...The US Economy Clark University The US Economy Like any economy, the United States experiences growth, contraction, and periods of increased volatility throughout any given time period. This analysis seeks to provide a concise report of the current state of the US economy based on the latest data metrics provided in the reports published by the Wall Street Journal. The following information delves into the quantitative and qualitative aspects of the economy’s growth and employment, consumer activity, inflation, housing construction and sales, and international trade. The first metric to be examined is more than likely the one that the average citizen thinks of when thinking about the current state of the economy: Unemployment. It affects virtually every metric from the Gross Domestic Product (GDP) to the Consumer Price Index (CPI). The long term figures by the Bureau of Labor Statistics noted in Appendix A display that the unemployment rate has been on the decline for a significant period of time, and furthermore, is expected to close the 2015 year at a rate of 5%, with the potential to plummet further to 4.6%. The decline appears significant, especially considering the Labor Force experienced growth. Secondly, the GDP should be taken into consideration, as it’s one of the most useful statistics when looking at the health of an economy. The GDP for October is 18 trillion dollars, down from 18.01 trillion in September. As explained in the textbook...
Words: 711 - Pages: 3
...The U.S. Economy In 2008, the state of the economy took a major hit. The housing market tanked, consumer spending was down, and the banking system virtually shut down. But after five years of struggling against the tides, and despite the occasional bumps in the road, the US economy is making a strong come back. Combined with the incredible fortitude of the American people and cyclical recovery forces, the economic outlook is stronger than its been in over a decade. A major contributing factor the economic downturn was the housing market. During peak economic activity, single family housing averaged 1.5 million before the housing bubble burst. After the burst, housing began to plunge at an alarming rate of approximately 500,000 for nearly three years. New home sales declined a third of what they were before the collapse, a fate not seen since the 1930’s. But now, the housing market has done a complete turn around and is in full upswing. The number of new home sales has increased and has rebound to its original average of about 2 million nationwide. Some foreclosure units are still in inventory, but that number continues to fall. Demand is also playing a significant role as the U.S. population will continue to increase some 8% over the next decade. This means residential investments will increase by 15% to 20% annually over several years causing a significant ripple affect over the entire economy. (Altman, 2013) During time of hardship, the American people were spending very...
Words: 856 - Pages: 4
...Worth published quizzes Chapter Supply and demand Stone CoreEconomics Chapter 3 completed | Top of Form 1. (T/F) The major benefit of markets is that they bring sellers and buyers together to transact business. a. True b. False 2. (T/F) The law of demand states that demand increases (demand curves shift to the right) when income increases. a. True b. False 3. (T/F) All markets have roughly the same number of buyers and sellers. a. True b. False 4. (T/F) Demand curves always have positive slopes reflecting the law of demand. a. True b. False 5. Which of the following is not a determinant of demand for orange juice? a. consumer after-tax income b. price of tomato juice c. medical research on the benefits of orange juice d. agricultural subsides (government payments) to farmers to grow more oranges! 6. Which of the following will cause an increase in the demand for steel? a. Price of automobile tires increases because of a shortage of rubber from Malaysia. b. Concrete steel reinforcing rods are replaced by aluminum to reduce rust along the Atlantic seaboard. c. Gasoline prices are reduced by 50% because OPEC countries break into a quarrel and all countries expand production. d. McDonald's increases its production of hamburgers and fries to meet demand when a medical study concludes that fries are healthy alternatives to vegetables. 7. Which of the following is not a determinant of demand for MP3 players? a. the price of television...
Words: 1276 - Pages: 6
...Complexities of the U.S. Financial System Professor Crawford Finance 100 10/28/2014 Complexities in the US Financial System The Federal Reserve System is the most powerful component of the US Economy. The Federal Reserve is made up of four components. There is a seven member Board of Governors that direct monetary policy. A 12 member Federal Open Market Committee (FMOC) that sets the target for the federal funds rate which also guides the Federal Interest Rate. 12 regional banks that supervise commercial banks in their respective regions, these regional banks also implement monetary policy for the commercial banks to follow. The FED also has a designated Economist who provide information and reports to congress. The Federal Reserve’s primary function is to control inflation without triggering a recession. The FED’s work together with the Treasury Department to avoid or counter any global financial crisis. The FED has been diligent in the past 20 years and more effective in the past decade to assist in the rebound of the economy crashing in the mid 2000’s. “The financial crisis of 2008 led to the worst recession since the Great Depression of 1929. This was despite aggressive efforts by the Federal Reserve and Treasury Department to prevent the U.S. banking system from collapsing. As a result of the recession, housing prices fell 31.8% (What Was the 2008 Financial Crisis? Causes, Costs and Whether It Could Happen Again, by Kimberly Amendeo) more than...
