...What is The State of the Economy? How is the U.S. economy doing in 2012? Based on my research…. It is not doing nearly as well as some may want us to believe. Although things look to be stable at the moment, I fear that the upcoming presidential election, dependent on which way it goes, could lead us spiraling down a path that will take us years to dig out of. We have accumulated way too much debt, we consume far more wealth than we produce, millions of our jobs are being shipped overseas, unemployment is at a 5 year high, family budgets are being squeezed more than ever, gas prices are out of control and the housing market will take years and years to recover. Let’s start with the United States Deficit, which is currently at $16,202,358,883,742.16 and rising. The National Debt has continued to increase an average of $3.89 billion per day since September 28, 2007. Another contributing factor to the poor running economy is the unemployment rate. The unemployment rate is currently at 7.8%. Although it has declined in the past month it has nearly doubled since 2007. The percentage of working age Americans that have jobs is not increasing. The employment to population ratio has stayed very steady (hovering between 58% and 59%). If you gathered together all of the workers that are "officially" unemployed in the United States into one nation, they would constitute the 68th largest country in the entire world. We need to start looking in our own backyards and stop...
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...Evan DiLauro ECON 152 12/3/13 The State of the United States Economy By looking at the past five years of data, it is clear that the United States economy is in a state of rebound from the Great Recession. The data shows that before the recession the United States’ economy was operating at a solid level. The recent numbers show that the economy is on its way back to the state it was in before the recession hit. The Great Recession began in December 2007 due to major factors that lead to economic turmoil. Causes of the recession include failure of the federal to stem the tide of toxic mortgages, breakdowns in corporate governance, a excessive mix of risky barrowing by the households and wall street, key policy makers were not prepared for the crisis, and breaches in accountability and ethics at all levels. Due to the combination of these factors the Great recession was started and did not officially end until June 2009. During this time the unemployment rate took an all-time high and GDP growth was slowed down and at one point went negative. This was a rough time for the United States financially. Many people were in debt and did not have a job. The housing market also crashed, leaving Americans with little money and high prices on real-estate. Consumer cutbacks took a major increase, which also increased inflation, which lead to the decrease in GDP. Although the recession ended in 2009, it was the worst year for the United States unemployment rate. The annual unemployment...
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...Current State of the Economy Our economy has been in a recession for the past few years, but looking into the key indicators for our economy one can see that small glimmer of light shining from the end of the tunnel. The key indicators as mentioned above include: the current Gross Domestic Product (GDP), whether the economy is expanding or contracting, the unemployment rates, the credit card rates, the U.S. Prime Rate, and inflation. These key indicators may give one that glimpse of hope that maybe; just maybe our economy is gaining better ground. Gross Domestic Product (GDP) To have a full understanding of our expanding economy one must first understand the Gross Domestic Product (GDP). The GDP is one of numerous national income and output measures. The GDP represents 24.35 percent of the world economy; this is reported by The World Bank Group. As of 2011 the National GDP was found to be worth 15094 billion US dollars. There are three ways to define the GDP and gain identical results (Trading Economics, 2012). Defines the GDP First, the GDP, within a specified period of time, will be equal to the total of goods and services produced. Second, the GDP will be equal to the sum of the value of production. Third, the GDP is equal to the sum of the income generated by production (Trading Economics, 2012). Expansion Our economy is currently expanding but has yet to be found in recovery mode. When the level of GDP lies below the peak of the previous expansions is when...
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...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...
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...Canada is Dependent on the Economy of the United States Canada’s economy relies heavily upon the U.S economy when it comes to international trade, foreign investment, and jobs. They share the biggest trading relationship in the world with almost 2 billion dollars’ worth of products crossing the border every single day. The stock market consists mostly from the companies located in the U.S. Who obtain natural resources from Canada. Our southern neighbor is the biggest foreign investor in Canada; in addition 1 out of 5 jobs in Canada are linked to international trade. In conclusion if anything were to happen to the economy of the United States it would affect our economy as well. Canada is a member of the G8 and has the 7th largest economy in the world. U.S is very important to us, considering the fact that about 70 percent of the population lives 200 Miles away from the boarder. Trade is essential; Canada is blessed with a huge oil resource, the second largest after Saudi Arabia (Canada’s economic overview, Par4). We are also the second largest country after Russia. We are known worldwide as a very diverse country, top when it comes to economics and occupies a lot of land. Trade of natural resources and different products is very important to keep Canada at the top. The United States of America and Canada share the biggest trade relationship in the world. U.S accounts for 73% of all exports and 63% of all imports in Canada. When NAFTA (North American Free Trade Agreement)...
