The fiscal stimulus for the amount of billion dollars was something that was passed by the president to be used for social welfare and economic structure repairing process. Become a Freelance Writers Place an Order The bankruptcy of banks like Lehman Brothers was the worst era for US economy where they found trouble in managing the mortgage prices, investment failures, credit failures and so on.
Other than this the expenditure upon the security of the country from outside attack is something that has affected the US economy negatively.
Now the contribution or the role of oil is very significant in US economy. It has been estimated that by thethe total cost for wars was near to billion dollars which are very huge amount from economic growth perspectives. According to M Sharif, this high GDP ratio has become the actual basis of economic growth, which registered increase in the national savings.
The weakness of the US economy on the other hand, is represented by the deteriorating Housing market, which is causing the economy to slow down. The United States ministry of finance as well failed to ensure strict control of funds in circulation.
Amadeo noted that analyst forecast GDP growth rate for the rest of and beyond to be between 2 and 3 percent a year citing the Congressional Budget Office CBO forecasts growth to be 2. The country still enjoys economic hegemony and with its macro economic programs in place the country will definitely hurdle the current economic challenges the country is facing.
Unequal distribution of wealth is another factor that could be realized in US economy over the recent past or industrial development time.
Thus, the technology works positively in the long run and negatively in the short run. The reason behind the economic recession is the socially huge spending habits of people and low saving ratio.
Productivity relates an increase in output to the rise of inputs. In the paper presented by the U. However, inthe economy recovers from the impact of Katrina and registered a GDP growth rate of 4. Unemployment can either be a loss of job and the time spent for looking a new one, or seeking job after a period of being out in the labor force.
Still the infrastructure development of US is appreciable and increasing year on year. Funding to an international organization is required so that the interest could be received, and this long term investment can strengthen the base of US economy.
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It determines the unequal distribution of wealth and employment opportunities. According to the paper published by the United States Department of Labor entitled Productivity and Costs, Fourth Quarter and Annual Averages, the fourth quarter productivity of yielded an increased of 1.
The US has plenty of natural resources, but most of them have been utilizing for inside consumption. Thus when unemployment rate is worse, it confirms the worsening economic condition. Dean Baker, Co- Director at the Center for Economic and Policy Research in Washington, DC pointed out that the main grounds pushing the economy into recession is the weakness of the housing market p.
Baker explained that this slump in the housing will have a domino effect on the consumption growth as consumer borrowings against home equity will plummet due to lack of further equity to burrow against.
Another problem that America started to face is related to high import ratio as compare to export. At the same time, the US economy has faced huge level of growth in literacy ratio. The economic structure come into trouble as the US government put their leg into wars with Iraq and Afghanistan and were in search of terrorist groups and their leaders.
The country spent billion dollars every year to protect their territory or boundary. Technologically the US has seen highest advancement and development that is sufficient enough to grow the economy as compare to other countries. Labor productivity as an economic measure refers to the contribution of capital and labor inputs and is defined as an increase in output per labor hour or laborer.
McDonough, President of the New York Federal Reserve Bank, pointed out that the United States has experienced economic expansion since s and maintained this expansion for eight consecutive years that created millions of Jobs, stabilized prices, and lowered the unemployment problems.
The unemployment rate steadily declined in untilwhich has stabilized at 5.
It was the actual scenario of US that people earn less, but they spent more than their earning. The technological areas have brought down the revolution in entire world and America has become the pioneer of such advancements.
With its current rising unemployment rate in the US, it confirms that the US economy is in worsening condition.The economy of the United States no doubt is still the world’s biggest economy despite of the looming economic depression - The Economy of the United States introduction.
The country still enjoys economic hegemony and with its macro economic programs in place the country will definitely hurdle the current economic challenges the country is facing.
Ironically, the good news is that, while United States governed Congress helped out to generate this chaos with poor economic and foreign policies, she can assist to overcome it. Still, U. S. is the best-positioned to make sustainable advantage of the growing world economy in the global marketplace.
The economic problems that are plaguing the United States economy at the present are numerous to say the least. Since the collapse of the Housing market, the United States has experienced what some have come to call an economic recession.
The United States economy experienced ups and down in its journey to realize the economic power it enjoys today. After the civil war in the early nineteenth century, the United States’ economy experienced drastic development as a result of urbanization and industrialization.
The U.S. economy is no longer an autonomous entity.
Rather it is increasingly part of a globally based economy. This means that companies which formerly existed only in the United States, like General Motors, are opening plants in foreign countries, thereby utilizing the. Disclaimer: This essay has been submitted by a student.
This is not an example of the work written by our professional essay writers. This is not an example of the work written by our professional essay writers.Download