Current State Of The Us Economy Essay

The Current State of the U.S. Economy Essay

617 Words3 Pages

The Current State of the U.S. Economy

The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated “Too much of a good thing can be wonderful” and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming economy, instead of having an outsized tax cut, we should use the surplus to further pay down the national debt. A tax cut, though most Americans would favor it initially, would prove counter productive. Cutting taxes would over stimulate an already raging economy, and enhance the possibilities of an…show more content…

The federal reserve has raised interest rates five times in less then twelve months, and the pervious raises are just barely beginning to take effect. The previous raises averaged around a quarter percentage point, and since these raises failed to slow the economy, Greenspan, unable to take anymore chances doubled the previous with a promise of more to come. The interest rates are expected to reach 7.0% by June, the most severally effected by these constant raises are shareholders. Because of these immediate effects market economists are largely against the interest rate hikes. Their position is that the average inflation rate over the past three years has been at around 2% close to the markets expected inflation rate of 1.9%. The economy is on a sixteen year run, continually moving forward. The historical data is there however; the consumer price index was at 1.6% over the past twelve months and the March year over year rate was at 3.7% The market economists do not stop there due to the vast improvements in productivity, largely due to increased technology and the internet, some market economists argue that Greenspan should leave the economy as is. Ideally the growth rate of the economy should be set by the growth rate of the labor force and productivity, and if the two were similar, inflation would not be a factor. The economy

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The Current State of the United States Economy Essay

1500 Words6 Pages

The news mediums, television, radio, print, or social media give information 24-hours a day regarding the economy. Individuals are not so sure about the reports issued on almost an hourly basis that are stating the economy of United States is improving. Many Americans are still without jobs, and do not believe their income can continue to support their families. The cost of purchasing a home is going up in many areas across the country, which is good for the market, but can be bad for the first time homebuyer. Unemployment, expectations, consumer income, interest rates are economic factors that influence individuals behavior and the United States fiscal policy.
The following gives examples of the aforementioned factors current…show more content…

The news mediums, television, radio, print, or social media give information 24-hours a day regarding the economy. Individuals are not so sure about the reports issued on almost an hourly basis that are stating the economy of United States is improving. Many Americans are still without jobs, and do not believe their income can continue to support their families. The cost of purchasing a home is going up in many areas across the country, which is good for the market, but can be bad for the first time homebuyer. Unemployment, expectations, consumer income, interest rates are economic factors that influence individuals behavior and the United States fiscal policy.
The following gives examples of the aforementioned factors current climates. In addition, the summary attempts to identify and evaluate the United States current fiscal policy, demand and supply, and Keynesian and Classical model perspectives so that one has a better understanding of the current state of the United States economy.
Unemployment
During the last year, there has been a steady decline in the unemployment rate. In November 2013, the United States reported a 7% unemployment rate, down from 8.1% in 2012. We can contribute the job creation to the following industries, transportation and warehousing, health care, and manufacturing (United States Department of Labor, 2013). The fastest growing states for an increase in jobs are California, Florida, New Jersey, North Carolina, South Carolina and West

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