The Current State of the United States Economy Essay

The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated “Too much of a good thing can be wonderful” and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming economy, instead of having an outsized tax cut, we should use the surplus to further pay down the national debt. A tax cut, though most Americans would favor it initially, would prove counter productive. Cutting taxes would over stimulate an already raging economy, and enhance the possibilities of an

As people spend more money, the demand for money also grows. When money is in high demand, the Government lowers interest rates, thus creating access to more funds by more people and more goods will be sold. Consumption is a good indicator of consumer confidence, which means people feel secure about the future and don't mind spending their money on more frivolous things. When consumer confidence is low, people hold onto their money and don't spend as much. I feel that if Americans are confident about their jobs and their future that their consumption will continue to increase and the economy will gradually start to rebound. If , however, they are not confident then consumption will go own and the economy will grow stagnant or get worse. Where I live, the current economic crisis doesn't seem to have penetrated the area as much as other parts of the country. Our unemployment rate for Kansas is 6.3%, fairly low compared to the rest of the country. The highest is Nevada with 12%. Here we have new businesses and houses going up everywhere. My employer, General Electric, has just finished building a 100+ wind turbine park that I am currently in charge of. I don't think that the local area will be affected by the changes in consumption or consumer confidence as much as other areas would be. This town in particular seems to be fairly self contained, lots of local mom and pop shops, not as many large national businesses that if they packed up and left town would harm the

In recent years, the economy in the United States has been in what most would see as a recession. American people differ in the way they react to a recession. Some, such as Michael Moore, feel it becomes a downward spiral as big business and it’s stockholders gain more money and power, and it’s workers gain less money and stability.

In the U.S., persistent high unemployment remained as of December 2012, along with low consumer confidence, the continuing decline in home values and increase in foreclosures and personal bankruptcies, an increasing federal debt, inflation, and rising petroleum and food prices. A 2011 poll found that more than half of all Americans thought that the U.S. was still in recession or even depression, although economic data showed a historically modest recovery.

The social perceptions surrounding the recession are strong influences on every individual’s personal economic decision making. Taking into consideration other influences such as the media, possible psychological errors, and personal self awareness and control it is easy to see how the current mood is fairly

The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic

The U.S. economy appears to be on track for a sustainable recovery from one of the biggest economic problems in history, the Great Recession. Unemployment and inflation are both down from where they had been and things have shifted towards recovery. Inflation is likely to remain in an acceptable zone, but policymakers must be vigilant concerning inflation expectations. Employment has recovered slowly but surely as well. Uncertainty/Fear appears to be growing among American, particularly with the unrest in the Middle East, but studies are showing that faith in economists (and the Fed leaders) among citizens is growing rapidly. Due to the uncertainty, flexibility is

$33,330. According to College Board, that is the estimated amount it will cost for a full-time student to attend a public college or university in their home state for the 2016-2017 school year. Most Americans view this price as a reflection of the high value placed on postsecondary education as a means to success. However, for disadvantaged students, college comes at a hefty and burdensome cost, one that their families often cannot afford. To address concerns over higher education and its inaccessibility to low-income students, Vermont senator, Bernie Sanders, declared that “It is time to build on the progressive movement of the past and make public colleges and universities tuition-free in the United States — a development that will be the driver of a new era of American prosperity.” Sanders’s widespread support from debt-straddled Democrats and Independents, in turn, has prompted Democratic presidential nominee, Hillary Clinton to embrace a more progressive stance on college education by promising to make debt-free college available for everyone. While both candidates gained much praise for their proposals, critics claim their plans are too idealistic and lack the proper funding and support to be successfully implemented in today’s politically gridlocked government. Bernie Sanders and Hillary Clinton’s continued push for increasing accessibility to higher education despite controversy over its feasibility reflects the predominant American belief that quality education is

Ever since the recession we have we experienced a serious economic depression. People loosing jobs that they were going to retire from. A change of location and lifestyle has left thousands of families in America out in the cold. Due to financial hardships homes all over America are experiencing a foreclosure crisis.