Words: 563 - Pages: 3
...1. In 4-5 paragraphs, discuss the history of the US economy including productivity, growth, markets and government regulations. 2. In 2-3 paragraphs explain GDP: what items are included & excluded and why intermediate goods and services are usually not included directly in GDP. 3. Rank, i.e. list, the following in order of increasing (from negative to positive) cross – price elasticity of demand with coffee. Explain your reasoning. - Bleach - Tea - Cream - Cola 4. In 3-4 paragraphs, provide examples and discuss how the “Rules of the Game” impact the US economic growth and productivity. What current US economic Rules of the Game are impacting economic growth today? 5. In 2-3 paragraphs, discuss how markets coordinate the independent decisions of buyers and sellers? • In 4-5 paragraphs, discuss the history of the US economy including productivity, growth, markets and government regulations. The US economy has evolved significantly over the two hundred-plus years of its existence. In the early years, most productivity was similar to the rest of the world. The country was nearly all agriculture and growth was dependent upon gaining more land. As the years went on, the country was growing quickly. Agriculture was still a large part of the economy, but industry was beginning to take a much larger share of production. The country was rich in resources like Coal and iron ore, and improvements in physical capital made farming easier and more productive...
Words: 1497 - Pages: 6
...Paul Garrido Prof. Bayes September 30, 2014 ! Improving US Economy The United States economy relies heavily on world trade. Natural gas and oil companies, and the importing and exporting of their goods, play a major role in the fluctuation of the economy. However, regulating imports and exports is easier said than done. Opinions differ between those at the top of these companies and also between other influential members of our government, including the President of the United States. President Obama believes that we can improve our economy with the increase of fuel exports. Andrew Liveris, the chief executive of Dow Chemical (a company that depends on natural gas) believes otherwise. He believes that if we export our natural gasses, the economy will be impacted negatively. Both President Obama and Andrew Liveris share a common goal; the bettering of the economy of the United States. The United States has been using energy to reshape the economy. During his presidency, President Obama has driven the value of U.S. fuel exports in a positive direction. Obama hopes to double the fuel exports from the United States by 2015. He believes that fuel exports will help create middle-class jobs in the manufacturing industry. This boost in middle-class jobs, along with money earned from exporting these goods, can potentially be the stepping stone to improving the economy. GARRIDO 1 ! Andrew Liveris has a different outlook then Obama. He views the exporting...
Words: 407 - Pages: 2
...George Marrero Poli Sci 101-51 April 6, 2015 During the later half of the 20th century U.S economy was the most powerful economy in the world, they set the rules for rest of the world. They established multinational corporations all over the world, which was indeed the heart of world economy. (Davis, 2009) When the U.S economy was rising, all the other countries’ economies were also growing, at the same time when their economy went down it affected almost all the other importing and exporting countries in the world because of the recent crises which was named as “GLOBAL FINANCIAL CRISIS”. This was meant to be the biggest crises after “THE GREAT DEPRESSION 1930” (Cambridge Journal of Economics, 2009). The crises have already recorded loss of over $150 billion and large numbers of banking institutions have declared bankruptcy or being sold. (Kregel, 2008) One among the banks filed for bankruptcy was Lehman Brothers, which was Fourth largest investment bank in U.S. (BBC, 2009). Therefore it is important to identify causes of current financial crises and resolution measures. Secondly, UK government should take effective steps in order to reduce danger of further crises. (Turner, 2009) During the later part of the 20th century, that is 1973, Daniel bell published a book titled “THE COMING OF POST INDUSTRIAL SOCIETY”. The book was about forecasting to find the changes in economy and society in the United States. One of the most visible changes according to him was the work force...
Words: 1757 - Pages: 8
...This essay shall discuss the most current U.S. GDP figures and the current state of the economy. It will also discuss how the current state of the economy will or will not impact my organizational profitability, using the Timken Company. The most current figures available for GDP are in reference to 2014. GDP is the measure of all final goods and services made in a year, and made in the United States. This does include foreign country operations that are located in the U.S., however it excludes U.S. plants in foreign countries. The GDP numbers are important because it represents how well the economy is doing. An economy doing poorly will have lower profits for businesses, which effects stock price. This is significant to investors that look at GDP growth, and if it is negative it could suggest that the economy is in a recession. The real GDP is the most looked at figure in discussion with the economy. Real GDP is comparing one year to the other taking out the effects of inflation calculated by the Bureau of Economic Analysis (BEA). According to the BEA, the U.S. GDP increased 2.4 percent in 2014 from the figures found in 2013. The results I will also look at is the latest fourth quarter of 2014, because GDP is reported quarterly as well. The GDP is a very in depth and comprehensive report, therefore I will concentrate on the most important numbers that the report contains. The extras that the report contains breaks down personal consumption expenditures, gross...
