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The Economic Crisis Of The United States

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Many people might want to say that the US economy is climbing out of the recession and becoming more stable. Yes,the economy is changing, the unemployment rate is getting better, the GDP is showing a positive increase and the inflation rated is currently at 1.7% which are all indicators that the economy is getting better. Yet, the Fed’s need to monitor the economy because there can be a potential bounce back into recession with the problems in the Middle East, Russia, and elsewhere in the world which can greatly affect the economy here in the U.S. if the U.S gets deeply involved.
Currently the macroeconomic situation in the United States is still in the mid crisis, fighting very hard to bounce back to its norm. The economy is still facing …show more content…

This indicates that the unemployment rate is getting better so is the stock market, Wall Street stock also trend up (Cox, J. 2014). The Bureau of Labor Statistics also reports in the second quarter that “unemployment rate declined by 329,000 to 9.3 million, the number of unemployed individuals fell by 1.3 % and 1.9 million over the year respectively.” (Bureau of Labor Statistics, 2014)
As the employment rate is improving, so would be the GDP for the U.S. A year ago, the GDP was 16661.0 billion, a month ago, it was 17311.3 billion and this week the GDP reported 17328.2 billion, which indicates that the economy is improving. There is a total increase in the Gross Domestic Product of 667.2 billion this year (Bostjancic, K. (2104). The GDP is being closely monitored by the Federal Reserve Bank (Fed) to determine if the economy is growing too quickly or too slowly. If it is determined that the economy is growing too quickly, to avoid inflation the Fed will increase interest rates. Likewise, if it is growing too slowly then interest rates will decrease to increase consumers spending and expand company investment.
The expansionary fiscal policy is intended to stimulate the economy during a recession or if there is anticipation that a recession is approaching. The expansionary fiscal policy encourages government spending and decreases taxes. Through government spending and decreasing taxes this will simulate aggregate

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