Current Economic Situation - Essay Example

Comments (0) Cite this document
After the Great Depression, the US economy developed its manufacturing industry, creating a rise in suburbs. However, the current crisis favors ideas; creating a rise in highly flexible, diverse and…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Current Economic Situation
Read TextPreview

Extract of sample "Current Economic Situation"

Spatial Fix and the Economic Model of Life in the Aftermath of the Current Crisis of School Every crisis in the USA brings along a new social and economic lifestyle. After the Great Depression, the US economy developed its manufacturing industry, creating a rise in suburbs. However, the current crisis favors ideas; creating a rise in highly flexible, diverse and creative labor force, demanding a dominance of a new social class and new spatial fixes or so called geographic centers.
According to Florida (2009), the USA has undergone crucial economic and social transformations with each economic crisis. The technological improvements and the rising manufacturing industry created a need for lower costs of production: cheap land, healthy and mostly sedentary labor. As a result, the USA witnessed a growth in suburbs. Then the 1970’s recession destroyed the predominantly industrial cities and created a way for the growth of the knowledge sectors and new geographic centers.
The economy suffered from the inefficiencies arising from the manufacturing era. The West Coast experienced a boom, but many cities focused on cheap yet appreciating housing, turning it into its main industry. Yet, as Florida (2009) outlined in his article, such development was too one – sided so that once the crisis occurred, the housing markets crashed, as did the local economy’s major industry.
On the other hand, places such as New York have survived and will remain centers of innovation and progress. The latest developments have favored flexible, innovative and international labor force. Moreover, areas harboring such labor force are also diverse in terms of the skills and services these individuals provide. Such a labor force creates new ideas and easily takes over the economy once one segment of that economy falters. For example, whereas the finance, housing and industrial sector suffered, academics and scientists benefitted from this crisis, and so did the cities harboring them, thus creating new spatial fixes around which new forms of social structures will form.
The social structure will change over the next decade or more. According to Florida (2010), the high paying workers will profit from their creativity just as the workers in the manufacturing areas benefitted after the Great Depression. Moreover, suburbs and their communities will become denser, more diverse and connected, responding to the need for fast communication, production and delivery of ideas. A change in homeownership will arise, where renting will become more widespread, increasing mobility of workers. In short, Harvey (2001) borrowed the term “annihilation of space through time” from Marx to describe the current process of globalization of capital and labor. (pp. 23)
Gottham (2009) argues that securitization is a cause of the disturbed spatial fixity. Securitization created liquidity for the equity markets. Mortgages were resold as securities several times faster than the house itself could ever change hands. Gottham (2009) argues that securitization of markets created liquidity out of spatial fixity. (pp. 357) However, this change has led to a crisis and a new uneven development, from which new classes benefitted and the old lost.
To sum up, the current crisis has arisen from the disturbed spatial fixity and it brings with it new social class and social structures. Denser and more diverse suburbs and centers of ideas will form new subcultures within the USA. Florida (2009) argued that the Great Depression affected the ways in which families distributed resources from within, favoring the ones who suffered the most from an economic crisis. Time will show what new forms of family arrangements, laws and social norms will arise out of these changes, especially in the denser suburbs.
Florida, R. (2009). How the Crash Will Reshape America. The Atlantic, 6.
Florida, R. L. (2010). The great reset: How new ways of living and working drive post-
crash prosperity. Toronto: Random House Canada.
Gottham, K. F. (2009, March). Creating Liquidity out of Spatial Fixity: The Secondary
Circuit of Capital and the Subprime Mortgage Crisis. International Journal of Urban and Regional research, 33, 355–71.
Harvey, D. (2001). Globalization and the “Spatial Fix.” Geographische revue:
Zeitschrift für Literatur und Diskussion, 2, 23 -31. Read More
Cite this document
  • APA
  • MLA
(“Current Economic Situation Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Current Economic Situation Essay Example | Topics and Well Written Essays - 250 words. Retrieved from
(Current Economic Situation Essay Example | Topics and Well Written Essays - 250 Words)
Current Economic Situation Essay Example | Topics and Well Written Essays - 250 Words.
“Current Economic Situation Essay Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Current Economic Situation

Describe the current Australian economic situation and support your claims

...economic downturn. What started with the subprime mortgage crisis has now created widespread economic panic which has even resulted into the downgrade of credit ratings of the largest economy of the world. The emerging sovereign debt crisis has exposed many governments’ ability to maintain a sustainable level of debt. The Euro Zone is actively looking for new ways and means to support economies like Greece, Spain, Portugal, Italy to avert their sovereign default. Considering such situation, the overall growth prospects for the world economy are suggesting a stagnant growth rate of approximately 4.5% for current year and for the year 2012 and 2013. Australian Economy...
4 Pages(1000 words)Assignment

Economic situation

...? Economic Situation Economic Situation Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis. Bureau of Economic Analysis (2013) notes that the United States economy is the largest in the world when measured in terms of purchasing power parity (GDP), which stood at 15.08 trillion dollars in 2011. Despite having the largest economy, the economy was hugely affected five years ago following the economic recession that occurred due to the financial crisis of 2007 and 2008. The crisis saw the...
3 Pages(750 words)Essay

