Optimism in the Long Run

Throughout their power to change interest rates and buy massive amounts of financial assets, the Federal Reserve System applied more influence over economic growth and the employment rate in recent times than any other government entity.

In the United States, there is the growing macroeconomic issue over the rate of economic growth. This issue consists of the potential regression of the United States, Gross Domestic Product, commonly known as GDP. GDP can be defined as the market value consisting of all the goods and services that are produced in a country that falls within the given time period, usually marked as a fiscal year. In terms of economic growth, GDP will always have a direct correlation to growth within a country. An increase in GDP will lead to an increase in the economic growth rate, and contrastingly, a decrease in GDP leads to significant decrease in economic growth rate, also known as a recession. This current macroeconomic issue is presented due to the fact that the United States is poised for a year that is associated with an economic growth rate between 0% and 1%.

In the time period shown in the BEA release highlights document (2015, bea.gov), it is clear that real GDP increased 2.0 percent in the third quarter of 2015, according to the third estimate by the BEA. The document also states that the main driver of the increasing GDP is the rise in consumer spending on

In, 2% GDP Growth—Get Comfortable With It, the author, Sean Hanlon, explains that the slow growing GDP is misleading as a measure for a strong economy. The US gross domestic product or GDP advancement has been moving at a rate of 2% which is low in the midst of an economic recovery. This doesn’t mean that the economy is weak though because it isn’t. Hanlon argues that “accelerating technological advancements” are pushing the GDP downward.

A high GDP or a percentage increase is considered good and represents a positive, growing economy whereas a lower GDP (in comparison to other countries) or a percentage decrease represents just the opposite. In the article, it takes a closer look at the year so far and breaks it into quarters. The GDP has increased from 1.2% in January to 3% in August. The change and jump represents economic growth occurring.

GDP now is in the US is 3.3%, GDP has lowered in the last 10 years. In 2007 the GDP in the US was 4.40%. There isn’t a pattern for how much it changed in 10 years it kind of went up and down since 2007. In the future I think that GDP will raise more and more.

Over the last several years, the United States economy has experienced steady growth. While growth has been slow, it is evident that the American economy is making positive improvements.

However, I do not agree with the Fed’s policy of Quantitative Easing. In my opinion, QE has been detrimental to the recovery of the U.S. economy. It is because QE has caused the devaluation of U.S dollars, hyperinflation, and instability of the political system.

The economic growth rate is sluggish at best with the year 2005 having a growth rate of 5.25 percent and 2006 having a slightly lower growth rate than the prior year. Many of these setbacks are due to the

The economy of the United States is considered to be the largest economy in the world. Despite being hit particularly hard by the financial crisis in 2008, the United States has recovered faster than many of its developed‑world counterparts. In 2015, the Economic Report of the President, an annual report written by the Chair of the Council of Economic Advisers, was estimated the United States’ Gross Domestic Product (GDP) to be $18.7 trillions, with 2.4 percent growth.

The U.S. economy is slowly regaining its strength since the 2009 financial crisis. In 2017, consumer spending achieved its biggest increase in eight years , signaling a general positive market environment. Furthermore, the developing geographies also experienced a tremendous economic growth across the years as it currently contributes around 80% of the global economic growth.

Consumption and government spending both increased from the previous year. The big weaknesses for Real GDP growth came from business investment and exports decreasing from the previous period.

GDP/budget: Expansion of the U.S. economy slowed over the first three months of 2017. According to the Bureau of Economic Analysis, the first-quarter 2017 gross domestic product grew at an annualized

Following the 2008 Financial Crisis, economies around the world enacted quantitative easing to effectively lower interest rates while also producing inflation. Theoretically low interest rates aim to stimulate the economy by promoting consumer spending and borrowing over savings. Consumers can borrow at such low costs that purchasing everything on credit becomes more attractive than buying it outright. Typically in a low interest rate environment, consumers will purchase new homes, automobiles or

QE2 is the 2nd time the US Federal Reserve used Quantitative Easing to stipulate the economy. It was initialized in the fourth quarter of 2010 so that it can help to recover the recession that took place in the year 2008. The Federal Reserve brought 600 billion dollars treasuries in long term. This was expected to bring down the yields of treasuries and bonds thereby introducing an inflationary pressure on the economy (Joseph G, Matthew R, Julie R, Brain S, 2010).