Economic History of Countries

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1. Are there any hidden assumptions or price rigidities in the country or countries that might inhibit market force indicators from revealing the true economic health of the country, thereby either preventing government policy actions from correcting the problems or otherwise making them ineffective and counterproductive? This is absolutely the case. Prior economic histories of countries around the world have proven that there are general results that can be expected from a given action or series of actions, but this does not always hold true. The current state of affairs in the United States is a glistening example of that. The groundwork and root statistics of the United States economy circa February 2013 are pretty good, but jobless rates are still too high and GDP growth is anemic to nothing. There are two commonly attributable reasons for that. The first is that businesses are being very conservative with their funds. They're not investing and spending the way they usually would because of the uneven and unpredictable conditions that are seen with the federal government, the level of spending in general and the wider market. The second primary reason that the economy is seemingly stuck in low gear is because consumer spending is way down, just as home values are way down, and this has led to a much higher savings rates rather than consumers making purchases discretionary and high-ticket items in general. What this leads to is that even if the government of the United
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