (Kregel, 2008) One among the banks filed for bankruptcy was Lehman Brothers, which was Fourth largest investment bank in U.S. (BBC, 2009). Therefore it is important to identify causes of current financial crises and resolution measures. Secondly, UK government should take effective steps in order to reduce danger of further crises. (Turner, 2009) During the later part of the 20th century, that is 1973, Daniel bell published a book titled “THE COMING OF POST INDUSTRIAL SOCIETY”. The book was about forecasting to find the changes in economy and society in the United States. One of the most visible changes according to him was the work......

Words: 1757 - Pages: 8

Us Economy 2016

...its trade deficit. At current exchange rates, the strength of the U.S. economy, combined with slow growth in demand in many other parts of the world, will lead to further widening of the U.S. trade deficit. How long can the trade deficit continue on that trajectory without disrupting the U.S. economy or the world economy? Absent structural reforms in the United States and abroad, a large devaluation of the dollar, or significant changes in the business cycle, both the trade and the current account deficits will continue to widen until they become unsustainable, perhaps two or three years out. Changing the trajectory will be difficult. The U.S. trade deficit is now so large that even if world economic growth were to pick up and boost U.S. exports, U.S. imports would have to slow dramatically for the gap to narrow. To shrink the trade deficit significantly, say, over a two-year period, exports would have to grow twice as fast as they did in the 1990s, when growth averaged 7.5 percent a year, and the growth rate of imports would have to be halved, from 11 percent to 51/2 percent a year. Moreover, following twenty years as a net recipient of capital inflows, the United States will soon be confronted with much larger service payments. At some point, either the United States' negative net international investment position and the associated servicing costs will become too great a burden on the U.S. economy or, more likely, global investors will decide that U.S. assets account...

Words: 2443 - Pages: 10

How China’s Currency Manipulation Affects Us Economy

...How China’s Currency Manipulation Affects US Economy Howe School of Technology Management Principles of Economics How China’s Currency Manipulation Affects US Economy Currency intervention is the action of one or more governments, central banks, or speculators that increases or reduces the value of a particular currency against another currency – this is according to Wikipedia. From January until October in 2010 imports from China to the United States this year were $299,026.0 million and only $72,276.2 million in exports to China, leaving a U.S. trade deficit of -226,749.8 million - this is according to the U.S Census Bureau U.S Foreign Trade Statistics. Here we can examine that Chinese imports to the United States were too high which makes U.S. Gross Domestic Profit (GDP) shrink because imports are subtracted to the Gross Domestic Profit. This trade deficit causes damage to the United States manufacturers and destroys jobs. Chinese products are very attractive because their low labor cost. When U.S. people purchase Chinese manufacturing goods, their manufactures are compensated in dollars which are placed in a United States bank account. Then, the Chinese need to exchange the dollars to Yuan and as a result via their banks they sell the dollars to the Chinese Central Bank which is known as the People’s Bank of China. Given that the U.S trade with China does not balance, the result will be a shortage of the Yuan and a......

Words: 833 - Pages: 4

facebook | Боруто: Новое поколение Наруто / Boruto: Naruto Next Generations [01-79] (2017) WEBRip-HEVC 1080p | Kansai | Big Little Lies