Current State Of The U.s. Economy - 1342 Words

Current State of the U.S. Economy A nation’s economy plays a vital role in how a nation operates. The United States economy faces a large variety of problems in this paper; we will focus on 4 major economic problems, unemployment, inequality, federal debt, and the financial/credit market. All four issues are interconnected in some way with deep social and economic implications. These issues were emphasized during the Great Recession that hit the U.S. economy in 2007.In the following paper, we will look at each of the four topics individually as well as look at how each plays a significant role in one another’s overall impact on the U.S. economy as well as individuals in the United States. The United States plays a crucial role in the world economy, meaning that every issue and difficulty faced the United States economy has implications far outside the U.S., understanding how these issues relate to one another sheds insight into just how connected every area of the economy actually is. Beginning with unemployment in the 2007-2009 recession, U.S. unemployment rates peaked at 10% as well as held 41 consecutive months at rates higher than eight percent (Lazear 1). The U.S. economy plummeted during this time; many attributed the shift to a large decrease in the number of employed workers. To be able to better understand the unemployment issue, we must first examine the form of unemployment faced by the U.S. economy. Many believe that the changes faced by the U.S. labor marketShow MoreRelated The Current State of the U.S. Economy Essay617 Words   |  3 PagesThe Current State of the U.S. Economy The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated â€Å"Too much of a good thing can be wonderful† and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming economy, instead of having an outsized tax cut, we shouldRead MoreEssay on Current Account Deficits1077 Words   |  5 PagesCarbaugh (2011) asks, Can the United States Continue to Run Current Account Deficits Indefinitely? (p. 361). Ultimately in the long term the answer is no, but the question could be rephrased to ask: (1) Does the United States unique position in the world economy allow the country to safely run persistent external deficits? and (2) can persistent U.S. deficits in the current and payments accounts be adjusted without bringing about economic recession or crisis? Japan, China, and Middle EasternRead MoreEssay on The United States Current Account Deficit1251 Words   |  6 Pages The largest and richest world economy belongs to the United States (â€Å"North America,† 2011). Interestingly, this same monstrous economy also holds the title for the largest current account deficit. The U.S. current account deficit is funded from net capital inflows from abroad and has continued to grow throughout the last two decades (Holman, 2001). Economists in the early part of this century theorized that this huge U.S. external deficit was sustainable because it would gradually correctRead MoreTrade Deficit1198 Words   |  5 PagesTo finance this trade deficit, the U.S. borrows from abroad. Also, the U.S. government is spending more than it takes in from taxes. The budget deficits widens the gap between the national income and national savings and increases the deficit in the current account by requiring more borrowing fro m abroad. The widening current deficit puts pressure on U.S. currency in the financial markets. As long as Americans are willing to buy cheap imported goods and the U.S. government has a budget deficitRead MoreThe Future Of Puerto Rico1312 Words   |  6 PagesCongress, the people of Puerto Rico voted in favor of statehood. However, with a current debt load of $70 billion, will statehood be granted. Literature listed suggests that granting statehood could possibly address Puerto Rico’s crushing debt, unemployment, and poverty. However, others argue that Puerto Rico’s island loyalty could have enormous implications for the future of the U.S. if Puerto Rico became the 51st state. Evidence suggests that the mounting debt has influenced residents of theRead MoreHow Corporations Should Be Taxed On The United States Economy1461 Words   |  6 PagesIn recent years, more than twenty major American companies have left the United States and moved overseas to take advantage of lower tax rates, taking with them jobs and investments (Allen, D). The recent surge of interest in United States corporate inversions has triggered calls for Congress to put an end to the practice. A corporate inversion is when an American company merges with a foreign business and moves the combined business’s headquarters to the foreign country. Inversions are a problemRead MoreIllegal Immigration Should Not Invest Or Enforce On Current Method Of Border Security Essay1579 Words   |  7 Pagesan unprecedented rate in the U.S. since the late 1990s. To absolve this matter, border security has been enforced throughout the entire country with the objective to reduce the entry of illegal immigrants across the border, wherein such acts to do so has been initiated such as the mass deportation of illegal immigrants, increasing security in national border and screening. This whole initiative has reduced the number of immigrants living in the U.S. However, current findings have proven that increasingRead MoreAmerican Economy Essay1499 Words   |  6 PagesThe American Economy is the most dominant economy in the world and has been one that many countries have tried to replicate. Let’s take a look at how the American Economy is so dominant and why. There are many important numbers to base an economy off of, however, we are only going to look into some of the most vital numbers that really illustrate why the United States is the world’s leading economy. These numbers consist of Gross Domestic Product (GDP), which is the total amount of goods and servicesRead MoreSupply and Demand Aggregate956 Words   |  4 PagesSupply and Demand Economic Critique The United States economy is determined by a number of factors, such as; gross domestic product (GDP), unemployment rates, consumer income, and interest rates. Everything the U.S. produces is measured by the GDP. When the GDP turns negative, the economy can enter a recession. If this negative GDP continues for years the country is considered in a depression. Supply and demand are the forces drive the U.S. economy. Supply includes employment and natural resourcesRead MoreEncouraging Economic Growth with the Fair Tax Act1728 Words   |  7 Pagesdebate about over the nation’s debt rages across Capitol Hill, our leaders seem unable to address the problem in a meaningful way. Most of them, however will agree that we do have a problem. The President’s 2010 Debt Commission reported that the United States tax code must be drastically reformed in order to avert a long term economic crisis. The report stated that: The tax code is rife with inefficiencies, loopholes, incentives, tax earmarks, and baffling complexity. We need to lower tax rates, broaden