Words: 1083 - Pages: 5
...NAMASTHE SOLAR Introduction Namasté Solar is a leading Colorado solar installer in the residential market. Colorado’s favorable market conditions attract new competitors, putting pressures on price and market share. Unusual management structure and values systems, and public incentive structures complicate a pending decision to grow the residential market or develop a commercial installation business. (http://leeds.colorado.edu/casestudy/169#overview) The Pros and Cons of Namaste’s Three Options Path A: to “sell the whole kit and caboodle” Advantages: * By more invested capital the company can grow much faster than the market. The invested capital can be used to acquire more resources and for more research and development projects which ultimately might increase the company’s profit. * Very high expansion is possible because the company can hire more people which enable them to reach more customers and more installations. By this process the company’s reputation can be kept high and increase the profitability. * The disadvantages in decision making strategy which was originally followed by the company can be eliminated. * The stack holders and stock holders can receive a huge return for their invested capital. * The investment risk of the employers can also be reduced. * Last but not the least, employers feeling of tired and overworked can be reduced to a great extent. Disadvantages * The company’s core values like Care for the Earth, Care...
Words: 1359 - Pages: 6
...its trade deficit. At current exchange rates, the strength of the U.S. economy, combined with slow growth in demand in many other parts of the world, will lead to further widening of the U.S. trade deficit. How long can the trade deficit continue on that trajectory without disrupting the U.S. economy or the world economy? Absent structural reforms in the United States and abroad, a large devaluation of the dollar, or significant changes in the business cycle, both the trade and the current account deficits will continue to widen until they become unsustainable, perhaps two or three years out. Changing the trajectory will be difficult. The U.S. trade deficit is now so large that even if world economic growth were to pick up and boost U.S. exports, U.S. imports would have to slow dramatically for the gap to narrow. To shrink the trade deficit significantly, say, over a two-year period, exports would have to grow twice as fast as they did in the 1990s, when growth averaged 7.5 percent a year, and the growth rate of imports would have to be halved, from 11 percent to 51/2 percent a year. Moreover, following twenty years as a net recipient of capital inflows, the United States will soon be confronted with much larger service payments. At some point, either the United States' negative net international investment position and the associated servicing costs will become too great a burden on the U.S. economy or, more likely, global investors will decide that U.S. assets account...
Words: 2443 - Pages: 10
...The Love-Hate Relationship between the U.S. Healthcare Industry and the U.S. Economy The healthcare industry plays an important part in the economy of the United States. The sustained increase and high level of spending on health care has been the subject of discussion and scrutiny for several decades. The enactment of the Patient Protection and Affordable Care Act of 2010 (ACA) was hardly the first fiscal policy for healthcare in the history of the economy. There is a long list of fiscal policy attempts from predecessors such as Franklin Roosevelt, Harry Truman, Richard Nixon and most recently Bill Clinton (Sparer, p462). In 1933, Franklin D. Roosevelt drafted amended provisions to his pending Social Security legislation to include publicly funded health care programs but ultimately removed the provisions due to opposition by the American Medical Association (Coombs, p5). Following the Second World War, President Harry Truman called for universal health care as a part of his Fair Deal in 1949 but strong opposition stopped that part of the Fair Deal (Peon, p161-168). On July 30, 1965 President Lyndon B. Johnson signed into law the legislation establishing the Medicare and Medicaid program, social insurance programs administered by the United Stated government providing health insurance coverage to people who are either 65 or meet other special criteria for need (Roemer, p845). In October 1972, President Richard Nixon signed the Social Security Administration Amendments...
