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U.S. Economy
The May 2007 economy presented a rosy picture: the lowest unemployment rate of the Bush Administration 4.4% (Bureau of Labor Statistics.gov. 2012. PP. 1), the peak of housing values, strong GDP growth of 3.6% (Trading Economics.com. 2012. PP. 1), a stable inflation rate of 2.2% (Trading Economics.com. 2012. PP. 1), and a normalized non-emergency FED Funds of 5.25% (Moneycafe.com. 2012. PP. 1). Yet, the collapse was imminent as the "Great Recession" began in the fourth quarter of 2007, decimating the economy and bringing the global financial system to a grinding halt. Now five years later the economy is regaining its footing in a ponderous yet upward trajectory which began in the second quarter of 2009. An espy of May 2012 presents a dramatically different story than of 2007: unemployment stands at 8.1% (Bureau of Labor Statistics.gov. 2012. PP. 1), housing values have plummeted; "Americans overall have lost almost $7 trillion in housing wealth -- more than half of the nation's total home equity, according to the Federal Reserve" (U.S. News.com. January 24, 2012. PP. 1), GDP growth is lumbering at two percent (Trading Economics.com. 2012. PP. 1), and the FED has kept the accommodative spigots open since 2009 with a target funds rate of 0-.25% (Moneycafe.com. 2012. PP. 1). About the only similarity in the pictures is the inflation rate which is holding...
2012. PP. 1).
Policy Measures
The intervening five years have seen fiscal and monetary policy measures which are unparalleled since the Great Depression. Massive Keynesian stimulus: 814 billion, auto bailouts, TARP, Cash for Clunkers, home refinancing modification programs, and short-term targeted tax cuts (payroll). As for the FED the near zero exigent rates are now promised into late 2014, and the central bank has provided massive liquidity injections in the form of Quantitative Easing I, II, and Operation Twist (1960 Redux). This confluence of fiscal and monetary measures has given the economy a heartbeat, but has not produced the massive surge in activity which has been the historical norm since World War II after deep recessions.
The nearby chart compares rates of quarterly growth during the Reagan and Obama economic recoveries. The comparison is apt because both recoveries followed deep recessions in which the jobless rate reached more than 10%. Once the Reagan recovery got cooking, in 1983, growth stayed above 5% for 18 months and never fell below 3.3% for 13 consecutive quarters. In the Obama recovery, growth has never exceeded 4% in any quarter and fell off markedly in mid-2010 through the third quarter of 2011. For the first nine months of 2011, growth averaged less than 1.2%.…
One of the noteworthy aspects of the U.S. economy is that consumer spending
"accounts for 70% of economic activity" (Crutsinger, M. May 15, 2012. PP. 1). Business is on a never ending quest to create products, services, and pricing which will maximize revenue and increase profit. Price discrimination and segmentation are common in the marketplace (airline tickets as one of a plethora of examples); consumers may respond through indifference or anger towards the company, but are in the preponderance of economic activities likely to choose based on: perceived value, availability, rewards, or pricing options. Business can choose to discount products or services to entice certain groups: new customers, income sensitive customers, or competitor's customers.
The crux of the question on discounts for certain customers rather than others is really one of questioning the role government in the process. The government already chooses certain customers for assistance based on income, unemployment, opportunity, or other criterion. Food stamps have become plentiful over the last five years, a sign of a soft economy and one of an expanded government role. The qualifications are income-based which has struck many taxpayers as unfair because they are subsidizing a segment of the population. So too with unemployment benefits which in some cases have been
Dobb's support of stringent immigration reforms however gains him points with the far right of the Republican Party. Lou Dobbs is best known however for this crusade to save the middle class of America by fighting outsourcing and the reduction in wages of American workers. Making American Manufacturing Lean: A Perspective Looking first at the progression of outsourcing from low-skill and low wage jobs to intermediate and finally high-skill jobs including
U.S. Economy Evaluating the current state of the United States economy Although many are of the opinion that the recession that the globe was forced into in 2008 is finally uplifting and signs of economic revival can be witnessed. The resulting high levels of debt and unemployment from the recession had dragged many countries, especially the United States in to a state of economic turmoil. In order to reverse the effect
Immigration contributes to U.S. Economy How immigration contributes to U.S. economy Popular Press Giovanni Peri 30, August, 2010 The Effect of Immigrants on U.S. Employment and Productivity The article by Peri narrates the effects of immigration over the total population of the country. He says that the statistical analysis proved that the economy expanded and became more productive after the immigration and the investment also went up. He narrates another opinion that the foreign born U.S.
U.S. ECONOMIC PERFORMANCES IN THE PAST 5 YEARS U.S Economic Performance in the past 5 years Major indicator of healthy state of an economy is the real Gross Domestic Product (GDP) growth rate. The GDP growth rate reveals the performances of an economy. United States is one of the richest country in the world and "has the largest gross domestic product (GDP) in the world." (Jabir, 2009 P. 3171). The country total
U.S. Macro economy economy which was considered to be the world's largest has still not been able to recover completely from the financial crisis and resulting recession that hit in 2008. At the national level, spending increase to more than 25% of GDP in 2010, later in 2011 gross public debt exceeded 100% of GDP. The process of recovery for U.S. economy in the first quarter turned out to be weaker
Since 1970, the economic growth in U.S. had increased in real terms at a rate of 3.16% per annum, up to 2001, when the American economy registered a slow down period and the economic growth amounted 1.7%. Since 2003, the growth rate averaged 4.62% per annum. Currently, the economic growth is heavily influenced by fiscal relaxation policy that led to increased investments and economic growth level. The average return