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Economy Situation In The USA - Essay Example

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The essay "Economy Situation In The USA" focuses on the rising income of the most important impacts that the global financial recession has left back in the economy. Besides, Income inequality, on the other hand, leads to a large number of economic hitches such as poverty and unemployment. …
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Economy Situation In The USA
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Download file to see previous pages The main problem looming around the economy of USA is that of a deteriorated trend in the economic growth rate. Noted economist Ragu Rajan revealed that it will be wiser for the national authorities to focus more upon long-term structural issues such as unemployment and income inequality. In addition, it will also be wise for the national administration to arrange for some vocational training for the national youth as well. In fact, it could easily be realized that unemployment is the reason behind a rising rate of income inequality in the nation. Observers researching this aspect have figured out certain areas which need to be emphasized upon by the national authorities while framing their respective fiscal policies.These measures have been described as follows. Firstly, it has been realized that the national population or rather the labor force is suffering from a lack of productivity which the reason why the creation of economic value in the nation has been poor. This is the reason why it has been stressed that the finance committee must lay some emphasis upon investing more and more funds for industrial innovation. The higher the incorporation of technology into the production process, lower will be the efforts that a labor needs to put for the production of a single unit; hence he will be left with more energy to produce excess units within the same time period. In fact, this is the method being followed up in Europe that concentrates upon a stable innovation path so as to stick to a stable economic growth. ...Download file to see next pagesRead More
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