The United States Economic Position Based On The Consumer Price Index ( Cpi )

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This paper analyzes the published article report on the United States economic position based on the consumer price index (CPI) and gross domestic product (GDP) of the American footprint. The article however does state there are negative effects of the King Dollar – Low energy rate economy, yet it signifies there is major gain to the American economy based on the high dollar effect or value of currency. Some of the negative effects are to include depreciation of natural resources and high energy costs in production. In adverse, a few positive effects of the High Dollar – low energy ratio are to include a gain of profit and room for innovation to later encompass the ability to produce more job establishments and opportunities. Keywords:…show more content…
As mentioned in the article, Larry Kudlow states the fact of how American consumers benefit from increasing income while strengthening the purchasing freedom pressing many American firms to become more competitive. The question presented is if the effect of the high dollar with low energy net of the United States revenue is headed in a positive direction or rather placing the American society in a possible dilemma in the near future. As mentioned, exports are a major contributing factor to the United States, however so are the accessibility of imports. Larry Kudlow (2015) mentions the gain of American business due to lower cost imports. As a result, the higher the American dollar, outsourcing its competitors, the possibility of ease for the nation to obtain imports from various countries at lower prices rather in the form of currency or rather in the exchange of other goods and services. In comparison, the increase of the dollar demands higher wagers for labor. The resulting factor allows consumers to purchase much freely, in addition promoting a boost of the economy. Government interface is highly demanded to ensure a nation’s economy is able to prosper, recover or sustain as a result to enable stability. Macroeconomics is exhibited in several ways when decisions making skills are engaged to promote prosperity of a nation. For example, the analyzing of the CPI and GDP to help determine a reasonable minimum wage whereas affecting all businesses and
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