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.
Nobody downloaded yet

Four Major Problems Faced by the US Economy Currently Based on Current Media Reports - Term Paper Example

Comments (0)
Summary
The economy of United States of America was performing very well at the start of the century but then went under deep recession in the year 2008 with the credit crunch and all the financial institutions seem to crumble at the same time. …
Download full paper
GRAB THE BEST PAPER
Four Major Problems Faced by the US Economy Currently Based on Current Media Reports
Read TextPreview

Extract of sample
Four Major Problems Faced by the US Economy Currently Based on Current Media Reports

Download file to see previous pages... The 2008 financial crisis of United States affected the economies throughout the world and the macroeconomic factors were shaken up. The issue started with the debt crisis when the borrowers were unable to service their loans and thus faced difficulty in paying back the loans. This resulted in the housing market crisis when people ended up with bad loans which in turn resulted in people being deprived off their homes. The credit crunch also led to damage to investors confidence and investors and savers were unwilling to inject the money into the economy which resulted in shortage of money and cash, and this also resulted in the rise of unemployment. US Federal Debt/Deficit Since the financial crisis struck in the year 2008, the US debt has been very high. According to a recent news article, the United States debt is nearly as much as the total value of all its goods and services produced in the US during the financial year. CNBC reports that the total value of the US debt is $14.96 trillion which means that the United States external debt as a percentage of its GDP stand at 99.46% (CNBC). This is a very high figure and indeed a very dangerous one because high leverage of debt can be very risky. As a matter of fact, it is suggested that every person born in the United States has a debt of $47,664 in the very second it is born. The figure on the left shows that the public debt in the US will surpass the 17 trillion mark by the end of 2012, and indicates how the debts are constantly on the rise, which can be a very alarming situation for the people. (US Government Spending) Not just the rising debts, but the economy also faces the difficulty of constant budget deficits which means the outlay of the United States government is greater than the receipts and this means that the US government has to search for sources to raise the finances. Since the past three years, the US federal deficit has been around the $1300 billion mark. (US Government Spending) Issue of Raising Finance As mentioned above, United States economy has become highly leveraged and the debt to GDP percentage is nearly touching the 100 percent mark. This increases the riskiness of the economy and damages the confidence of investors and savers to inject their money into the economy. Investors ask for high returns to take on risky projects and some do not even settle for higher returns due to the fact the people are naturally risk averse. A credit rating agency has downgraded the credit rating of the United States and has gone down from AA+ to AA. Since the credit rating is going down, the investors and savers are reluctant to inject their money into the economy (Yahoo!). This creates a problem for the United States because the US government needs to borrow the money to cover up for the budget deficits they are facing each year. When the government has to inject money into the economy and it is unable to increase its budget receipts, then it has to look for other sources of money to cover that deficit and this source is usually to borrow money. With the credit rating going down, less number of savers is ready to save their money and thus it creates a shortage of money for the US government. Not just to finance the budget deficit, the government also faces difficulty in raising the money to service or repay their previous loans. Housing The housing bubble emerged in the United States in the year 2005 when the property prices started to rise and they rose at quite high rates. This increased the ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Unemployment in US economy
Moreover, unemployment comes into being if an individual goes in search of a new employment after being out of labor force for a long time. The individuals in search of employment get employed in monthly duration in a range of 10% to 40%. The unemployment varies directly with separation rate and varies indirectly with the rate of searching for a job.
3 Pages(750 words)Term Paper
Impact of NAFTA on the US economy
Since its inception in 1994, the agreement has been appreciated for the benefits U.S. economy reaped through it and criticized for the negative impacts it might have had on U.S. economy. This paper discusses some of the negative and positive impacts of NAFTA on U.S.
4 Pages(1000 words)Term Paper
Problems Faced by a Fictional Organization in which the Solutions are Presented by Knowledge of the Core Learning Outcomes
Managers are responsible for both the performance the company and its employees. The employees visualize the manager as a role symbol of success. The employees view the manager as the boss of the company. Managers get paid lots of money for their professional services, but also their work is very stressful and most managers work over 50 hours a week without added compensation for the extra hours above the normal 40 hour week.
6 Pages(1500 words)Term Paper
The detrimental impact that the 911 Terrorist Attack had on the NYC/US Economy
Due to such detrimental attack of terrorism which occurred on 9/11 in the World Trade Center in US, the impacts of terrorism have received increasing attention for review of the literature on the impacts of terrorism. The activities of terrorism being aimed at the destruction of the cities and derailing the livelihood of the people of the country affect the economic activities by damaging its fundamentals and deep roots in the national structure.
24 Pages(6000 words)Term Paper
Application Security Term Paper - Social Media and Security issues: Problems, challenges and solutions
An idea is available by (Facinelli, 2009) which states it as “user-generated content or consumer-generated media”. A question comes to mind, what is social networking meant for? Its purpose is to enable people for creating a virtual social network to exchange ideas and thoughts with class mates, old friends, lost friends, relatives, and new friends.
4 Pages(1000 words)Term Paper
The current level of government regulation of business is detrimental to our economy
In medieval times, people from the different countries went out in ships to trade with the other countries. After that stronger countries began to conquer the other countries in search of the resources, in order to aid their economic development. Trading companies became the norm during this time.
15 Pages(3750 words)Term Paper
Four Major Themes of Anatomy
Refers to certain parts of the human body being able to perform the same kind of movement or work over and over again. This is true for example for the neurons in the nervous system which keep on transferring information
1 Pages(250 words)Term Paper
Current Macroeconomic Topic in US
It is the belief of countless people that the legalization of certain drugs can have more benefits as compared to the criminalization of its sale and use (Husak and Marneffe 172). Marijuana is just an
4 Pages(1000 words)Term Paper
N analysis of any assigned primary source document from the book Major Problems in American History Volume II
This particular poet was a white Southerner who had much to suspect about the Reconstruction and life after the Civil war. The author is Major James Randolph; a white Southerner, who is singing the piece after
5 Pages(1250 words)Term Paper
State of current US Economy
of the United States in the first quarter of 2014 was 4.6%.1 This growth is a clear indication that the economy is building gradually more so after the dismal performance in the first quarter that stood at 2.1%. This dramatic rise in the growth is more than twice the economic
4 Pages(1000 words)Term Paper
Let us find you another Term Paper on topic Four Major Problems Faced by the US Economy Currently Based on Current Media Reports for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us