The Gross Domestic Product ( Gdp ) Of The United States

The unemployment rate has dramatically increased over the last several months. This increase has created many complications for the American people. Although the United States economy has created over 7 million jobs, there is still a long way to go until the economy is back on track.

The unemployment rate in America is a huge factor with noticing on how well the labor force has been doing in the past. Overall the unemployment rate in America has been slowly decreasing in the past couple of years. “The unemployment rate hit 10 percent in October [2009], and there are good reasons to believe that by 2011, 2012, even 2014, it will have declined only a little” (Peck). It is a slow process, but hopefully in the future it will not be a problem anymore. Another statistic that should be looked at is the poverty rate in America. “The official poverty rate in 2006 was 12.3 percent, down from 12.6 percent in 2005” (U.S. Census Bureau). The poverty level has relatively remained level and has not changed drastically. The poverty

The health of the current U.S. economy appears to be growing gradually. The second quarter real GDP growth was 3.7% and the unemployment rate declined to 5.3%. The U.S Federal Reserve (Fed) is expected to raise interest rates in the near future when it sees clear signs of strong economic growth and improvements in the job market.

The increase largely showed a positive contribution from personal consumption expenditures (PCE), nonresidential fixed investment, residential fixed investment, private inventory investment, state and local government spending, and exports. Current-dollar GDP increased 3.4 percent, or $589.8 billion, in 2015 to a level of $17,937.8 billion, compared with an increase of 4.1 percent, or $684.9 billion, in 2014. Real disposable personal income rose 3.4 percent over the past four quarters, a rapid pace. At the same time, real consumer spending rose only 2.6 percent. This difference indicates that consumers have tended to save a rising fraction of their income gains over the past year.

The recent job growth is impressive with an increase in 3.4% though the unemployment rate is still at 10% (U.S. average is 5.2%). With this recent increase, there is

According to easynomics.com, from Q3 2012-Q2 2015, there was a confirmed upward trend with real GDP rising which translates to approximately 2.26 percent annual growth rate. Although the increase rate is too slow that people may not feel the recovery, but it does suggest the increase.

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

Consumer expenditures rising during this term will move the aggregate demand curve to the right as increased spending increases demand. This BLS report indicates that the next term should show statistical aggregate demand increases, and according to the Classical model perspective encourages a laissez-faire approach concerning correction of the long-term economic factors (Colander, 2010). The Classical model works perfectly as consumer expenditures are trending on the rise when factoring consumer expenditures. Until a more apparent downturn shows itself, the invisible hand should continue to work naturally.

The U.S economy is a mixed economy and it is the largest in the world. It accounts for 17 to 22 percent of the world’s GDP. Consumer spending in U.S accounts for 70% of the national economy. People generally spend on necessities like food, housing and clothes and on buying non-essential goods and services that fall under discretionary spending category. With a huge reduction in gas price and unemployment there is a steady increase in discretionary spending these days. According to U.S bureau of labor statistics consumer spending increased 3.4 percent in 2015 after advancing 4.2 percent in 2014.

In December 2007, the United States experienced a time of rising unemployment and declining GDP (gross domestic product) that lasted until 2009. This period was dubbed the Great Recession due to the severity of the negative impacts. The U.S. National Bureau of Economic Research defines a recession as a “period of at least two consecutive quarters of declining levels of economic activity” (Krabbenhoft), and during the time span between 2007 and 2009 GDP decreased by 3.5 percent and unemployment rate increased more than 5 percent. The gross domestic product indicates the total value of goods and services produced over a period of time, so production and consumer spending decreased drastically. The government attempted to alleviate the unemployment rate and increase economic growth by creating what’s known as a multiplier effect. The multiplier effect occurs when there is an increase in final income from the increase in spending from the initial stimulus. Consumer expenditures make up 70 percent of GDP, and

“The combination of the weakness in energy weighing on investment along with high levels of indebtedness keeping consumer spending modest puts the weight on the external side of the economy to much of the lifting of growth in the period ahead. The combination of a recovering U.S. economy and the more competitive currency are showing early signs of a bounce in exports, a trend that is needed to continue in the year ahead for overall economic growth to accelerate.”( Craig Wright, RBC economic

The current rate of GDP growth, according to the Bureau of Economic Analysis, is 2.7% (for Q3), and it was 1.3% in Q2 of this year. This rate reflects relatively slow growth, with challenges remaining in the domestic market and with sluggishness in Europe suppressing exports to that region. The rate of GDP growth is predicted to slow to a decline of 0.5% between Q4 2012 and Q4 2013, the US re-entering recession, according to the Congressional Budget Office's projections. These projections are based on the provisions of the Budget Control Act being enacted, though any observers are doubtful that this will occur.

In January of 2016 (for the U.S.), the personal savings rate was 5.2% [3]. In January of 2015, the personal savings rate was 5.5%. [4] From 2015 to 2016, the personal savings rate decreased by 0.3%. The GDP multiplier is 19.23 for 2016 (that means real GDP has total increase of $19.23 if the original planned expenditure was $1). The GDP multiplier is 18.18 and for 2015. The multiplier has increased between 2016 and 2015. The savings rate has decreased which means consumer spending has increased. Disposable income has also increased from March of 2015 to March of 2016.

The unemployment rate in the United States has improved dramatically over the last two years, from a high of 8.3% in July 2012, to a low of 6.6% in January 2014. In October of 2012, the civilian labor force increased from 578,000 to 155.6 million, labor force participation increased up to 63.8%, and total employment overall rose by 410,000! Since then, the unemployment rate has been falling at a stable rate due to a political push from Washington DC and new employment initiatives. The inflation rate over the last 2 years has been relatively stably, with a few major increases and decreases in 2012 and 2013. It reached a high of 2.3% in June of 2012, and reached a low of 1.0% at the end of 2013. The federal interest rate has remained at a constant .25% over the past few years.

The wealth and success of a country is something that theoretically is very hard to measure and quantify. However, tools called Indexes can be used to report on the past, present or future state of country. The usage for these Indexes is quite obvious: they can be used to benchmark the situation of a country compared to its peers, create historical trends in order to estimate if any improvements have been made throughout the years in multiple fields. Of course, they can also be used as political tools for the world leaders for internal purposes (linked to government policies) but also external policies as it can be a mean to determine the power that a country can have on the international level. The main Index that has been used for the past 80 years and is still used nowadays to measure the economic wealth is the Gross Domestic Product (or GDP). It is important to remember that the initial goal of these indexes (and particularly the GDP) is to measure and give a detailed report of the addition, subtraction and multiplication of certain numbers that compose a country’s economy. Therefore, a measurement tool is not an end goal in itself.