Economic Growth And Its Effect On The Economy

After World War II, society experienced many changes due to economic growth. The reason for the rise in the economy is "… the developments in technology, methods of production, communication, and transportation..." (Background; lines 1-2). These changes "… led to far more goods and services for many people..." (Background; Lines 10-11).

The objective of the American Recovery and Reinvestment act, also known as the “stimulus” was to end the recession that had occurred in 2008. The recession had a major impact on the U.S job market. The United States congress approved the act which consisted of an investment of 787 billion dollars in order to encourage customer spending and also to save old jobs and create new ones.

For Science and Technology: $10 billion for new scientific facilities (increase) and $6 billion to improve internet access in rural areas (Increase). For the Infrastructure: it included $30 billion for highways (Increase), $31 billion to modernize federal buildings and infrastructure(Stimulate) , $19 billion for clean water (Stimulate), and other environmental investments, and $10 billion to improve public transit and rail infrastructure(Stimulate) . For Education: $41 billion for local school districts(Increase) , $79 billion to maintain schools (Stimulate) , $15.6 billion to broaden the federal Pell Grant program (need based grants to fund education)(Increase), and $6 billion to modernize higher education programs(Stimulate). For Health Care: $87 billion for Medicaid (Increase), $20 billion to improve technology in the medical field (Increase), and $4 billion to improve preventative care (increase). The plan also includes $140 billion directed towards tax cuts of $500 per worker or $1,000 per family over two years, expand tax credits for working poor with children, and a $2,500 college tuition credit. All of this is a part of the G in the C+I+G+Xn, GDP Formula. Gsavings= Taxes -Gov’t Spending-Xn (Exports – Imports). The Treasury’s $700 Billion in TARP funds, which were originally aimed at stabilizing the financial sector, should be used to provide relief to other industries and “for things that look more like stimulus and less like asset purchases.” Some of the things that this includes is: Automatic economic stabilizers like the extension of unemployment insurance, the expansion of health insurance, Mortgage relief for those American’s facing default, the federal reserve’s purchase of mortgage-backed securities and other types of securities in need in the future, and an

With the upcoming presidential election, this year there is one very unnerving fact that has received overwhelming bipartisan recognition; America has a serious problem with infrastructure and something must be done. Across the country, dams, roads, sewage systems and bridges were built with Works Progress Administration funds in the 1930s. Seventy years later, they are in despair. As a nation, we must address Americas’ failing infrastructure and close the ever-increasing infrastructure deficit before the backbone of America crumbles right under our own two feet. To do so U.S. policymakers must act now to raise funds, without increasing our national debt. No intervention by the government will lead to a continuance of deteriorating the health

After the crash of the market in 2008, Obama created the American Recovery and Reinvestment Act. The act was an “economic stimulus package”(Amadeo). The act would cost $787 billion. The act was meant to help families and small businesses instead of big business so that people in the United States could put trust into the system again which could stimulate spending and growth. For the purpose of stimulating demand, $260 million was put into cutting taxes, tax credits, and unemployment benefits (Amadeo). This included things like tax credit for first-time homebuyers, college tuition, and extended unemployment benefits. Stimulating demand and trust from the people was the biggest fitting puzzle piece of the stimulus package. The only way for an economy to flourish is when people get extra money that they can spend which would create growth in consumer

America has recently fallen into a great recession, and though some claim we are no longer in a recession, our country and has never quite bounced back. Our economy is fragile and unstable. “In June 2009….native born workers lost 1.2 million [jobs] (Herbert 565).” Businesses are afraid to hire more workers; for fear that consumers aren’t comfortable spending money quite yet. Consumers are afraid to spend money for fear that they won’t be earning any more. People who were once financially stable are barely getting by, some even homeless. This recession has been said to be equal to, if not worse than, the Great Depression. “The human suffering in the years required to recover from the recession will continue to be immense (Herbert 565).” Recovery may be happening, but is definitely an unstable process.

Economics growth is, it the short run an increase in real GDP and in the long run an increase in the productive capacity of an economy (the maximum output that the economy can produce). GDP stands for Gross Domestic Product which is the country’s production of goods and services valued at market price in a given time period. Real GDP is when these figures are corrected for inflation using a base year (The UK uses 2003 as its base year). It can be measured in three different ways; the output measure is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government. The

The funds from the bill were to be allocated to different projects that were designed to create jobs. Part of this was a distribution of the funds to states based on how effectively they would use the funds (Chenn). In an article quoted by Chenn, Daniel Wilson says that the bill is aimed at states that are in need of funds, therefore they will spend the money

Economic growth is defined as an increase in the GDP and standard of living over a period of time, and as indicated by those numbers, our GDP has been pretty steady, which is why the economy is not growing. Some people may not be able to experience economic growth. For example, if a person inherits a house from a family member that passed away, they might not be able to actually enjoy that increase in the standard of living because they might experience property tax. Another indicator of economic growth is an ability to increase a person’s leisure time. With an increase in more efficient technology, output time can increase. Meaning that when it previously took eight hours to complete the day’s quota, it could now take four hours, and the workers are left with four hours to do something else, but still make the same amount of money. A third indicator of economic growth is a change in the social norms of the country. In 1920, women were given the right to vote. In the 1970’s, women started working.

The current election cycle has two candidates that are both polarizing and have many flaws. The one issue that both candidates can agree on is infrastructure. Both believe that the US must invest in new infrastructure to rebuild the old failing structures that currently exist. NY Times contributor Paul Krugman agrees with the candidates and offers his opinion of how the government can pay for the new construction (1).

At the present, the Australian economy is still in a period of slow economic activity brought about by multiple contributing factors. A large factor of this would be the decrease in China’s level of economic growth that has resulted in a large decrease in demand for Australia’s goods and services. Presently Australia’s percentage debt to GDP ratio is approximately 41.1%. Since the previous year the debts rate of growth has increased slowly. This level of debt is the highest that Australia has ever recorded. For the 2016/2017 budget the estimate for the government revenue this year was approximately $406 billion. The predicted spending for the government during this year was $451 billion. Therefore, the gap in the government expenditure and

America's leaders shouldn't worry so much about economic growth if that growth serves to enrich only the wealthiest Americans. Many economists, particularly conservatives, warn that restricting trade and adding new regulations to the labor market would crimp economic efficiency and slow growth. Heather Boushey, a liberal economist who has discussed policy informally with Clinton, and who runs the Washington Center for Equitable Growth think tank, argues that it is not politically wise to play down the need for economic growth. Many liberal economists, including some close to Clinton, contend that some policies designed to reduce inequality will in fact spur faster growth.

Coming out of a lackluster 2015, GDP growth slowed to 1.5%. Confidence of investors and consumers was unable to make significant gains as a result of the Presidential election and global uncertainty. The outcome of the 2016 election had a great affect on the US economy and the fiscal and monetary policies that could be put in place. Uncertainty over taxes, regulations, and trade following the election have led to a slowdown of growth.

Economic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1.

Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of