Many factors such as the U.S. Sub-prime mortgage crisis, credit crunch, decline in investments, higher unemployment rates, terror attacks, and the housing bubble caused the great recession of 2007 to 2009. The resulting loss of wealth led to severe cutbacks in consumer spending. This loss, combined with the craziness of the financial market led to the collapse and business investments. As consumer spending and business investments went down massive job loss followed. The largest indicator of economic activity is the real gross domestic indicator (GDP). The recession had a loss of business and consumer confidence. Spending declined and millions of jobs were lost. This resulted in a downward shift in the GDP, and a severe increase in unemployment

The US should keep US economy on top when it comes to trade. This will provide people in our country with better products and improve the overall standard of living. We would help poorer and more underdeveloped countries than us that need assistance. Also, putting the US economy on top will result in keeping peace with countries. Some say we will focus less on values and more on resources and money and make other countries economy’s weaker, but we will still hold on to values unless they get in the way and we will actually help other economies by trading with them even though the US is still on top. We should make sure the US economy is on top so we can help the people in our country have better lives and help and keep peace with countries other than us.

The need for governance within the society cannot be downplayed, especially as it pertains to 21st century living. The structure of governments differs from country to country, which largely defines the economic edifice. For instance, Saich (2004) provides that the Maoist period in China articulated a central political and administrative system of government, whose result was a closed or centralized economy. Conversely, the current open economy of America or Australia is largely dependent on governance based on devolution. In many democratic nations, the government consists of a legislature, whose role is to make laws; an executive, whose role is to implement laws; and a judiciary, whose role is to interpret laws and settle disputes. According to The Marketing Education Research Center (2009), originally, governments were not intended to have a hand in business. However, a paradigm shift occurred, especially in the west, after the Great Depression, whereby governments realized the need to regulate economic and business activities.

Besides household incomes, high fuel cost and energy prices, interest rate is another key factor that determines consumer spending in the economy. Interest rate hikes have already reduced demand for mortgage refinancing and home-equity loans, two significant sources of cash that increased consumer spending in recent years. As interest rate rose, consumers most likely found it less desirable and less reasonable to borrow against the equity in their homes. As a result, they tend to put off buying luxury goods for their home, such as TVs, entertainment systems, or other goods. With the above aspects, we as consumers are

The Economic Outlook for 2014 to 2018 the growth of real GDP will pick up considerably beginning in 2014, CBO projects after economic activity adjusts to this year’s fiscal tightening. In CBO’s projections, economic growth is 3.4 percent in 2014 and averages 3.6 % per annum in 2015 through 2018(see Table 2-1). That growth closes the gap between actual and potential GDP by 2017. As a result of that stronger economic growth, the unemployment rate in CBO’s forecast falls from 8.0 percent in the fourth quarter of 2013 to 6.8 percent in the last quarter of 2015 and then declines gradually to 5.5 percent in the fourth quarter of 2018.The quickening of economic growth in 2014 reflects CBO’s projections of continued improvements in households’ income and wealth and credit markets. Consumer spending will be supported by faster growth in wages and salaries (a result of more robust employment growth) and by continued gains in household wealth, owing to persistent increases in house prices and stock prices. Stronger demand for goods and services by households, in turn, will encourage businesses to undertake investments in structures and equipment as well as to engage in further hiring. Greater availability of credit will also support consumer spending and business investment. In addition, CBO expects that increased spending by federal, state, and local governments will add a small amount to overall demand after 2013. In contrast, net exports are likely to decline for much of the

New resource sector capacities are coming online, and investment is incurring in areas outside the housing and mining sectors. This improvement in household incomes should continue to see consumer spending with improvements in wages expected to follow. The Federal Government are forecasting a budget surplus by 2020/21.