Words: 3827 - Pages: 16
...With the recent government shutdown and the fiscal cliff debate over, many Americans are stepping back and asking “what is the current state of the economy?” Although the nation has been experiencing growth and a decrease in unemployment for the past three years, the national annual deficit of $1.1 trillion and the recent fiscal cliff debate along with the government shutdown reflect the nation’s struggle with furthering our economic growth and stability. According to the Bureau of Economic Analysis and the Bureau of Labor Statistics, GDP increased 1.1% in the first quarter of 2013 and 2.5% in the second quarter mainly due to an increase in business investments and goods exports and imports. What we can expect in the next few years is a slow and steady increase in the growth rate. However, many seem skeptical if the increase will be notable to say the least. Like GDP, unemployment has been on a steady decline for the past three years. The unemployment rate dropped from 7.8% in December 2012 to 7.3% in August 2013. This reports that there is an increase in job creations. However, what is more notable is that there is a higher increase in part-time jobs as opposed to full-time jobs, which leaves a bad taste for many because there is no certainty and sense of security. Household debt continues to decline in most categories like credit card debt. Yet consumers continue to remain cautious with a slowdown in consumer spending and spending for goods and services. If this trend continues...
Words: 635 - Pages: 3
...Le taux de chômage est un bon indicateur de santé économique pour un pays. Le fait que le taux de chômage aux États-Unis est en baisse et qu'il passe, pour la première fois en six ans, sous la barre des 6% avec la création d'environ [1]250 000 emplois cette baisse du taux de chômage déjoue plusieurs prédictions qui ne prévoyait pas la baisse du taux de chômage en dessous des 6% avant 2017. Le taux de chômage continue la baisse qu'il à amorcé en juillet de cette année alors qu'il se situait à 6.2%. Le taux de croissance du PIB est un autre bon indicateur de la santé économique d'un pays et celui des États-Unis est en augmentation pour le second trimestre. Il passe de la plus grave contraction subie par l'économie américaine en cinq ans soit un recul de 2.1% à une augmentation relativement significative soit 4,6%[2]. Ce chiffre qui est le plus élevé depuis 2011 est de bonne augure en ce qui attrait à l'économie des États-Unis.[5] Le ralentissement présent de l'économie chinoise est une bonne chose pour l'économie américaine. Ce ralentissement qui est dû en partie au vieillissement de la population chinoise. Ce vieillissement entraîne une augmentation des salaires des ouvriers chinois, ce qui à son tour provoque l'augmentation des coûts de productions pour les entreprises étrangères décidant de s'installer dans l'empire du milieu. Comme les coûts de productions des entreprises américaines augmentent ces dernières vont commencer à fermer leurs usines en territoire chinois et...
Words: 795 - Pages: 4
...Testing Phillips Curve in long run in the US Economy Introduction: Phillips curve is one of the most startling observations made in economics and gained much popularity in 1960s. The inverse relationship between unemployment rate and inflation rate was first observed by William Phillips in 1958 in his study on British economy during the period 1861-1957. For many years this relationship has been used by policy makers to target unemployment and inflation levels. However, in recent times there are various doubts emerging to this concept as there are cases studied where the trade off between unemployment rate and inflation rate can be observed in the long run thus rendering this concept entirely short run in nature? (Phillips, A.W. cited in Ogbokor, 2005).It would be crucial yet interesting to test the validity of traditional long run Phillips curve as it used as a policy guideline and has had many controversies revolving around it for the same. Objective: Phillips Curve in the Long run: Examining the Long run relationship between unemployment rate and inflation rate in United States using univariate analysis (analysis based on descriptive statistics). Methodology: The data used for analysis has 58 observations collected over the period 1952-2008 consisting unemployment rate and inflation rate of US. It has been collected from Bureau of Labour Statistics and Measuringworth.com. We will make use of statistical tools to test the existence of relationship, if any...
Words: 561 - Pages: 3
...Lusenko Yulia, Eurasian National University after L.N. Gumilyov The US and Iran: foreign policy and economy. Foreign policy Nowadays, there are no formal diplomatic relations between the Islamic Republic of Iran and the United States of America, instead of exchanging ambassadors, Iran maintains an interests section at the Pakistani Embassy in Washington, D.C., while the United States has maintained a corresponding interests section at the Swiss Embassy in Tehran. Since December 2011, the United States has also maintained a virtual embassy on-line. Historical background. The United States and Iran (then called Persia) established diplomatic relations in 1883. 1979- revolution against the shah.-The United States broke diplomatic relations with Iran in 1980 after a group of revolutionary Iranian students, angered that the deposed Shah has been allowed to enter the United States, seized the U.S. Embassy Tehran and took 52 Americans hostage The United States has long-standing concerns over Iran’s nuclear program, sponsorship of terrorism, and human rights record. The United States and the international community have imposed comprehensive sanctions against Iran to compel Iran to engage seriously in discussions with the international community and address concerns over its nuclear program and human rights abuses. US sanctions against Iran refer to economic, trade, scientific and military sanctions against Iran. On July 14, 2015, the United States, along with China, France...
Words: 481 - Pages: 2
