As the world changes, new products are introduced and new technologies are developed, some unemployment is inevitable. However, there can be a positive side to job searching because an individual can possibly find a better job. Even though no one can quite know which way our economy is heading, by closely observing our gross domestic product (GDP), business cycle, and unemployment rate we will have a better understanding. Because our world is so dynamic, there are so many variables that can change in an instant creating a peak or recession in our economy. The most important thing to remember, however, is neither a peak nor recession last forever so the only thing that remains constant is change.
Those who are still employed, and who plan to be employed throughout the current recession, would more than likely consider upgrading to a bigger home if they knew that right now is the ideal time for them to buy, before there is another peak in marketing. The economy works in cycles, anyone can tell you that we must learn from our history. Right now we are going through a recession, millions are unemployed. However, this does not mean that the world is ending. The economy will recover, some financiers even believe we are already in the process of recovery.
While the United States may have some of the most successful companies on the planet, America is not as entrepreneurial as it once was. Immigrants, on the other hand, are exceedingly opportunistic even in the roughest of economic situations. Although many Americans think immigrants are a problem rather than a solution, the United States government needs to make it easier for entrepreneurial immigrants to become citizens because immigrants create businesses that employ Americans and will help the whole nation increase total employment. Job creation is a multi-faceted issue but one thing is for certain: new businesses create new jobs. In fact, economist Carl Schramm says, “The data, frequently used in studies by the Kauffman Foundation, show that all net new job creation in America comes from companies less than five years old!” (Forbes).
As a result of this economic growth families will begin to feel more confident and will begin to spend more of their money instead of saving it because they believe that will receive a pay raise or will find a better job. (Amadeo, 2016) Borrowing also increases when economic activity is high people begin to borrow from banks and other places because they feel that the government has been doing a great job managing the economy. (Amadeo, 2016) As we have seen in 2008 people should never get to confident in the economy because our economic bubbles are used to crashing when they are doing very well and it’s never really the people’s fault it’s the governments. Although inflation begins to rise when the economy is doing great one of the things that is known to bring prices down is competition among businesses. Competition is great because one company will attempt to sell a product for a cheaper price than another company which results in lower prices the same as you see with cell phones and automobiles.
Based on the calculations, it is clear that Amazon generated more revenue during 2010 to 2013. The revenue increased from 34.204 billion to 74.452 billion. However, the revenue growth rate dropped from 39.56% in 2010 to 21.90% in 2013, which means that the revenue growth was slowed down during this period. Amazon’s gross margin remained stable during ths same period. These facts indicate that Amazon’s cost of goods sold grew faster than its revenue.
Apple is a Company based out of the United States, and was impacted greatly by our economy here. Though it didn't suffer as much as other corporations during the recession, they still took a hit from it. Since then the economy has gotten much better overall. The unemployment rate as of December 2013 was 6.7% which is much lower than the 7.3% it was in July 2013 ("Economy at a Glance "). As a number it doesn't mean much but after analyzing it you can conclude more people will have jobs now, and with jobs be able to spend more money.
So far the prior four times the Federal Reserve has raised rates not much has happened. I am predicting that if the current rate hike does not effect the market, Federal Reserve Chairman Alan Greenspan will raise rates again in March and May to slow our prosperous economy. The reason why a rate hike will slow down the economy is by raising the overnight rate to 5.75, the highest since 1995, it has made borrowing less attractive. In turn, corporation will have less money to invest then productivity will go down, hence supply will go down and demand will soon follow. Right now though productivity numbers released in January showed that it is on the rise, which has keep inflation in check.
As our economy has successfully grow and become stronger, the desire to grow more is increasing, which leads to less regulated market system (approaching the free market). New stuffs are produced for the purpose of ‘efficiency’ and may be happiness. However, the level of efficiency from growth has its own limit. McKibben on his book talked about how over-producing may lead to a waste of resources instead of increasing efficiency (McKibben). For example, because of the increase in cell phones market, cell phones manufacturers are competing by adding more small features that may be unnecessary for peop... ... middle of paper ... ...ing constant growth, many alternatives could be performed in order to position the economy at a better state.
It is no secret that the U.S. manufacturing sector has been in decline over the last 30 years. But a strong rebound in the production of durable goods such as cars and electronics, has helped revive the manufacturing sector and stimulated recovery from the recession. As early as 2013, manufacturing output only 4 percentage points was below the pre-recession peak level. A comparison between countries shows that America has fared better than most other G7 countries except Germany. But the recovery in Germany has stalled since mid-2011, while the United States is gaining momentum.
This policy is not a permanent solution but a mere foundation to the solution. This can be the first step into fixing the immigration policy in the country. It is imperative that we act now rather than later. If an immigration policy is not produced, America risks losing its comparative competitive advantage to China or other emerging nations that accept and integrate their immigrants into their fast growing economies. In the past America knew that immigrants served as a stimulus to the economy and also increase the diversity of the labor pool but it seems to have forgotten this as it climbed to the top.