There are signs that the current economic situation is improving

...?There Are Signs That the Current Economic Situation Is Improving Table of Contents Table of Contents 2 Introduction 3 Review of Literature 4 Improving Economic Situations 4 Implication of Improving Economic Conditions on Human Resource (HR) Policies 5 Analysis and Discussion 8 Conclusion and Recommendations 12 References 14 Introduction Human Resource Management (HRM) plays an effective role in managing the people or employees of an organisation. HRM comprises different activities, practices along with policies on the basis of which, operations of the employees are managed, evaluated, developed and maintained. The prime objective of HRM is to maximise the productivity and the contribution of the employees towards the attainment... ...
12 Pages(3000 words)Essay

The current economic situation will force every one to consider carefully how money is spent

...Current economic situation and money spending Introduction The current economic crisis has brought lot of changes in almost every aspect of human life. The depth of the crisis was so severe that even wealthy people forced to change their life styles in order to cut down their expenses. Some reports from one of the most developed and wealthy countries in the world, America has shown that people already started to use line buses instead of their cars in order to cut down their daily expenses. An average American normally doesn’t have the habit of saving money for the future whereas the Indians and the Asians in general save money for the future. Americans, when they are in need of money for making a house or for purchasing a car... , will...
4 Pages(1000 words)Essay

The current economic situation of UK

...for plausible asset allocation along with the recommendations for the future course of action that may be taken. Current economic situation The current economic situation of UK is relatively more unstable owing to the financial meltdown that occurred during 2007. The overall situation is not considered as healthy as the estimates indicate that the UK’s economy will grow at a very sluggish rate as IMF’s forecasts indicate that the UK’s economy is its worst after 1930s. During 2009, UK’s economy experienced a growth rate of just 0.1%1 during the last quarter of 2009 indicating the overall state of the...
8 Pages(2000 words)Essay

Current macroeconomic situation

...Current Macroeconomic Situation Task Introduction Over the few years, the macroeconomic situation has not been at its best owing to the recession that hit the US. Although, the situation has commenced a recovery from the most disastrous period in the financial system of the US not much improvement has been evident. The prevailing microeconomic situation has become evident in most indicators of the economy bringing shocking news to the economists and the public in general. The unemployment has disastrously plummeted from the initial levels in a rate that most people never expected. Despite the augmenting economic productivity in the US...
2 Pages(500 words)Essay

Assessment of The Current Economic Situation in the US

...The Current Economic Situation in the United s The economic situation of a country can be measured by considering aspects such as the level of employment, the economic growth rate, the household spending levels, as well as the interest rates. Following the 2008 worldwide economic crisis, most countries inclusive of the United States are still facing the impacts of the crisis. This paper focuses on the current economic situation in the United States. United States is considered to have the most technologically advanced economy with an approximated GDP of about $48, 000....
2 Pages(500 words)Essay

Current macroeconomic situation

...Current Macroeconomic Situation Current Macroeconomic Situation United s of America’s macroeconomic situation is a debatable subject worldwide. The economy in question has been on recession for the past few years and we can say it is on the recovery path. Despite this (recession) the US economy remains on top of the list in the leading economies of the world. The USA government’s intervention saved the situation that could have otherwise worsened. Unemployment rate is at its topmost. Insufficient or lack of jobs implies that the consumer confidence alongside the sentiment of businesses is at risk. This is a menace to an economy. As much as the United States government is striving hard to curb recession, it is also trying to solve... ...
2 Pages(500 words)Assignment

Current Political Economic Situation of HK

...of Unit Current Situation of Hong Kong Introduction Hong Kongs economy is characterized by minimum government involvement, low taxation, and free trade. It is the eighth biggest economy trading with mainland China. It has a key service-oriented economy linked particularly to mainland China and other countries in Asia-Pacific region (Chen and Andrew, 2011). In 2013, Hong Kong recorded an economy growth of 2.9 percent. The economic growth was 2.2 percent as compared with the same period in 2013. Private consumption spending dropped to 1.4 percent year-on-year. Investment expenditure, which include equipment and machinery acquisition weaken to 1.5 percent year-on-year. Total exports of...
18 Pages(4500 words)Research Paper

The Current Economic Situation in Australia

...level of supply. Interestingly, since oil is arguably the core driver of any economy, lower price of the energy is tipped to strengthen the global output and the rates of inflations are temporarily expected to fall. This study will look to explain the current economic situation in Australia and making a forecast for the rates of cash of the Central Banks, keeping in mind the drop in the prices of the oil in the global market. Fiscal Restraint With the cost of oil falling in the global market, global financial conditions have been very conducive and the rates of borrowing for a couple of major sovereign major reaching a considerable low. Further, the financial costs for creditworthy...
8 Pages(2000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Current Economic Situation for FREE!

Contact Us