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The world always closely observes the political and economical spheres of the US. Undoubtedly, the waves in the US economy are reflected throughout the world economy. But the global recession which marked its beginning in December 2007 was a huge setback to their undisputed leadership in the world economy.
US economy was deplorably affected by the global recession of 2008. The subprime mortgage crisis was the sole cause of this recession. A huge fall in housing related assets resulted in a global financial crisis. Oil and food prices went up like anything. This eventually went to the collapse of a number of financial enterprises like Lehman Brothers, Bear Stearns, Freddie Mac, Fannie Mae and AIG etc. Automobile industry was also badly struck. It was a period of scrambled economic activity and negative expansion in GDP.
The aftermaths of the late 2000s recession brought about overwhelming downfall in almost all phases of the economy. Contraction of GDP began in the third quarter of 2008 and was contracting rapidly by early 2009. Capital investment declined to the lowest rate in 50 years. As a result, the US had to face political instability as well.
Decline in consumer credit, real estate bubbles, personal bankruptcies etc put the US economy into turmoil during this period. The GDP decline was about 5.1%. The US government announced a $700 billion bank bailout and $787 billion fiscal stimulus package to tackle the situation. The US was also struck by the draining of capital investment to developing countries like India and China which were not deeply affected by this recession. Government measures could not yield many results initially, but the economy started to regain its stability gradually, though in a slow pace. A poll by Reuters says that more than 50% of the Americans think that US is still in recession (Reuters polls). But according to official data of Bureau of Labour Statistics, a modest recovery is taking
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Twenty two million American citizens who would love to work permanently cannot get employment. Nearly half of those who are jobless have been without a job on long term basis. Earnings are declining the real earnings of a usual American citizen is now lower than the level it was back in 1997.
How do the GDP growth rates compare to the long-run trend for the US economy? According to the numbers what phase of the business cycle is the US economy currently in? Do you observe any important changes in the individual components of GDP? The expenditure approach entails four components which are aggregated to get the overall GDP.
According to the paper, during President Johnson's time, the US engaged in military involvement with countries to thwart a communist takeover. Before the Nixon took presidential office the US was already at war in Vietnam. In Vietnam War, American troops were directly involved and that gesture of the US became a great morale booster for Vietnamese.
In this way the fiscal policy is directly responsible for the level of prices and nationwide employment.
The government manipulates fiscal expenditures and tax rates to stabilize the economy. When there is a lull in economic activity in the nation government will respond by increasing funding of unemployment benefits and tax cuts will automatically follow.
In its peak of popularity, Fordism proliferated across the globe and helped spur the economies of various countries in Europe and Asia. In the early 90's, however, Fordism had faced decline which marked the end of its period of domination- an era attributed to the metamorphosis of labor, production, capital and consumer culture.
ce, U.S businesses, unlike their more rigidly bound counterparts in Europe and Japan, have more room to adjust when taking decisions on crucial matters like capital plant expansions, research and development outlay and additions or reductions to the labor force (Cia.gov).
just 0.9%, down from the 10-year average of 2.8% (St Labs, p1).” According to the United States Department of Labor, The Unemployment rate as of September 2009 was 9.8%, which is the result of a progressive growth 8.9% in April 2009.
University of Maryland economist Peter
Gross domestic product, GDP fell significantly in the first quarter of the year 2014. The records showed that the fall was the fastest rate ever recorded in the U.S. since the end of World War II.
Rise in prices of housing markets to an average of 7% per
immigrants benefit from immigration, there is no evidence that indicates that a substantial increase in the per capita income of Native Americans is as a result of the immigration. The second issue is that, there is an evidence of fiscal impact (Hansen, 31). This involves the
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
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