Economic Situation in the US in the Period of the Different Presidents - Assignment Example

Economic Report Ronald Reagan (1981-1989) The real GDP during this period saw a robust growth despite some slowdown during the two initial years of the tenure. After inheriting a gross domestic product of 3422.2 in 1981, the Reagan administration saw a sharp decline in the GDP owing to a number of reasons. The huge expenditure incurred during the election campaigns could be one of the reasons for such a decline. Events around the world certainly affect the domestic polity and domestic growth figures too. But the country’s economy seemed to have picked up hereafter. With consistent rise from 1983 the GDP figure was at 6981.4 by 1989. Percent Change in real GDP: As is evident from the description of the GDP figures, the percentage changes in real GDP during the period happened to be in proportion. In 1982 the negative growth of GDP indicates towards some serious issues in the domestic economic environment. But thereafter, the growth percentage has been consistent and positive. Year 1984 saw the maximum increase in percentage terms. Civilian Unemployment Rate: The year 1982 is once again seen as the problematic year for the country with the overall unemployment rate rising to 9.7 percent, the highest during the tenure. The gradual decline of the unemployment rate in later years during the tenure points towards the people friendly policies taken up by the government of Ronald Reagan. Civilian Unemployment Rate by Demographic Characteristics: Dividing the unemployment rate demographically, we find that that the Black population seems to be the worst affected. The situation is particularly severe in the age groups of young black community (16-19 yrs). Though it improves somewhat after that, but still things remain worrying for community. Consumer Price Index: The CPI did not see major shakeup during the tenure of President Ronald Reagan. The index saw a consistent rise from 1981 to 1989. The index seems to have spread well over different items, with goods and services forming the major component flaring up the consumer price index. Starting with the overall consumer price index of 90.6 in 1981, the country saw the index rising to 124 by the year 1989. Changes in Consumer Price Indexes for commodities and services: During the entire tenure of President Reagan, except the year 1986, the CPI rates of growth were very high. During this year the energy consumption seems to be one of the lowest actually, with negative growth of 19.7. George H.W. Bush (1989-1993): The tenure of Bush senior too remained quite eventful in the sense that the world saw major changes during this tenure. On the one hand the cold war ended when the communist empire of USSR broke into CIS states. On the other hand the European region too saw some bonhomie with unification of East and West Germany. The Real GDP: The nation’s income and prosperity saw some decent advancement during the tenure despite not so encouraging signals from some quarters like private inventories. Inheriting a GDP of 6981.4 from President Reagan, The Senior Bush passed on a healthy 7532.7 to President Clinton. Services sector formed the major component of the GDP during all these years. That’s an indication towards the changing world and how globalization is affecting the nature and composition of industries in the country. Percent Change in Real GDP: The year 1991 was the worst in terms of the incremental changes in the GDP. Almost all segments saw a negative growth. Similar trend was seen in some of the segments in the last year of President Bush’s tenure. Civilian Unemployment Rate: The rate of unemployment in the 16-19 years category was the highest overall. But that could be understandable because this group might not be too keen to take up regular jobs. During the teen years the youth often prefer to have some part time jobs and hang out with friends. But the year 1992 happened to be the difficult year in terms of the rise of the unemployment rate to 7.5 percent from 6.8 percent the previous year. Nonetheless situation was controlled the next year. Civilian Unemployment Rate by Demographic Characteristics: Demographic characteristics have played quite crucial roles in the US politics and economy. The high rates of unemployment to the extent of hovering around 40 percent amongst the black female community is something that should have been given attention by the government, and reasons could have been ascertained as to why this community has been coming out with such scary figures. Consumer Price Index: The Consumer price index rose sharply with a rise in housing and transportation price indices. From 124 in 1989 it rose to 144.5 in 1993 to make things somewhat harder to the citizens because the GDP did not see a matching rise during this period. Changes in Consumer Price Indexes for commodities and services: While during the early years of President Bush senior there was a sharp rise the price index, the Bush administration seems to have brought things under control during the latter half of the tenure. The rise in price indices was not as sharp as during the early years. The sharp rise during the early years might be attributed to the rise in oil prices owing to the disturbances in the gulf region. Bill Clinton (1993-2001): This was in fact one more eventful term in the history of the United