StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Current Macroeconomic Situation in the US - Essay Example

Cite this document
Summary
Five years after this crisis, 63 percent of Americans feel that the economic system is no more secure than it was before the 2008 crash (OECD, 2013). Large percentage is of opinion…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
Current Macroeconomic Situation in the US
Read Text Preview

Extract of sample "Current Macroeconomic Situation in the US"

Current Macroeconomic Situation in the US Affiliation Current Macroeconomic Situation in the US U.S is the heading economy of the globe but has had a recession since the 2008 financial crisis. Five years after this crisis, 63 percent of Americans feel that the economic system is no more secure than it was before the 2008 crash (OECD, 2013). Large percentage is of opinion that jobs and household incomes are yet to recover from the recession. And when asked about the effect of government efforts to handle the situation, majority believe the economic policies have just benefited corporations, the rich, and large banks than small businesses, the poor or middle-class (OECD,2013).

The government has pumped money into the economy to boost spending which in turn boosts the aggregate demand by increases it. This move aimed at providing citizens with more money to spend. It has also increased its spending to hike confidence about growth. The rescue of insurers and banks also helped to build confidence to public and businesses in the economy (Moore, 2014). On monetary front, FOMC has undertaken buying government securities in an attempt to reduce interest rates and encourage investing.

This increases the level of yield and betters confidence level. The government has tried its best to resurrect the U.S economy from the effects of 2008 crisis (Moore, 2014). According to Bureau of Economic Analysis, the GDP increased at an annual rate of 2.6% by fourth quarter of 2013 and in third quarter, it had increased by 4.1% (Pew Research, 2013). Real disposable personal income grew by 0.3 percent in February 2014 with a similar percentage increase recorded in January. As of September 2013, U.

S GDP was $15.7trillion-2.2 growth in 2012; Unemployment was at 7.2%, Inflation at 2.1%, and public debt at 106% of GDP (Pew Research, 2014). The GDP has increased overtime as the employment and inflation rates have declined. Unemployment has come down slowly but steadily but creation of more than 300,000 jobs per month is what is required to bring it down with the desired speed (Pew Research, 2014). To ensure a steady growth in U.S economy, political leaders need to ensure that there is no interruption in nominal functioning of government (Moore, 2014).

Changes are needed in budgetary procedures to curb such disruptions as government shutdown by abolition of nominal debt ceiling, to allow automatic authorization of resolutions passed by congress and borrowing implied by budgets. To give economic confidence a chance of entering positive territory, positive economic trends must continue. Government should increase money circulation in the economy to increase aggregate demand and reduce interest rates to encourage more investments. Doing so sees a decline in unemployment and GDP growth.

Moreover, most importantly, the federal government needs to control U.S debt and avoid events that damage morale like last year’s shutdown.ReferencesMoore, B. (2014, January 14). U.S. Economic Confidence Steady So Far in 2014. Gallup Economy, p. 1. OECD. (2013). General Assessment Of The Current Economic Situation. OECD Economic Outlook, 2, 1-90. Pew Research. (2013, september 12). Five Years after Market Crash, U.S. Economy Seen as ‘No More Secure’. Pew Research Centre For The People & The Press, pp. 1,2.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Current Macroeconomic Situation in the US Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Current Macroeconomic Situation in the US Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/macro-microeconomics/1638105-current-macroeconomic-situation-in-the-us
(Current Macroeconomic Situation in the US Essay Example | Topics and Well Written Essays - 500 Words)
Current Macroeconomic Situation in the US Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/macro-microeconomics/1638105-current-macroeconomic-situation-in-the-us.
“Current Macroeconomic Situation in the US Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1638105-current-macroeconomic-situation-in-the-us.
  • Cited: 0 times

CHECK THESE SAMPLES OF Current Macroeconomic Situation in the US

The Exchange Rates Sphere of the Macroeconomic Arena

In the paper “The Exchange Rates Sphere of the macroeconomic Arena” the author discusses one of the more tangible issues of macroeconomics i.... .... issues that directly affect people and do so in a really short period of time and a basic understanding of this area is deemed to understand macroeconomics....
4 Pages (1000 words) Assignment

UK Economy Emerges from Recession

The discussion on the double dip recession is heating as many economists feel that us economy specifically may face the double dip recession if timely corrective measures are not taken.... The recession also results What is critical however is the assumption that governments, in this type of situation, tend to adapt expansionary macroeconomic policies in order to stimulate growth and increase in employment level.... (Krugman and Wells) The current economic situation is quite alarming due to the fact that despite the extensive support from the government, economy is not recovering....
4 Pages (1000 words) Research Paper

What is current macroeconomic situation in the U.S

These attempts suggest that the us government undertook fiscal expansion in order to stimulate the economy and provide the necessary launching pad for the economy to pick up.... The current macroeconomic condition of the country started worsening when banks suffered due to subprime mortgage crisis.... However, the economic downturn in… This paper will therefore discuss the current macroeconomic condition of US and will provide a description about the key economic variables such Introduction Economic recession which started during the late 2007 has prolonged itself and is still hurting the economy of US....
2 Pages (500 words) Essay

Current Macroeconomic Situation in the United States

The real GDP augmented at a current macroeconomic situation in the United s current macroeconomic situation in the United s Gross domestic productis the total monetary value of services and goods produced within the country's borders, within a specified time usually one year.... om/2012/07/27/news/economy/us-gdp/index.... Monetary Policy and the Federal Reserve: current Policy and Conditions....
2 Pages (500 words) Essay

Current macroeconomic situation in the U.S

uch performances may be good enough to improve results for a quarter, however if there are solid, sustainable and improving growth rate is desired in the us economy, major improvement in macroeconomic policies are needed otherwise, for the rest of the year, more volatility in the macroeconomic performance is expected.... Moreover there is a widespread agreement on the notion that, even if the economy gets on a current macroeconomic situation of the US At present, high unemployment and slow economic growth are the predominant features of the US economy....
2 Pages (500 words) Essay

Macroeconomic Situation in the US

hellip; This is because such aspects as unemployment rates, inflation, fiscal and money policies directly have an impact on the economy hence influence its macroeconomic situation in the U.... Task: macroeconomic situation in the U.... In consideration of the present macroeconomic situation in the U.... Considering the present macroeconomic situation in the U.... economy, especially in regards to its current macroeconomic situation....
2 Pages (500 words) Essay

Demand and Supply Side Policies

Economic growth implies an increase in the real Gross Domestic Product (GDP) of the country.... Basically, policies that can be… In this essay, I am going to discuss separately how the supply side policies and demand side policies can help to improve on the economy of the Britain.... The demand side Conversely, the supply side policies are key in the determination of the long term growth of the UK's productivity....
5 Pages (1250 words) Coursework

Current Macroeconomic Situation

Discussion The “current macroeconomic situation” in the us is identified to be quite concerned about different significant aspects that include unemployment, Gross Domestic Product (GDP) growth and household consumption among others.... With regard to determining expansionary fiscal policy tools, it has been noted that the aspect of household consumption has continued to be one of the critical concerns in the us by a greater degree.... This is owing to the reason that the price of gasoline and the disposable personal income of every individual in the us are extensively rising....
2 Pages (500 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us