Economists are at different ends on the current speech of Pres. Barack Obama and him boasting of the figures in employment for May. Total employment dwindled by 35, 000 while unemployment is seeing little…
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These figures are significantly showing progress but by no means indicate that things are turning out for the best (Avent, 2010).
Unemployment and its direct correlation with inflation clearly show on these figures. This indicates that stimulus packages and the low interest rates provided by the government is showing its effects. Without these, businesses would not venture into accruing capital and entrenchment would ensue. More and more firms and departments are hiring temporary workers including census jobs which will show countercyclical effects. This suggests that confidence and optimism is slowly gaining momentum. It is a clear indication that more needs to be done before the country can truthfully say that it is out of the recession slump. Robert Reich (2010) suggests that only reason the economy is not in a double-dip recession is due to the boosts injected by the government. He further adds that 41,000 new jobs provided in May which mostly consisted of temporary Census workers is not enough. At the minimum, 100,000 new employments are needed every month to cope with the population growth. Apprehensions are now directed over what will happen once these are directly withdrawn from the economy.
Policy makers play an integral role in ensuring the health of the economy doesn’t flat line. The applied easy money policy tools which are apparent in the contingency efforts of the government to stabilize the economy are already in place. It becomes indispensable at the current situation but “Effectively zero interest rates are creating distortions in capital markets. Monetary conditions need to be back to normal by the time economic slack disappears and inflationary pressures begin to reassert themselves” (Padoan, 2010). Government hand can only go so far before it reverts into prioritizing the need for other programs before money runs out and the Federal Reserve reverts to government
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Explanation The changes in the federal funds rate have been widely identified to lead towards a certain chain of events that in turn has significant effects on various interest rates and economic variables, such as interest rates, investment trends and employment rates among others.
Rich advocates for the utilization of gradual decrease in the benefit of those who are able to get a job instead of a nine-month cutoff period once the person is able to cross the threshold of $1,000. “That way, they preserved some benefits as they eased back to work, rather than losing them all after just nine months” (par.
In 2000 China imported $16.2 billion from the US. By 2010 the amount of US imports in China increased to $91.9 billion (Barboza). The rate of growth in US exports during the 10 year span was 468% which is 413% higher than the export growth to the rest of the world.
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.
Recessionary phase of business cycle often results into decline in growth, increase in unemployment as well as a general increase in the price levels besides resulting into crumbling of stock markets (Blanchard). The recession also results
With Chinese immigration to the U.S. a lot of Chinese labour force learnt the art and style of furniture making from the U.S. furniture manufacturers. By offering better economy of scale than the United States
The GDP growth rate of the U.S in 2009 and 2010 were -2.63% and 2.8% (CountryWatch, 2012). The most recent data shows more positive signs in terms of gross domestic product. During the 3rd and 4th trimesters of 2011 the GDP growth rates of the United States were
objective of this research is to identify the measures of unemployment in USA and to examine the challenges faced by the unemployed people in the country. Moreover, the research will seek to establish the disadvantages of unemployment in USA as well as identify the causative
rity faced by countries and businesses, and organizations should fend off the present information security risks that arise from disgruntled workers who release sensitive information, cybercriminals or people who engage in online fraud (Peltier, 2005). Even though the
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