Critiquing the US Economy
Critiquing the US Economy
When observing today’s Economy, It is fairly easy to see that there is an immense problem nestled in the heart of it. You don’t have to be an Economist to see most of these issues, which include high unemployment rates and slow economic growth. With these results, one can’t help but wonder. “What is going on?” Well there are several factors that are affecting our current Economic state, including our inability to improve our unemployment rate. Such factors have not only affected our expectations of the very country we live in, but also affected things such as Consumer Income, Interest rates and Aggregate ...view middle of the document...
In addition to our slow Economic growth, there is also the issue of Corporations that are not using their profits to hire more workers. Studies show that in the 9 month window of recovery following a recession, large corporations have recovered nicely with a substantial amount of profit. However instead of creating more jobs, today, corporations are holding on to those profits and reinvesting in their own company. The end result is wealthier corporations with fewer jobs to offer (Sivy, 2012). Obstacles like these not only affect our economy, but also affect the expectations of the American people.
The US economy is stagnant and has been in a crippled economic state since 2005. Even though some people have found successes in a down economy, the economy at larges expectations of America have been defeated. A large percentage of the population is not spending money as they did in 2004. The outlooks of our government have all but come to a standstill. Some of the biggest factors that affect the moral of the American people are the inability to gain employment, people are not getting the same return on their money, and while there are a few jobs out there, the income levels have dropped significantly. All of these items have an impact on how each citizen views their country and in what way that same individual will admire his country. According to the Financial Express, 2,850 executives that represent full range regions, industries, and functional specialties-the expectation of the executives about the global economy have remained the same (Economic Expectations, 2010).
Some economist will argue that the economy has remained the same for the last few years, and if it were not for a steadfast government, the country would be in a depression so deep it would take 100 years to recover. However, there are some things the government has done and can do to boost expectations in the short run. The government padded the American economy every month with billions of dollars. Now that the country’s housing market has improved, tapering back the billions of dollars pumped into the country has begun.
Many of the American people’s overall prospects decreased because their county is printing money to pay the bills. Nonetheless, this went on for several years, and now it is time for the US to cut back slowly. Because this is a very fragile operation, cutting back to fast could catapult the country back into a recession. On the other hand, not cutting back at all makes the American people even more dependent upon the government. Some people would argue to keep pumping billions into the country, which is a classical model of a policy, but the Federal Chairman Ben Bernanke stated, “The Fed might begin reducing the scope of the program later this year-and wind it down completely around the middle of next year (Kumar N. 2013).
Consumer income in the United States has increased since the recession in 2008 but not by much. There has been an...