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 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
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.
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.…
