UK Economy

It is a difficult decision to know when and where to disburse money during a recession. Deficit spending can have several advantages, when done correctly. Deficit spending can be a major stimulus to economic growth and actually lower long term government debt (Amy, 2007). The government can borrow money at a lower rate while investing in the future. Injecting money into the economy can help achieve increases in aggregate demand and economic activity (Government Spending, n.d.). One advantage that can come from deficit spending is investing the money to enhance infrastructure. Spending money on infrastructure, such as

Unemployment is currently measured in the United States by counting those who "do not have a job, have actively looked for work in the prior four weeks, and are currently available for work" (Leonhardt). This means that a great deal of people are not counted as unemployed because they are discouraged and have not looked for work in the past four weeks. Or, the person was injured in some way and they are "not currently" available for work. This does not mean that the people in either of these groups do not actually wish to find work, but it does mean that they are not counted because of an archaic system that has been used by

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.

As of March, 2013 the U.S. National Unemployment rate was 7.6%. A total of 11.7 million people were reported as unemployed by the Bureau of Labor Statistics. This rate is improved from the height of the recent recession, where the statistic floated around 9%, but it is still not the usual 3-4% figure we are used to seeing in regular market conditions. (bls.gov, US, 2013)

The government has been implementing policies in the improvement of the growth in the UK. Such as improving economic growth during the Great Depression and the recent financial crisis. A brief history by (Pettinger, 2016) on the use of fiscal policy, Keynes promoted the use of fiscal policy as a way of boosting growth. Moreover, during 1970-1980s the government switched to using monetary policy in influencing the economy. However, the government later reverted to using the fiscal policy in the recession of 2008-2013. Whether or not fiscal policy is the key policy in the process of improving economic growth is the issue.

Currently the unemployment rate is twenty-three percent (Roberts). That is a very high rate compared to past when

While there are expectations of a yearly gain of nearly 2.3 million net new jobs, the unemployment rate is still very high i.e. around 6.5 percent. The lower-than-expected job growth is fueled by various factors including government hiring, weather, and Obamacare. Actually, similar to December, January had a lower-than expected increase in job opportunities since only 113,000 jobs were created. However, the rate of unemployment still reduced to 6.6 percent in this month despite of the growth in labor force. The current rate of unemployment is the lowest in U.S. since the 2008 recession because more people are leaving the labor force instead of finding jobs.

In 2012 the unemployment rate was at a high rate of 8.1%, according to Marilyn Geewax on the website The Two Way. Geewax also claims, the unemployment rate in 2016 lessened to 4.9%. Jobs around America are always changing depending on the economy.¨The Broken Basic Bargain¨ focuses on how the economy has both its highs and its lows just like jobs do in ¨Mike Rowe: Learning From Dirty Jobs¨.

As of February of 2016, “the unemployment rate in America was recorded at 4.9 percent, unchanged from the January rate and remaining at its lowest

Big and small businesses alike stagnated and declined without opportunities for new growth and investment, and individuals suffered as each lost his/her homes, savings, and livelihoods. The official US unemployment rate skyrocketed to a historic high since the 1980s and GDP decreased by almost 3%, the first time since World War II. The Obama Administration enacted expansionary fiscal policy in the form of the Stimulus Package, formally known as the American Recovery and Reinvestment Act of 2009 (ARRA), in reaction to the recession. The ARRA made it possible for the government to spend over 800 billion in infrastructure, tax cuts, and unemployment insurance, as well as other programs. The Fed lowered interest rates dramatically, and the stimulus package seemed to revive the US from what could have been a worse financial disaster than the Great Depression; however, the Obama Administration response to the Financial Crisis, although commendable, did not go far enough. Despite a steady decline in the US unemployment rate and increase in GDP, the ordinary American is still experiencing the dirty aftermath of the Great Recession. Nearly 10 years since the start of the great financial crisis, economists are still learning from the mistakes of the past and the US government must enact policies and regulations to prevent another collapse or near

Fiscal policy: Given the breadth and depth of this recession, it was clear that the Treasury and the entire Obama administration had to take bold actions. In fact, right at the beginning, they were committed to a fiscal stimulus policy package which would be “substantial” enough to pull the economy out of the recession. The final stimulus package signed into law in 2009, the American Recovery and Reinvestment Act, was totaled $787 billion including about one-third tax cuts and one-third aid for states and the unemployed. Of the rest, labor health and education investment got 8%, and infrastructure investment got about 7%. It also included a large amount of government money to

The 7 percent unemployment rate last month — down from its most recent peak of 10 percent in October 2009 — is the best reading since President Obama took office, providing one bright spot for a White House beleaguered on many other fronts. The unemployment rate was 7.3 percent in December 2008, the month before Mr. Obama was inaugurated.

Every time we feel the onset of a recession or the economy starts to slow down, the government looks to restore the economic growth through different stimulus plans. The recession of 2008 was one example. When the housing bubble burst it caused panic with quick financial fallout, “the government took immediate measure to stimulate the economy back to normal and to restore confidence in the economic market” (Mitchell).

The “Great Recession” is commonly used to explain the massive economic contraction that occurred in the United States during the fourth quarter of 2007. However, the actions of the United States spanned to other nations, leaving massive effect on the global economy. One nation that took on serious financial burden during this recession was the United Kingdom. This nation first faced the effects of the Great Recession beginning in the first quarter of 2008. Overall, the initial mass effects on the nation can be attributed to the nation’s reliance on the financial sector. In fact, after partially stabilizing in 2009, the country struggled with a double-dip recession between 2010-12, and continues to struggle with some of these effects.

However, even though UK spots a positive GDP annual growth rate since 2010, unemployment remained high. Please refer to Appendix F.