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The Economic Report of the President Summary The Economic Report of the President of the United States is written by the Chairman of the Council of Economic Advisers and is published in February every year since 1947…
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Download file to see previous pages... The theme of the current year’ Economic Report of the President can be described by the headline of the first chapter of the report; “To Recover, Rebalance, and Rebuild”. The Nation has made significant efforts for the recovery from the Great Recession that took shape towards the end of 2007 and prevailed until the middle of 2009. The economy has grown for 10 straight quarters, as a result of which the Gross Domestic Product (GDP) of the country in real terms has exceeded its peal level that was achieved before the 2007-09 recession had started. The real GDP has increased 6.2 percent since 2009 (Economic Report of The President 2012, p. 42). However, the extended effects of the severity of the crisis have slowed down the pace of recovery. Job growth has been sluggish; from February 2010 till January 2012 a net total of 3.7 million jobs were added by the private sector employers (Economic Report of The President 2012, p. 27). This can be contrasted with the period of recovery from the 1991 recession (between November 1991 till October 1993) 3 million jobs had been added (Economic Report of The President 2012, p.27). In the mid 2009, President Obama and his Administrative body took steps to rebalance the sources economic growth. The inclination of business investment has shifted real estate to sectors like software industry, expansion of which leads to expansion of capacity and productivity. A vital down payment for the future is made by investments in education, infrastructure, clean energy and research and development. The President has emphasized upon the identification of common grounds, such that government policies can act along with the private players without impeding economic growth. The gains of economic growth are intended to provide opportunity to the middle class and the ones struggling to get into the middle class. Credit conditions have improved over the years and real consumer spending has averaged to 1.9 percent in the last two quarters of 2011 compared to 1.4 percent in the first half (Economic Report of The President 2012, p. 46). Nominal tax receipt by the State and the local governments has increased by approximately 4 percent (Economic Report of The President 2012, p. 59). While sales and property taxes rose, corporate taxes were down. Real exports rose by 5.2 percent during 2011 while real imports grew 3.8 percent (Economic Report of The President 2012, p. 60). The efficiency of the safety net programs has been emphasized upon in the report. Policy developments on the key components of the safety net are mentioned. 9.6 percent households received Unemployment Insurance in 2010 (Economic Report of The President 2012, p. 202). State would experiment with a program named ‘Bridge to Work’ in which people facing frictional unemployment while changing jobs would be taken by private employers and compensated for up to 38 hours of work per week for a period of eight weeks. The President’s Budget includes the goal of securing a job to every American who wants a job. It has been recognized that smart regulation like the benefit-cost analysis, public investment, and promotion of clean domestic energy would lay the groundwork for technological advancement and raising productivity. Comments The US economy was stuck deep in financial crisis when President Barrack took oath of office on January 20, 2009. The economy contracted at an alarming rate of 8.9 ...Download file to see next pagesRead More
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