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...A capitalistic economy, like that of the United States, produces big winners but also big losers. This is simply the nature of the system. However, our government has created social safety nets to catch those who have fallen into poverty, like welfare and social security. The American government has done all that it can do in order to assist those in poverty. At one point the impoverished individual must take action and utilize our capitalistic economy in order to sustain a better quality of life. My parents brought me into the world when they were only eighteen and nineteen years old. This mistake made life very hard for the two of them considering they only had high school diplomas and came from families that did not have the means to assist them. At the time of my birth my father was burdened with being the sole breadwinner in the house. This, of course, brought financial strains onto my family. My parents did seek government assistance, but they were determined to climb the economic ladder and create better lives not only for themselves, but me and my two younger sisters as well. My father pursued a career in construction all while taking night classes at the local...
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...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...
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...HAIDAR H. HAMOUD WEEK 5: ASSINGMENT 2 MKT 505/ STRAYER UNEVERSITY DR. JEAN GORDON APRIL 5, 2011 American and European companies look at Cuba as a fresh market that would become a great venture for short and long term investments. However, the United States and Cuban affairs never condensed the high tension that was started in 1959. The economical siege started with the trade restriction dilemma between the U.S. and Cuba in 1959 when Fidel Castro took over the government in Cuba. Fidel Castro first action, as a young leader for the newest communist nation, was taking over all private sector businesses and properties including those were owned by American inverters. Castro disregarded all negotiation attempts and refused to reimburse the original owners; simply he seized all private sector properties and businesses using military forces costing many U.S. inverters to lose millions of dollars in 1959. Those properties were estimated to be around 1.8 billion dollars or about 6 billion dollars in present’s day (Keegan & Green, 2011). In response to the United States political and economic pressure on the Cuban regime, during the cold war, Cuba joined the other side of the battle by becoming an ally of the Soviet Union to take advantage of the Soviet Union economic and military aids. As a fee for such aids, Fidel Castro had to allow the Soviet Union to place nuclear armed short and mid-range missiles in Cuba which grabbed the U.S attention. The Soviet Union nuclear...
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...firms are Procter and Gamble and Colgate Palmolive which represent the majority of the market share in the United States. Finally, it is found that innovation is a key factor in monopolistic competition because it represents the ability to differentiate products and attract more consumers. The main conclusion drawn from this paper is that the monopolistic competition is the most common model in the United States and the technology and innovation advances have allowed organizations to reach these types of markets and maximize profits. Venezuela vs. United States Economy Have you ever though why some countries are richer than others? Or what there is inequality among countries? All those answers are related to the economy of a country and their macroeconomic indicators. Today, macroeconomic is a crucial concept that we can see every day in the news; employment, inflation, and growth are some of those economy indicators. (1) But it is not so easy to say why a country is richer than other; or why the economy of a country with one of the highest reserve of oils does not have a good economic performance as other countries have. It does not depend on one only thing, there are several factors that increase the gap between two countries in terms of economic development and growth. This paper develops a comparative case study to illustrate the performance economy of two countries, and the level of income disparity...
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...the United States Economy Immigration has long been a hotly debated political issue in the United States, especially when it comes to illegal immigration. Because it is a nation of immigrants, immigration has always been very important in shaping the United States. Today, widespread immigration to the United States both legal and illegal continues to have a variety of effects. Most economic historians believe the effects of immigration have been much less harmful than commonly supposed and, in many ways, have been beneficial. Positive Economic Effects Immigration provides several economic benefits to the United States. The argument for the free movement of labor among nations is exactly the same as the argument for the free movement of labor among the sectors of the domestic economy. Suppose an economy produces only two goods, X and Y. If demand for good X picks up, the demand for labor used to produce X rises as the marginal revenue product of labor employed in the production of X increases. Labor will move out of the production of good Y if and only if its productivity is higher in X in terms of the value of output. This movement ensures efficiency. Recall the simple definition that an efficient economy produces what people want at least cost. Those who favor a looser policy believe immigrants do not displace U.S. workers but rather take jobs that Americans do not want. Immigrants serve as domestics and low-wage farm workers producing things that the United States needs. In...
