Economy
The current economic situation in USA is that it is trying to get out of the recession that started in 2008-2009. The biggest challenge has been the high rate of unemployment that still stands at 8.6%. Inflation is not such a worry, as it remains low at around 2%. GDP is also showing some signs of revival. In 2012, the quarterly growth rates were 2%, 1.3%, 3.2% and -0.1%. The decline in Q4 is attributable to slashing of government spending as part of Federal military spending. The overall rates stands at 2.2%, higher than 1.8% for 2011, but marginally lower than 2.4% for 2010. In this sense the economy is recovering, albeit slowly.
Behind this recovery is a series of monetary and fiscal policy measures that has been undertaken since 2009. The FED and FOMC have kept rate of interest near zero, along with a low inflation rate that is below 2%. The FED has also increased money supply through its Quantitative Easing programs continuously. On the fiscal side, government increased its spending continuously till the fiscal deficit reached record highs in 2010. This partially explains a higher inflation rate as well as a higher GDP rate for that year. Such fiscal programs include
A package worth $158 billion that involved tax cuts signed by President George W. Bush in early 2008;…
Sample Source(s) Used
References
GDP Current Statistics, accessed on 11 April 2013, available at http://useconomy.about.com/od/economicindicators/a/GDP-statistics.htm
GDP, accessed on 11 April 2013, available at http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1#reqid=9&step=3&isuri=1&910=X&911=0&903=1&904=2010&905=2012&906=A
Current U.S. Inflation Rates: 2002-2013, accessed on 11 April 2013, available at http://www.usinflationcalculator.com/inflation/current-inflation-rates/
Related Documents
Study Document
Economic Situation Looking at the Economy From
Economic Situation Looking at the economy from a macroeconomic viewpoint means looking at a more broad approach to individual economic factors, weighing those factors, and making a determination as to whether the economy is stable and improving for the populace. Sustainable growth is one of the goals of economic development, and while there are peaks and valleys, the overall level and growth filters down to many factors. A booming economy, for
Study Document
Economic Situation What "Current Macroeconomic Situation" U.S.
Economic Situation What "current macroeconomic situation" U.S. (e.g. U.S. economy concerned unemployment, inflation, recession,)? What fiscal policies monetary policies time? Key concepts include paper -- data trends unemployment, inflation, GDP growth, expansionary fiscal policy tools, FOMC, easy money policy tools terms class. What is the current macroeconomic situation in the U.S. The United States is no longer mired in a full-blown recession as it was in 2008, but the process of economic
Study Document
Economic Situation U.S. Compared 5 Years Ago.
economic situation U.S. compared (5) years ago. Include interest rates, inflation, unemployment analysis. 2.Propose (2) strategies federal government implement encourage people spend money order create employment opportunities. Q1.Analyze the current economic situation in the U.S. As compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis. The unemployment rate in January 2012 was 8.3%. The relative improvement in the economy has caused many to pressure Fed
Study Document
US As an International Peace-Keeping Force
U.S. Role as 'Policemen of the World' Thesis and Outline Draft Introduction and Thesis currently holds the most important and influential role in international politics and represents a decisive player in all recent international conflicts. This role takes the form of political and military interventions, international and bilateral engagements as well as multilateral brokerage of peace talks. The basic principles of such an approach are the fostering of peaceful, democratic, and secure international
Study Document
United States Macroeconomic Policy Most
With a lower interest rate, that incentive no longer exists and this is usually an instrument by which private entities can be driven out of saving and into investing into new business on the market. Obviously, such an action usually creates the appropriate momentum for economic development, creating jobs, increasing governmental revenues through revenues from taxation and helping the country out of the economic recession. In terms of fiscal policies, the
Study Document
Economics in the United States Macroeconomics in
Economics in the United States Macroeconomics in the United States Macroeconomics deals with the general economic systems, which have a larger scope compared to individuals and markets. Essentially, microeconomics is mainly used in the determination and forecast of a country's national income. This is done by analyzing the factors of the economy that represent trends and patterns and in most cases influence each other. Economic factors affecting macroeconomics include the rates of