Download file to see previous pages...
The government has pumped money into the economy to boost spending which in turn boosts the aggregate demand by increases it. This move aimed at providing citizens with more money to spend. It has also increased its spending to hike confidence about growth. The rescue of insurers and banks also helped to build confidence to public and businesses in the economy (Moore, 2014). On monetary front, FOMC has undertaken buying government securities in an attempt to reduce interest rates and encourage investing. This increases the level of yield and betters confidence level. The government has tried its best to resurrect the U.S economy from the effects of 2008 crisis (Moore, 2014).
According to Bureau of Economic Analysis, the GDP increased at an annual rate of 2.6% by fourth quarter of 2013 and in third quarter, it had increased by 4.1% (Pew Research, 2013). Real disposable personal income grew by 0.3 percent in February 2014 with a similar percentage increase recorded in January. As of September 2013, U.S GDP was $15.7trillion-2.2 growth in 2012; Unemployment was at 7.2%, Inflation at 2.1%, and public debt at 106% of GDP (Pew Research, 2014). The GDP has increased overtime as the employment and inflation rates have declined. Unemployment has come down slowly but steadily but creation of more than 300,000 jobs per month is what is required to bring it down with the desired speed (Pew Research, 2014).
To ensure a steady growth in U.S economy, political leaders need to ensure that there is no interruption in nominal functioning of government (Moore, 2014). Changes are needed in budgetary procedures to curb such disruptions as government shutdown by abolition of nominal debt ceiling, to allow automatic authorization of resolutions passed by congress and borrowing implied by budgets. To give economic confidence a chance of entering positive territory, positive economic trends must continue. Government should increase money circulation in the
...Download file to see next pagesRead More
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).
It has been found that the economy of the United States has rescued itself from the recession and has begun to rise since the second half of the year 2009. It was expected that the economy of the United States in the year 2010 would grow by 2.9 percent and in the year 2011 it would decline to 2.5 percent.
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.
However, he tends to preach more about the meat and actually goes to actualize the meat diet just as Atkins diet recommends Westman, C et al. (2010). I support the Atkins meat diet I must admit that I do not know how it works. For example, I fear that the Atkins diet only recommends taking meat but does not convince one on the reasons for the preference.
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,
The unemployment aspect of the US economy is actually a little dire.
The unemployed population is quitting the hunt for jobs. Moreover there is a widespread agreement on the notion that, even if the economy gets on a
2 Pages(500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Current Macroeconomic Situation in the US for FREE!