Eco 372 - Week 3 - Economic Critique Essay

1796 Words Jan 15th, 2013 8 Pages
Economic Critique
ECO 372

Economic Critique
Describing the current state of U.S. economics, we will discuss several factors to include unemployment, future expectations, consumer income, and interest rates. We will identify the existing effect of the economic factors on aggregate demand and supply. In addition, we will identify current recommended fiscal policies by government leadership. With this information, we will then evaluate the effectiveness of the current fiscal policy recommendations from both the Keynesian and Classical model perspectives. To better understand what the state of the unemployment situation is in today’s current economy, it was determined that a good place to start was with the Bureau of Labor Statistics
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This current recession is causing the unemployment rate to rise to an all-time high and this is a long-term epidemic and does not have a short-term fix. For most of the currently unemployed, this means that the job skills they currently possess no longer match the current jobs market. People will now have to learn to adjust and be willing to learn new skills. In a word, we all have to learn to be what the employer needs us to be, we all have to take on more tasks, and most of all be a team player (Colander, 2010).
In the current economy, many Americans are concerned that a rebound is still many years away. The hope and expectation appears to be that a new Presidential administration will help turn the tide on the depressed economy. However, expectations do not appear to be overzealous as Americans still witness home foreclosures, job layoffs, bankruptcies, and an increase in requests for public assistance. The average American still seems to be overwhelmed with these economic issues, whether on a personal basis or among friends and family. Expectations seem hopeful but not overly optimistic, as many families continue to live paycheck to paycheck, struggling to make the mortgage payments, to fill their gas tanks, and often must choose between medication and groceries (Censky, 2012).
There are numerous factors affecting consumer income during the current economic recession. Unemployment, it seems,