The US economy in recent years has improved if you consider the economic downfall in 2008 when the market crashed. During the Great Recession between 2008-2009, nearly eight million U.S. jobs were lost and the unemployment rate in 2008 was 6.5% in 2009 it reached its pinnacle going up to 10%. Furthermore, the Bureau of Labor Statistics shows that this percentage has decreased significantly to 4.9% in 2016, meaning that more people are working then previous years. During the recession, the GDP wasn’t rising because the economy was at its peak in 2009, however its currently rising while the economy is recovering from its past downfall. For inflation, we improved a little bit in 2016 we are currently at 1.5%, and in the previous two years we were
The above diagram shows the GDP growth rate of United States of America during the recession. From 2008 to 2009, the GDP growth rate of USA fell from approximately +3 to about -7. After President Obama created the Stimulus plan in 2009, the GDP growth rate increased rapidly from -7 to almost +5. This shows that the policy applied by US government works very well to help America recover from Great Recession. Besides, the US government did cut taxes. This was successful as it increased the net income of people. American can have more money in their pocket to spend. Moreover, the Federal Reserve decreased the interest rate to help United States to get out of the recession. Reduced in interest rate help the economy by encouraging
In conclusion, the current macroeconomic situation in the United States is characterized by moderate growth because of better economic conditions that were brought by the events of 2013. The country has experienced moderate economic growth since the 2008 global recession but has shown real signs of momentum. While the country is not concerned about recession or inflation, the rate of unemployment is still a major challenge despite improved consumer and business confidence. As a result, the Federal Open Market Committee or Federal Reserve System needs to adopt fiscal and monetary policy initiatives that help address the unemployment issue and promote high economic growth.
After all the research on this recessional era, I have concluded that the recession was not as extreme until the terrorist attack, which deeply affected the United States. The recession became worse after the attack, and many things were affected by this, including jobs, the government, and families. The fiscal and monetary policies would have been more affective as long as the terrorist attack wouldn’t have happened. The government handled the recession as well as possible, and the policies enforced worked, but not as fast as it could have. After working towards strengthening the economy for three years after the recession had officially ended, the government had finally gotten everything back on track.
The economy’s predictions of course, are not always right. But these leading and lagging indicators are here to help you decide what you believe. Is the economy getting worse and are we headed towards another recession? Is the economy getting any better, even better then ever? At the moment, this very economy is known to be in a recession, though some people say we are no longer in one. So, is the economy in a recession? Use this information so you can form an opinion but just remember before you decide, it’s always up to the government and the people part of the economy to decide where we are heading. It’s our spending and our choices that put us where we are now.
Many United States' citizens are unaware of the country's current financial state. Many assume that one of the world's wealthiest countries could never be in debt. This is untrue however, and, in fact, the country with the greatest income per capita is in major debt. This study will examine possible solutions to reducing the United States' national budget deficit.
... for the economy. Concerning the economy of the United States it is still alarming. Neal Asbury, writer from Money News stated that US can recover their economy by reducing their taxes and regulations to grow small businesses and then rise the employment rat. They need also to ensure banks are healthy and they can provide money to entrepreneurs and they also need to expand the global trade by lowering the barriers against the manufacturers. ( Asbury 2013)
Since, the beginning of Donald Trump’s Presidency, the stock market has improved increasingly and unexpectedly. Trump’s Presidency has helped improved the stock market, and a month after the election the S&P 500 witnessed a huge increase of two percent. As the charts demonstrate, Trump’s Presidency has created an unexpected improvement in the S&P 500 and Dow Jones Industrial. A solution that Trump is using to fix the economy is the creation of more jobs in the United States. While the economy is improving from the Recession in 2008, the rate of unemployment has presented a major challenge for citizens in the economy. However, with Trump’s solution to increase jobs in America, the unemployment rate has continued to decrease. "To get the economy back on track, President Trump has outlined a bold plan to create 25 million new American jobs in the next decade and return to 4 percent annual economic growth,”(Bryan para 3). Since, the recession of 2008, unemployment has decreased substantially. As the graph
It is to my belief that no one can possibly predict the future of the economy. Because of this we are faced with many questions that cannot be easily answered. Will the economy recover drastically or simply continue to increase moderately? Or could the economy in turn go into a recession? “There's been plenty of good news about the U.S. economy… employment is expanding (2.4 million new payroll jobs in the last year); inflation remains low (less than a 2 percent rate in the past quarter); the stock market is higher (up 11 percent on the Dow from its November low), and business investment is impressive (rising at a 14 percent rate in late 2004).” (1) It is my opinion that unless something drastic happens in the world today, positive or negative, the economy will continue to increase at a modest rate. Even though no one quite knows which way our economy is heading, there are many economic concepts designed to help measure positive and negative changes that can show us how well we are or are not doing. These concepts include examples such as gross domestic product (GDP), business cycle, and unemployment rate.
