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This is a position for an economics case - Research Paper Example

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The prices of goods have increased with time and people cannot survive on one job, but has to take part time jobs to remedy the high cost of living. The consumer price index has increased compared to…
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This is a position paper for an economics case
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This is a position for an economics case

Download file to see previous pages... This paper discusses the trend and status of prices and the standard of living in the U.S.
The current situation in the economy is the weakest though the economic fundamental might show the economy is doing fine. Even when the rate of unemployment is as it lowest, and the free market uninterrupted by economic crisis there is more to be done on the prices of goods. People may be in employment, but still life in poverty because the cost of living is high. The economy of the United States has increased since the inception of the industrial revolution with the exception of instances of economic crisis in 19 30 and other financial crisis including the 2007 -2008 financial turmoil.
During the recession, the economy output of the country decreases and people lose job, as a result. In case where people keep their job they do so with pay cut to ensure that the industry survives the crisis. This demonstrates the worst of the effect of prices in the economy. However, during the boom it is only a few who benefits and the rest of the people condition remain unchanged. Moreover, the government had resulted to borrowing to maintain a high standard of living. This, however, has a negative effect on prices and inflation. The country right now is dealing with the problem of debt, and it had reached the maximum amount that was set earlier by the congress. Therefore, failure to pass a debt ceiling bill that increases the level at which the government can borrow leave the government operation vulnerable and a possibility of defaulting past engagements. The challenges of unstable prices are borne by consumers because they are trapped within their wages.
The United State Bureau of Census and concern from the labour sector has been raising concerns of the living standard in the next decades. The Bureau of Census has projections of the country’s economic capability to maintain a healthy ...Download file to see next pagesRead More
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