Argument for a Current Political Issue - Research Paper Example

The rate of unemployment, mortgages, housing, insurance, and manufacturing, among other sectors, are some of the key areas that affect the U.S economy. The European colonization between the 16th and the 18th centuries was the root of the U.S history. In 1776, 13 small farming economies integrated themselves to form one, and they formed the United States economy (Lattimer, p7). The growth of the U.S economy was accredited to high productivity, a legal system which was supportive and the availability of a market which was large and unified.

The United States economy is the world’s largest national economy. The $2 trillion difference between its GDP and that of the EU makes it the world’s second largest overall economy.The high levels of capital investment and research, the overall GDP growth rate and the moderate rate of unemployment make the U.S economy to be a mixed economy (DeNavas-Walt, Proctor, Bernadette & Smith, Jessica p25). As of 2011, the GDP of the United States was estimated to be about $15 trillion dollars with a per capita GDP of $48,328.

The per capita income of the U.S is the sixth highest in the world and this makes it to be one of the world’s wealthiest nations. . S is extremely active. In terms of market capitalization, the New York Stock Exchange is the largest in the world (DeNavas-Walt, Bernadette, & Smith, 48). The economy of the U.S is controversial because any alterations to it will result to a ripple effect in the whole country. The economy determines the investment, the health care, the education system, the security of the country, and every other sector.

The economy is the back bone of the country and this is the main reason why it is a political issue that causes controversy and much debate especially during election times as witnessed recently in the presidential elections. There are two parties that are involved in the political tussle of the economy. These two parties are umbrellas of the interest groups and the key politicians involved; the Democrats and the Republicans. Below is an outline of the stand that both the Democrats and Republicans have taken on the economy.

The Democrat Stand On the issue of minimum wage, the democrats support a higher minimum wage with increases on a more regular basis. The six state ballot initiative to increase the minimum wage were all passed by democrats in congress in 2006, a move that shows their support of higher minimum wages (DeNavas-Walt, Proctor, Bernadette & Smith, Jessica p22). Education is also a pertinent issue of the economy. In this case, college education is the central issue. Democrats have a long term goal of providing low-cost college education that has been subsidized by the public for the purpose of lowering tuition fees.

This can be achieved by increasing the state funding for student financial aid. The democrats have divergent opinions on the issue of trade agreements. The liberal part of the democrats supports globalization while