Macroeconomy of the United States of America

When a surplus of imports is brought into the US, American businesses can suffer due to increased foreign competition. A product in which there is an import surplus is oil. The Wall Street Journal in August 2011 predicted the US would experience an oil surplus. (Herron, J., 2011) Because the US had continued to import at the same levels and domestically produce at the same level, the U. S.has a surplus of oil stored. Since the article was published in late summer 2011, the US has experienced the surplus and has since decreased the amount of imported and domestically produced oil. One would expect that having a surplus of oil; consumers would benefit with lower prices of petroleum based products. As we all experience when we go to the gas pump; this is simply not the case. While this process has many more components to it, the base of it is that a surplus of an import can cause business and domestic consumers to suffer.

The U.S main trade allies are Canada, Mexico, China, Japan, Germany, South Korea, and France combing for a total of 180 billion dollars earned. But not only do we earn money by exporting, we spend money importing the U.S spent 388 billion dollars on imported oil. “We aren't addicted to oil, but our cars are”.James Woolsey..On other products such as forest products, cars, food, and footwear we spend about 124 billion dollars from china which is the most from a country. In 2013, the total U.S. trade deficit was $476.692 billion. This is because the imports of $2.76 trillion exceed its exports of $2.28 trillion (Amadeo, Kimberly). This also shows the economy is strengthening, because of the deficit is lower than in 2012, when it was $537.6 billion. Another big cause to the trade deficit is consumer products. The largest products are drugs, consumer electronics, clothing, household goods, and furniture. Vehicle and mechanical products are another category where the U.S. ran a trade deficit in 2013. They imported $294 billion worth of cars, trucks and auto parts, while only exporting $146 billion, causing a huge deficit of $148 billion (Amadeo,

The “U.S. became the world’s top producer of petroleum and natural gas” in 2013 (Energy Infrastructure). “Capital spending in the infrastructure that moves and transforms oil and gas into everyday products … has increased by 60 percent between 2010 and 2013” (Energy Infrastructure). The rise to become the top producer has led to the decrease in “U.S. oil import dependence” and the “rise of U.S. product exports” (U.S. Oil Import Dependence). The increased exportation of oil and gas by the U.S. has allowed both of these products to become large moneymakers for the United States. Although we will probably never “completely eliminate our need” for oil, we can reduce our petroleum consumption and the damage we inflict on the environment (Reduce Oil Dependence Costs). By decreasing the “dependence on oil” in new vehicles, there has been a

Consumer concern over a declining housing market, political gridlock in Washington, high energy and healthcare costs, and budget worries collectively have resulted in an economic meltdown in need of a recovery. After 9/11, central banks around the world cut interest rates so low that investors borrowed disproportionate amounts of money leading to reduced liquidity and a buildup of foreign exchange outside the United States. While at the same time, Americans overindulged in consumption without saving any money. Homeowners extracted value from their homes to subsidize mortgagees with government support coming to late. According to United States Department of Commerce (2013) with the national unemployment rate at 7.4 percent, not counting those that have stopped even looking for work, wages paid to workers were the smallest share of Gross Domestic Product (GDP) since the 1950s. In December of 2008, a full recession hit our country and the Federal Open Market Committee answered the call

Over the course of Americas 239 years of existence it has had so many different ups and downs in its economic center ranging from the highest of its ups in the roaring twenties to one of its lowest lows in the recent great recession. It impossible to be able to completely guess what the united states economy is going to do next but with the help of a few monitors we are able to estimate where America is at this time and make as good of a guess on where it is going than ever before. With these tools we can see that the United States is on a steady incline shown through the improvements in the Gross Domestic Profit, low inflation, the rising labor market along with the Manufacturing & Trade Inventories & Sales tool.

Trade deficit refers to the situation when the value of imports exceeds the value of exports. This is synonymous to 'surplus' when the nation has a surplus of imported goods. The whole affects the income of the USA during that given period hence affecting the national debt. This, in turn, has a dribbling down effect on all related factors as explained in the following essay.

An increase amount of people have wondered with the high amount of capital costs and some uncertainties that the economy has had brought an economic setback with it been related to the modern agriculture which has made it difficult for young farmers to successfully enter the sector it making the production of quality food very difficult. The average age of U.S. farmers has risen from the age 50 in 1978 to 58 in 2012, and a diminishing fraction of U.S. principal farm operators are younger than age 35 (USDA, 2014b). This has been to some extent with some shifting demographic reflects the overall aging of the population, but it does reflect a steady decline in the rate of new farm entry and the decline number of transfers of family farm

The United States of America’s status as a global superpower has been recognized since the end of World War II. The mobilization of the idle economy of the United States contributed significantly to the Allied victory of the war and America’s subsequent global superpower designation. Before World War II, the United States military ranked poorly in strength against other nations; however, wartime production improved its ranking to one of the strongest. Collectively, the government was able to raise money to fuel the war machine through the goodwill and patriotism of the American people. Altogether, Americans were able to come together to create the great nation which all others are measured up to.

