American economy today - Essay Example

American economy today Grade (29th, Oct. American economy today The of the American economy is not pleasing. Though some economic growth has been recorded of late, a poorly performing economy remains the reality. Some major improvements have been noted in the recent months, with the state of unemployment in America reducing to 7.8% from an initial standing of 8.1% by September 2012 (Rugaber, 2012). According to the USA bureau of labor, there were major changes in employment in the transport, warehousing and health sectors, which significantly reduced the rate of the unemployment (Rugaber, 2012).

Thus, the number of the unemployed people in the US, which initially stood at 12.1 million, was decreased by around 0.5 million in September, leaving the unemployed people totaling to 11.6 million (Rugaber, 2012). Additionally, there was an overall economic growth of 0.7%, raising the annual economic growth rate to 2% from an initial 1.3%, during the quarter of April-June 2012 (Rugaber, 2012). The state of deficit and debt is not promising, since the US deficits and debt is growing at a higher rate than the GDP.

This has the impact of requiring a substantial amount of revenue to be used in covering the interests payable to these debts (Rugaber, 2012). The inflation rate has been on the decline, standing at 2% from the historical average of 3.3% by September 2012 (Rugaber, 2012). The prices of commodities have been increasing constantly but at a lower margin of 0.6 by September of this year. Foreign trade has constantly decreased, marked by a reduction in US exports, while competition for foreign trade has significantly grown, notably from the Asian giants (Rugaber, 2012).

The wages and income distribution has continuously recorded a great deal of inequality, with the gap between the highest and the lowest earners significantly increasing (Rugaber, 2012). ReferenceRugaber, C. S. (2012). U.S. Economy at a Glance: Perspective from the BEA Accounts. Bureau of Economic Analysis.