A huge number of people belonging to the national workforce were made redundant, businesses collapsed in the country and high living costs made it difficult for the people of America to be able to sustain on lower incomes.
The more the technology becomes advanced, the higher the automation of businesses occurs and thus, more people are rendered jobless. The public was been given loans on lower interest rates for the acquisition of mortgage properties, but these rates would bubble up step-by-step so that repayments could be made easily.
As unemployment falls gradually, the aggregate demand in the United States has began to rise Evaluate the current state of the economy essay as more people have jobs now and are earning enough disposable income to spend on the luxury items as well.
The interest rate continues to be at 0. Additionally, the government should increase spending on public welfare programs such as healthcare and unemployed compensation benefits.
However, although the economy has improved the financial crisis, it cannot be said that it has made complete recovery and is booming in the current time. The demographic factor also is key contributor to the unemployment rate. From tothe unemployment rate shot up dramatically from 4.
In order to reverse the effect of such factors, the United States government has implemented strategic monetary and fiscal policies.
In this manner, equality of wealth distribution will increase, allowing the poor members of the public to be able to improve their living standards.
The economic cycle functions positively in this manner and slowly the economic conditions begin to improve. An estimated number ofjobs must be created every month to bring down the unemployment rate to the set targets.
As more people carry out such spending, the aggregate demand and supply for goods increases and the economic conditions improve gradually. 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.
This cumulative decrease in demand affects the economy in such a way that the production of goods other than everyday necessities decreases as demand is not there in the market.
Such dramatic increases led to a negative impact on the general public as people found it difficult to acquire loans as high interest rates deterred them from doing so. However, the tax cutting should only target those members of the American public who fall in the middle class or lower level of income earners.
One of the main reasons that led to the financial crisis in was the prevailing policies regarding to the interest rates.
Unemployment The foremost economic factor that would be taken into consideration to evaluate the current state of the United States economy is the unemployment factor.
This will force them to control the spending and thus result in a decrease of their demand. As the level of education increases through the country, the labor force decreases and people target jobs according to their qualifications.
Sincethe interest rates began to increase steadily and reached at the point of around 5. As a person would be unemployed, he or she would have access to a lower disposable income.
This has the same impact on the employment rate in the United States. The evidence that these policies have benefitted the country and its population with complete efficiency needs to be analyzed with the help of various economic factors.
Same has been the case in the United States. Due to its nature to be able to perform human tasks with more speed, care and precision, technology and machines continue to impact the employment of the working force.
This increases the number of educated and qualified people after fewer active and available jobs. Interest Rates and Consumer Income Another economic factor that would be used to evaluate the current state of the United States economy would be the interest rates in the country.
Thus, the spending power decreased and so did it affect the overall demand and impacted the economy negatively. The biggest problem the financial crisis brought for the people was the rise in debt for them during times they found it difficult to pay it off.
This also results in the rise of the consumer income as businesses begin to earn more and therefore they hire more people to achieve higher production.
According to statistics, from tothe unemployment rate had been decreasing steadily and arrived to its lowest point of 4. Technology is one of the factors that have an impact on the unemployment rate.United States - Quarterly Data; Data Series Back Data 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr ; Employment Cost Index ().
Describe the current state of the following economic factors: Imagine that your Learning Team is a group of international reporters. You have been tasked with describing and critiquing the current state of.
State of the US Economy. Print Reference this. Disclaimer: to dependence of other countries from the United States in science and technology and determines foreign policy of the state (Block, ). many problems associated with the exit from the current acute crisis in the U.S.
economy still remain, and the economy continues to. Excerpt from Essay: 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 is finally uplifting and signs of economic revival can be witnessed.
The current government policies have not been effective and when looking at it from this classical perspective, it might be necessary for the government to step back and let the mark equilibrate itself.
Evaluate the Current State of the Economy Essay Option 1, Part 1 – Evaluate the Current State of the Economy To analyze the current state of the economy the group will assess the following areas.Download