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dy track, it won’t be until a couple of years later that the economy will be moving towards growth such that it would create jobs and resolve the ever increasing unemployment (Perlo, 2012).
The recovery is expected but after two years, and this recovery will continue for a long period of time and even reinforce it eventually (Perlo, 2012). A critical view point to this whole situation is that the profits have been restored at the expense of social benefits and salaries, but it will eventually have an impact on investments resulting in an increase. When looking at the real estate, there has been no new housing construction. But when the up surging demand from family household is considered there is a good chance that there will be a boom in the real estate market in the near future.
One should always be kept in mind when analyzing the current situation of the US that this is the recovery session after the financial crisis, so circumstances are definitely abnormal. As mentioned earlier, job creation is of paramount importance. According to an estimate, over 300,000 new jobs need to be created every month if a significant change is to be observed in the near future.
The FOMC or the Federal Open Market Committee met in August 2012. The statement given in the form of press release suggests that “economic activity has continued to expand at a moderate pace in recent months” (federalresesrve.gov), quite an objective statement but it definitely tells why the word ‘moderately’ has been used here. The economic activity is not that helpful, the other factors have played a part in better results of the recent quarter. However, the economic activity is also not going wayward.
Certain easy money policy tools have backfired for economy. For instance the total income factor (wage rates) has been declining because of the tools that have been used to handle the finances (Mauldin, 2012).
After the financial crunch of 2008, the falling prices of homes have troubled the
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Stated otherwise, at this moment, US economy as a whole is strong. Tilton (2011) cited two main factors as the basis of this prediction. The first reason is the stronger private sector balance sheets in America. To note, before the financial crisis, America’s private sector was spending beyond what it can only spend (Tilton, 2011).
The state of the domestic economy has always been topmost in the minds of American citizens. It will perhaps be one of the most defining issues that will determine the winner of next year's presidential elections as well. People are understandably worried about the economy as it impact on them directly, perhaps more significantly than other concerns such as a global anti-terror war.
Presently in the US, there is slow growth and escalating unemployment; the main sources of apprehension. However, the FED will maintain the funding rate pending 2014, which is a giant push. It forecasted that the economy will develop more than 2% the following year, which is good news.
This essay mainly focuses on the assessment of the current macroeconomic developments in the United States. The issues arising from selected policy prescriptions are discussed with reference to government expenditure for maintaining social security system in US. Alternative policy solutions to current crisis are also presented in the paper.
In September unemployment rate remained unchanged at 9.6 percent (Bureau of Labour Statistics, 2010). The expansion figures and unchanged unemployment rate gives an optimistic view about US current macroeconomic situation. On the other hand,
This paper primarily focuses on the identification of the main reasons behind economic recession. It also tries to suggest effective sets of policies, that should be put into place by the governing bodies to address economic challenges. Among the factors leading to the crisis were low interest rates, increased supply of money and high cost of oil.
And when asked about the effect of government efforts to handle the situation, majority believe the economic policies have just benefited corporations, the rich, and large banks than small businesses, the poor
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