According to The Balance, a financial website brand owned by About.com, the causes of the 2008 recession have been blamed on certain factors such as the decline of manufacturing orders that began in 2006, and the housing market crash in 2007 which created a domino effect that lead to recession. According to Investopedia, in the short time before the 2008 recession, stocks were at an all time high in October of 2007. Less than a year later in September of 2008, stocks were down over 20%. This is eerily similar to today’s massive growth in the economy which could eventually fall like 2008’s. One of the largest indicators of where the economy is heading stems from the current politics of the United States. Economic plans of the Trump Administration such as an investment in infrastructure, promises to lower taxes, and bringing jobs and production back to America, have arguably been some of the reasons for such a large amount of speculative growth in the economy. Unless Washington does in fact follow through on their end of the bargain, the growth that our economy is seeing today can turn in the opposite direction in the blink of an eye. Some signs of a future recession of the economy have come just recently from the unexpected unemployment increase. According to CNBC, in March of 2017, 98,000 jobs were created although it was estimated that 180,000 were
...ing better, it’s going to take years to overcome the issues that have come about in this recession. Over time stock markets will increase when the employment rate is on the rise. Businesses will begin to thrive and the economy will start to rise. Thousands of people are still collecting unemployment today and have hopes that job openings will come about in the near future.
The current state of the economy in the United States has been slow in recent months. While the economy is not currently in a recession, we may eventually fall victim to the first recession we’ve had in nearly ten years. The economy in general is showing growth, just not much. It will be difficult to predict what exactly will happen to the US economy in the future. Many economists do not agree on what will become of the economy. Some feel that we will begin a recession over the next year, and some feel that there is significant policy implementation that will allow us to dodge a recession and regain our economic strength. There are many factors that make up the US economy. The means in which I will discuss the overall growth and current status of the economy is by analyzing the Gross Domestic Product, and discuss the factors that cause it to rise and fall.
A lot can be learnt from this economic indicator. High levels of inflation indicate an unp...
In summation, based on these three but important economic variables one can expect slight improvements for the economy in different aspects. The best news appear to be an expected rise in projected consumer spending, while a steady unemployment rate is expected, and small but substantial growth in GDP seems to be around the corner thanks to an encouraging PMI that reports expansion at a lower rate.
Today, our nation is in a recession. Nobody can deny that. No politician, no Wall Street financier, no journalist, can say otherwise. The discrepancies lie with the principle method of economic response to this crisis. Some politicians point out the unemployment rate and call down the powers of Congress to decrease it. Others still look to the devious inflation percentage that lurks behind, as a shadow, ready to cut purchasing power and increase prices. Unfortunately, as the Phillips curve warns us, the two are irreconcilable. Lower inflation invites higher unemployment, and increasing employment beckons heightened prices. The discrepancies lie with the classic battle between controlling inflation and unemployment. Though it may be the less popular choice, politicians should concentrate on curbing inflation as it has a great impact on our economy and is a more accurate indicator of economic stability.
“The January employment report provides yet one more piece of evidence that the chance of recession this year is truly remote,” said Bernard Baumohl, chief global economist for the Economic Outlook Group in Princeton, N.J. “Economic activity should accelerate this year as rising employment, income, home values and confidence drive more spending,” and he was right. “The financial markets are leery,” said Michael Hanson, a senior economist at Bank of America Merrill Lynch, “but the labor market still looks like it’s continuing to grow.” The new figures suggested that the economy was holding up even with a slowdown in China, growing risks in emerging markets and uproar in the stock market. The slowdown in Chinas production gives the USA the chance to compete with products, quality, and pricing. The decrease in unemployment rate has the Federal Reserve thinking if they should increase the benchmark interest rate, in other words inflate the cost of living or not, according to the NY Times article, “Slower Growth in Jobs Report May Give Fed Pause on Interest Rates.” The economy is getting better but is not yet at its peak or strong enough for an inflation to take place but if the economy keeps going up in the next year or two expect it to happen. Most of our countries unemployment rate decrease is due to all the workers retiring which helps companies promote workers and have more entry positons for new employees. Also the raises in salaries and hourly rates help discouraged workers be more attracted to go back into the work