Economics of the President 2013 - Case Study Example

Economic Report of the President Economic Report of the President This Presidential Economic Report describes the progress made after coming from one of the worst economic crisis. As a nation, Americans can now afford to buy cars more than they have in 5 years, and relay on less foreign oil than it has for over 20 years. Housing market is recovering, and consumers, patients and homeowners are now enjoying stronger protections than ever before. But still there are millions of Americans whose hard work and dedication is yet to be rewarded. Even though the economy is adding jobs, a large number of US citizens are not finding full-time employment. While corporate profits soar, wages and incomes for working Americans are still the same. This economic report deals with the main priority which is to do everything possible so as to grow the economy, one that will also benefit the middle-class with jobs since they are the largest group. Economic growth is very critical in any economy, and any government does its best to ensure that the areas under its jurisdiction experience economic growth. When the economy grows, other things come automatically. These include employment opportunities and increase in disposable income. To ensure that an economy of any country grows, those concerned with stimulating economic growth concentrate with first increasing the per capita Gross Domestic Product, which is actually used to measure economic growth of any economy. In fact, the standard or components that constitute the measuring of the GDP are actually the same for all economies, both big and small economies. This can be done by increasing the competitiveness of tax codes, through ending tax breaks of outsourcing companies and rewarding companies that create jobs for Americans. There is need to invest in research and technology which allow Americans to harness more locally available energy, thus putting more people back to work in repairing the dilapidating roads and bridges. Therefore, provision to Americans with the knowledge they require in order to fill those jobs should be the first priority starting from the earliest years, by offering our children with high-quality pre-school, because it is well known that children in programs like these perform better throughout their academic lives. The high schools should be redesigned to better prepare students with skills that employers are currently looking for. Since taxpayers are not at a position to subsidize the higher education cost, affordability will be taken into account and so will value. Hard work will be rewarded and no one working full-time will be subjected to poverty. This will be achieved by raising the minimum wage. The skills and talents of hardworking immigrants will be utilized by reforms in order to keep on strengthening security at the borders and making employees more responsible, which would in return increase investor confidence, attracting good entrepreneurs, for example, in fields like engineering and science, thus creating more jobs. Immigrants in any country usually play a vital role because they help in increasing labor into that economy. For example, in the US, the number of immigrants is so high to an extent that if they withdraw their services or labor, the economy can be greatly affected. The good thing with the US government is the fact that it gives immigrants equal opportunities as those of the natives, and this makes them feel at home hence produce maximal. To stimulate or increase production, the US government should ensure that all the immigrants receive the necessary skills, so as to make them more and more productive to the US economy. Any economic growth is usually facilitated by effective and massive production and since labor is one of the factors of production, the government should work so hard to tap enough and skilled labor into its economy. As America continues to grow economically, further actions should be taken so as to reduce deficits. Over the last few years, Americans have cooperated and managed to bring down or decrease the budget deficit, thus being halfway towards the goal of $4 trillion in deficit reduction estimated by economists to be the margin needed to stabilize US finances. This year’s Economic Report of the President has also highlighted the policies that the Obama Administration is advancing in addressing the fundamental imbalances and threats which have built up for decades, creating extreme stress on the middle class. The US economy is currently in a stronger position and heading in a much better direction since Obama took office. However, there is more work to be done. The goal of the President’s economic agenda is to strengthen the foundations of growth, therefore ensuring fairness for the middle class, and making the economy more resilient to future challenges. America has been able to build the most prosperous economy on Earth as a result of recognizing that individual success was inextricably linked to the success as a nation. There are many sets of examples of the synergies cutting across the various aspects of the President’s economic agenda which are present in this good report. President Obama’s first term economic recovery comprises of synergies which are underlying the economic recovery that began and which are capable of driving the Administration’s work in his second term to keep on moving the economy forward. So far, the financial conditions are continuing to be more supportive; evident by senior loan officer’s report which states that banks are now more willing to lend small and large businesses loans. In the report, the tax relief act reflects the approach endorsed by the President for the reduction of the Federal budget deficit. This approach establishes a balance which is responsible for the reductions in government spending with new revenues and increased tax codes progressivity. This law has extended the expansions of numerous tax credits which were enacted in the Recovery Act which has a provision of tax reduction related opportunities with college expense assistance for the low income earners. Due to the slowing population growth and aging of the workforce, there is a demand for more workers in America. The country needs to concentrate on training its young people so that they will be better placed and well equipped to fill the future jobs. President Obama has concentrated on combating education cost especially at college level. With the expansion of the Federal Pell Grant Program together with the American opportunity tax credit, college education has been made more affordable for millions of students and families. However, there are challenges which still remain, and they include the continuing rise of tuition fee and levels of students in debt. The President requested learning institutions to help in reducing education costs during his latest State of the Union address. The most advisable policy to adopt is the leveraging of America’s unique advantage for future growth and prosperity. The smart policy also involves ensuring that all Americans benefit from economic growth. President Obama also reiterated his commitment that an honest day’s work will be rewarded with decent pay during his 2013 State of the Union address. This pay will be enough to feel secure and support a family. This is a Federal minimum wage capable of keeping up with the current trend in the cost of living, and there are also policies which strengthen workers’ ability to bargain for decent earnings and good working conditions, and tax policies such as refundable credits which create room for lower-income families to invest in their children’s education. These are key factors of the foundation which is the basis of an economy working for the interests of the middle class. Apart from the “skills” challenge, the US, which is the same case with other advanced economies, is also faced with challenges which involve demographic. Rising longevity and lower birth rates have reduced population growth and increased the average age of the population. To demonstrate this, the population of the US, mostly the aging group, has contributed to a decade long decline in geographic mobility because many baby boomers have reached retirement age. Conclusion The US economy has changed in important ways in a short period of time during Obama’s administration. Since the end of the recession, home ownership has increased and poverty has decreased. Based on the recent trend set by the Obama administration, the US economy is headed for the best. This is not only short-term, but it is proving to be a long term aspect to the global economic events. There is reduction on over reliance on oil especially foreignoil, green technologies and alternative sources of energy. For example, home ownership rate has significantly set new highs after several decades of decline. Home prices are stabilizing while foreclosure rates drop, which was unthinkable before Obama took over. Similarly, the proportion of people driving alone to work has increased fairly steadily for several decades. The slight drop during the recession was a short-term adaptation to high gas prices and lower incomes, which has now been dealt with by the Obama administration. So far, this trend which has been established by the current administration is expected to continue. Generally, the Obama Administration has been doing well is expected to continue doing well in the second term. Read More