Some describe it as a "cancer" that threatens to devour the American dream and others say the trade deficit poses no threat to America's economic prosperity. The United States has run such large trade deficits over the past two decades, what those deficits tell us about the relative strength of the U.S. economy, and how the trade deficit is relevant to America's place in the global economy. Well, I say Just follow the Dollars. It is an indisputable fact that America's balance of trade has turned sharply negative, both in absolute and relative terms. While the size of the trade deficit is unusual, its existence is not: Americans have run trade deficits with the rest of the world for the last twenty-three years. Why all this "red ink" in

Every country has an economy that shows the give and go of wealth and resources between producers and consumers. Some economies are better than others; here in the United States we have been stuck in a recession, meaning our economy is declining. Even though the United States economy has been in a recession for the past 8 years, its still, if not the best compared to other countries. The United States has a mixed economy made of individual producers and consumers, this economy allows the consumers choose what goods are produced, the prices and services. The United States economy is mixed due to the fact that even though it has properties of a market economy, the economy is controlled by the government. In the United States there are both

Among economists, we all speculate what will happen to an economy in the future. Who will be the next United States? Right now, the United States has the largest economy in the world and one the highest gross domestic products per person. People are speculating that countries like China and India will one day have an economy that makes America’s look small. By looking at China’s growth in gross domestic product, that very well could be a reality someday. Could Russia one day have an economy that rivals that of the United States? Russia, like the rest of the world, is in a time where their economy is stagnating. After several years of growth that looked promising, the Russians saw their economy drop almost 25% during the Great Recession. Even though the Russians rebounded quickly, with a GDP increase of 65% from 2009 to 2013, they’re back down roughly 7%1. So while I believe the Russian can have a good, growing economy, it doesn’t look like they’ll ever have an economy that rivals in size or in gross domestic product per person.

The United States is currently experiencing a slow recovery from the recession of 2008-09. The current unemployment rate is 7.7%, which is the lowest level since December of 2008 (BLS, 2012). However, this rate is believed to higher than the rate that would occur if the economy was operating at peak efficiency, and it is also believed that there are structural issues still underpinning this performance. For example, the number of Americans who have exited the work force as the result of prolonged unemployment is believed to be higher than usual. In addition, the Congressional Budget Office (CBO, 2012) notes that long-term unemployment of greater than 26 weeks is at a much higher rate than normal, which will have adverse long-run effects on the economy, since workers with long-term unemployment often find their career paths derailed.

The vast majority (about three fourths) of our trade deficit in manufactured goods is caused by imbalanced trade flows with Asia, as shown in Figure 2. The deficits with Asia are large and rapidly growing, despite very high rates of growth in the region until 1997. Europe and NAFTA were each responsible for about 13% of the deficit in 1998. The U.S. ran a small surplus with the other countries in the Western Hemisphere, and with the rest of the world, in this period. http://www.epi.org/content.cfm/webfeatures_viewpoints_tradetestimony

There is one thing in the field of economy that everyone agrees with, and that is the economist point of view. Economists hardly ever agree on issues related to a country’s economy. Then comes the point of contention, whether trade deficit is beneficial or harmful to an economy of a country? The answer to the questions is that the trade deficit can discuss both the benefits and detriments for a nation, but depends on situation of the country involved, the decisions made by the policy makers and the size & duration of the deficit in question. The study will analyze the pros and cons of trade deficit within the United States economy.

A trade deficit in the U.S is a situation in which the value of U.S imports of goods and services exceeds the value of its exports and will often support a government budget deficit. The U.S trade deficits and surpluses compared with federal budget deficits and surpluses. Basically, this means that United States exported more than it imported until the mid-1970s. After that, it stared to experience large trade deficits. During the 1970s, imports of goods and services began to consistently exceed exports of those items on an annual basis in the United States. During the same time, the federal budget deficit rose dramatically. Both deficits increased once again in the early 2000s. Once the economic chaos happened in the late 2000s which includes the recession time, the budget deficit exploded while the trade deficit shrank somewhat. However, the larger trade deficits tend to support larger government budget deficits. An economic measure of a negative balance of trade in which a country’s imports exceeds its exports is a form of trade deficit. A trade deficit represents a large amount of money of domestic currency to foreign markets. When breaking down trade deficit, the economic theory represents that a trade deficit is not necessarily a bad situation because it can often be corrected over time. However, some economists are worried that trade deficit has been reported and growing in the U.S for the past few decades. This means that