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Article Analysis Report (Macroeconomics) - Essay Example

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This article analysis example will intend to address the current economic challenges of the US economy along with emphasize upon the consequent future economic issues taking into account the article written by Simon Denham and titled as “Fiscal challenges ahead for the US economy”…
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Article Analysis Report (Macroeconomics)
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Article Analysis Report (Macroeconomics)

Download file to see previous pages... The world economic situation is apparently under deep scrutiny owing to its frequent fluctuations and rapid alterations which has left multiple countries, irrespective of their global presence as a developing or a developed economy, unstable. It is in this context that fluctuations in the global economic environment also lead to fluctuations in the national contexts of various economies including the US, one of the leading and large economies. Owing to the current economic conditions of the US, Denham (2012) pointed that a larger proportion of funds have been allocated to the public sector of the economy which has left private sector with average funds that might prove insufficient in the future due to international competitions and altering demographic features. Denham (2012) also noted that as the economy intends to massively increase its tax rates, US is likely to witness the challenge of ‘fiscal cliff’ in the near future. In the international context, EU being a large contributor to the global Gross Domestic Product (GDP) and therefore operate partially as a world economic power house, may also impose an inevitable impact upon the economic stability of the US owing to the currently witnessed Euro Zone debt crisis. Additionally, poor oil market and export-import industrial performances, US is also quite likely to face the issue of fiscal deficit in the preceding years (Denham, 2012). In the words of Denham (201), “it seems the fiscal cliff saga is the main focus topic and the rest has little influence”. However, as stated by Denham (2012), ‘fiscal cliff’ is not the only economic challenge that attracts attention with concern to the US economic stability from the global sphere. Furthermore, as stated by Moore (2012), such measures can again lead to a double-dip crisis situation. Indeed, the issues noted by Denham (2012) are noteworthy to ensure economic stability in the US from a future perspective. Nevertheless, agreeing with the issues noted by Denham (2012), Newman (2012) stated that apart from the alleged ‘ ...Download file to see next pagesRead More
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