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As a result there are lesser incentives for the manufacturers to increase the production and so reduced industrial production is anticipated. The consumer spending, on the other hand, has increased rapidly (especially for food items), despite the fact that the household incomes had been reduced in the last quarter of 2009. Meanwhile, the inventories for the consumer goods and business supplies have reduced considerably in contrast to the inventories of different materials and equipment. Further, the inflation rate was anticipated to increase recently because of the increase in the oil prices. However, the personal consumption expenditures (PCE) inflation has remained more or less the same as the previous year. (FRB, 2010) The overall GDP has risen 14204 billion dollars after an increase of 5.6% in the last quarter of 2009. At this rate of economic expansion the economy can easily recover within a few months. But that is not quite likely.
Despite the fact that the economy has improved considerably since the last quarter of 2009, it is still important to consider the fact that the US economy has grown only 0.1% over the last one year. (Fedec, 2010) Since the percentage by which the output worsened in 2008 was 1.9%, a lot of economic growth is needed to cover up for the loss. Also it is pertinent that the government gives importance to the strong expansion of the economy. Out of the 5.6% of the increase in the GDP over the last few months, 3.9% has been due to the rebuilding of inventories. (Fedec, 2010) Once the inventories are created the production is likely to fall. As a result the overall output production may fall.
Although the labor market has improved considerably, the unemployment rate still is the highest that has been recorded in the last 26 years. (Fedec, 2010) If nothing is done by the government in this regard the situation can worsen. 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).
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 macroeconomic situation in the United States of America could be described as ailing and this is due to the fact that the economy of the country is just recovering from an economic recession. The global economic meltdown that hit the world did not leave out the United States of America as the macroeconomic situation in the country is such that the government is trying to recover from the economic recession and inflation that has hit the country (Jones, 2008).
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.
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
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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