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The United States Economy: The Slow Recovery of a Nation

Decent Essays
The United States Economy: The Slow Recovery of a Nation Content Introduction…………………………………………………………………………... page 2 Monetary Policy……………. ……………….……………………………………… page 2 Recovery…...……….…………………………………………………………….….. page 3 Conclusion……………………………………………………..…………………...... page 3 References……………………………………………….……………….……….….. page 5 The United States Economy: The Slow Recovery of a Nation Consumer concern over a declining housing market, political gridlock in Washington, high energy and healthcare costs, and budget worries collectively have resulted in an economic meltdown in need of a recovery. After 9/11, central banks around the world cut interest rates so low that investors borrowed disproportionate amounts of money leading to reduced liquidity and a buildup of foreign exchange outside the United States. While at the same time, Americans overindulged in consumption without saving any money. Homeowners extracted value from their homes to subsidize mortgagees with government support coming to late. According to United States Department of Commerce (2013) with the national unemployment rate at 7.4 percent, not counting those that have stopped even looking for work, wages paid to workers were the smallest share of Gross Domestic Product (GDP) since the 1950s. In December of 2008, a full recession hit our country and the Federal Open Market Committee answered the call
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