States of America. With US strategic strikes in Iraq and Afghanistan things were bound to change at home as well. The transition into the 21st century was quite eventful and with mixed results during the tenure. Real Gross Domestic Product: During the tenure almost all segments saw a reasonable upswing in GDP, expect in the change in private inventories at the end of the tenure. From 7532.7 in 1993 to 9890.7 in the year 2001 the nation seems to have worked up its resources to its advantages. Percent Changes in Real GDP: Though the average increase in the GDP during the tenure remained more than 3 percent, the year 2001 did not seem to have found many positive triggers for the economy. The GDP almost remained stagnant in the last two years mainly due to the negative sentiments in the gross private domestic investments. Civilian Unemployment Rate: The Clinton administration seems to have put in the right policies in the right place during its tenure. The youth community got maximum number of opportunities during the period, with overall civilian unemployment rate falling from 6.9 percent in 1993 to 4.7 percent in 2001. Civilian Unemployment Rate By Demographic Characteristic: It is indeed worth mentioning here that, as compared to some of the previous governments, the Clinton administration was able to exercise good control in managing the unemployment rate even amongst the segments like black community. For example amongst the female segment of the black community the unemployment rate decreased from 12.1 percent in 1993 to 8 percent in the year 2001. Similar improvement in figures was apparent in almost all segments comprising the overall index. Consumer Price Indexes for Major Expenditure Classes: It seems as the overall earning ability of different segments rose, the economy too seems to have widened its scope and the CPI saw an increase from 144.5 in 1993 to 177.1 in the year 2001. Table B-60 indicates that the rise was almost across the board amongst all the components making the index. Changes in CPI for Commodities and Services: It could indeed be considered another feather in the cap of Clinton administration that it was able to have a control on the CPI and the rise was almost uniform during all these years. From an increase of 2.7 percent in the year 1993, the increase was tucked at 1.6 percent in the year 2001, with negative growth registered by the energy and commodities sector. George W. Bush (2001-09): This was indeed quite an eventful term at the White House. Terror attacks are certainly not new to the world community, yet the manner in which these elements wrecked havoc in the heart of the United States, the political equations seems to have undergone a transformation. Iraq and Afghanistan were targeted as the key centers of such activities and campaigns were launched. It was indeed a huge drain on nation’s economy, and the economic indicators are bound to find some reflection of this. Real Gross Domestic Product: The GDP figures of the country witnessed healthy increase during the twin terms of five year duration of President Bush. With the GDP figures at 9890.7 in 2001, the GDP stood at 11712.3 during the last year of the double tenure with growth figures in almost all segments comprising the index. There seem to some loosening at the end of the tenure, but that appears more because of the ongoing recessionary trends in the economy. Percent Changes in Real GDP: The changes in GDP figures reflected diversified trends during the entire term, which appears in line with the radical changes on the geopolitical horizon. While in 2001 the change was just about 0.8 percent, in the first quarter of 2006 the increase was 4.8 percent. Civilian Unemployment Rate: It seems, the government of Bush Junior was able to have a control on the unemployment figures to some extent. While the unemployment rate was 6 percent in 2003, it was 5 percent by the end of year 2007. But things might not be same as we enter the years ahead. With recession leading to a number of job losses, the unemployment rate is bound to rise in times to come. Civilian Unemployment Rate by Demographic Characteristic: The trend started by Clinton administration seems to have been followed by the Bush administration as well, with control on the unemployment rate across the board, in almost all segments of the society. The rates of unemployment amongst demographic segments seem to have hovered around similar levels for many years. For example, in the male segment while it was 4.1 in the year 2001, it was just about 4.5 percent by the end of the year 2007. The latter half of 2008 of course led to sharp increase in these figures, owing to the recession. Consumer Price Indexes for Major Expenditure Classes: The CPI saw a steady increase throughout the term of President Bush with 177.1 in 2001, it rose to 216.6 by the end of year 2008. Rising costs of energy, medical care and housing formed the major components of the increase in this index. Changes in CPI for Commodities and Services: The changes in the index reflected the general sentiments in the economy of the nation. While in 2001 the change was just about 1.6 percent, it was more than 4 percent in the year 2007. With many things happening in the gulf region the sectors like energy and commodities reflected negative increments, but the overall rise in the prices did not help such positivity. Read More