Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Economics in the United States
Macroeconomics in the United States As the population increases, the job opportunities are not hence leading to excess labor and limited spaces for work. The government has to take action and provide for jobs in diverse sectors of the economy, to accommodate the unemployed.
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 employment and unemployment, positions of balance of payments, trends in Gross Domestic Product (GDP) and inflation. Macroeconomics is controlled by the monetary and fiscal policies, which are implemented to control economic factors. Levels of investment and consumption of products and services is also determined by fiscal and monetary policies.
Microeconomic situation in the United States
Figure 1.1: Trends (in percentage) of Unemployment in the U.S. -- 2012
2012
March
April
May
Changes from April to May
Total for 16 years and Above
8.2
8.1
8.2
0.1
Adults (Men)
7.6
7.5
7.8
0.3
Adults (Women)
7.4
7.4
7.4
0.0
Teenagers between 16-19 Years
25.0
24.9
24.6
-0.3
Whites
7.3
7.4
7.4
0.0
African-American
14.0
13.0
13.6
0.6
Total for 25 years and Over
6.8
6.8
6.9
0.1
Less than high school diplomas
12.6
12.5
13.0
0.5
High school certificate-no college
8.0
High competition rates with foreign countries, in industry and firms. This has caused inability in terms of financing the firms. The result is often winding up or liquidation. Closure of the firms and industries leads to job loss hence high unemployment rates.
Currently, the country is undergoing immense technological change which has caused automation in the industries and manufacturing firms. Most production facilities are automated and the manpower required is minimal. The human labor is, therefore, being replaced with mechanical equipments. The minimum wage value for employees is way below the value of other countries, leading to decisions of the citizens to remain unemployed.
Also, young people in the country are more enlightened than they were before, and prefer to better their education and professionalism, rather than work. This has increased, though with small margins, the rate of unemployment.
Inflation in the United States
The inflation rate in the United States is likely to be affected by the recession experienced in Europe. The growth rate of China which has also reduced will be an advantage for the U.S.…
References
Markham, J.W. (2002). A Financial History of the United States M.E. Sharpe: New York.
Fernando, A.C. (2011). Business Environment. India: Pearson Education.
Newport, P. (2011). United States. United States Country Monitor, 2011, p. 2-7.
U.S Department of Labor (2012, June 1). The Employment Situation. Retrieved June 5, 2012, from http://www.bls.gov/news.release/pdf/empsit.pdf
08% 2.42% 2.78% 2.57% 2.69% 2.69% 2.54% 2006 3.99% 3.60% 3.36% 3.55% 4.17% 4.32% 4.15% 3.82% 2.06% 1.31% 1.97% 2.54% 3.24% 2005 2.97% 3.01% 3.15% 3.51% 2.80% 2.53% 3.17% 3.64% 4.69% 4.35% 3.46% 3.42% 3.39% Trade deficit The United States trade balance has been showing deficit since the 1970s, but the rapid growth of trade deficit started in 1997. The highest record of trade deficit was marked last year, as deficit of
Macroeconomics The current macroeconomic situation of the United States is generally positive. The major indicators -- GDP growth, unemployment, inflation and interest rates are all trending in the right direction, indicating the sort of stable economic growth that it the goal of monetary and fiscal policymakers. The following graph illustrates the trends for the past ten years for GDP growth and the unemployment rate: What this shows is that the GDP contracted
economic issue prevailing in the United States is that of rapid fiscal and monetary stimulus and its inflation implications. Currently, due in part to prevailing market conditions, governments have embarked on a path to massive fiscal ease. Governments, including the United States, Japan, Europe, and China have all engaged in massive stimulus operations. These operations are designed to help build consumer confidence while also enhancing the overall appeal of
Global Economy Crisis (2008) for U.S. Economy The economic crisis that was recently witnessed around the world including the United States and the various efforts that were made by the various governments in order to bring some stability to their economies, have raised questions on the strengths of free-market system and what informs interventions by the state. This paper's objective is to put into perspective the debate on interventions by
Small Business Act of 1958 and Contribution to Small-Scale Businesses to the U.S. Economy Small-scale businesses have been accepted globally as instruments contributing to economic growth and development. Governments in many developing countries have adopted comprehensive efforts and policies aimed at improving the performance of small-scale businesses that have fallen short of expectations. Small-scale businesses face significant challenges that hinder their abilities to contribute to optimal economic growth and national
U.S. Macroeconomics The current macroeconomic situation in the U.S. is bleak. The country is over $17 trillion in debt. It has given the right to coin currency to the Federal Reserve, which prints money then loans it to the U.S. government, charging interest, a system which can only logically lead to more national debt. Insanely, this system has been in place for more than 100 years. Today it is worse than