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...the 7th or 8th largest economy amongst the states according to GDP. On the positive side, Ohio has maintained a lower cost of doing business than most, if not all, of its neighbors. Ohio is centrally located with many major manufacturing facilities in the United States. Secondly, the state of Ohio has the lowest tax rate on new capital investment in the Midwest and the third lowest in the U.S. for most of the last decade. Negatively speaking, the heavy reliance on manufacturing related employment is not going to be good, long-term. There will continue to be limited gains in service jobs due to slow population growth. Combine that with the elevated level of out migration and Ohio is going to be dealing with a smaller population percentage. The outlook for Ohio is mild at best. Total employment is expected to increase 9.3 percent over the 3-5 years, resulting in over 489,000 jobs. Personal income should also see an uptick of around 3.5 percent for the next year. As far as employment goes, the number of jobs will continue to be a problem, especially amongst neighboring states. Total employment is still 2 percent below the prerecession peak. It is also very important to look at home price growth as well. It has slowed down of recent, and growth over the next year is only expected to be between 2-3%. Ohio’s recovery has accelerated over the past few quarters, but it still trails the Midwest and nationwide averages. I would think it wise to choose another state over Ohio if you were...
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...Assessment of State Growth Performance of Indian Economy Assignment # 2 Section C3 – Group # 9 Submitted by: AMIT K NAIR FT163010 amitk.pgpm16c@greatlakes.edu.in GUNJAN KAUR JABBAL FT163026 gunjan.pgpm16c@greatlakes.edu.in KUMARESH PASSOUPATHI FT163044 kumaresh.pgpm16c@greatlakes.edu.in PIYUSH MAHAJAN FT163064 piyushm.pgpm16c@greatlakes.edu.in SANKHADEEP GHOSH FT163083 sankhadeep.pgpm16c@greatlakes.edu.in VAIBHAV MALIK FT163099 vaibhavm.pgpm16c@greatlakes.edu.in SHAGUN SRIVASTAVA FT164081 shagun.pgpm16c@greatlakes.edu.in VARUN SODHI FT164097 varuns.pgpm16c@greatlakes.edu.in Investment and Consumption Expenditure People’s savings has gone down by 9.44% from 2010. They are probably spending it, or investing it. The Consumption Pattern of the country has been fairly constant. So, they must be investing it somewhere else. Investments into Capital Creation is falling every year (13.97% fall from 2010). Agrarian and Services Output Agriculture has accounted only for 15 to 18 % of total GDP, declining steadily over the past 3 years. Services grew drastically from 2012-13 to 2013-14, contributing heavily to total Indian GDP ranging from 55% to 58% in last 3 years. This demonstrates a drastic shift from traditional agrarian economy to industry and services sector. 1 Macro Economics Evaluation and Assessment of State Growth Performance of Indian Economy Assignment...
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...Over many years, there have been debates about whether the economy is affected by pollution. There are many different sides of the debate, but two compelling sides that turn different ways could answer the question. Some stating that the economy is directly affected by these gasses while others say that by emitting gases, the economy would improve. This essay will evaluate the outcomes of pollution and determine to what extent does pollution affect the United States economy? Pollution is a huge problem in America and is said to have a negative effect on human health as well as the economy. According to the Washington-based think tank, they state that if America used their resources wisely, and wiped out the greenhouse gases, our economy would...
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...Agriculture effects the economy, sustains natural resources, and is food, shelter, and clothing. Agriculture has many impacts on this country. Plants make chlorophyll which makes oxygen that we all breathe.Agriculture is also very important in our culture.In the next paragraph, you will learn how the economy is effected by agriculture in the U.S. Agriculture impacts the economy in many ways. Consumers spend 547 billion dollars on food originating from farms in the United States. Wisconsin's farms generate more than 88.3 billion dollars every year. The economic crisis from 2008-2009 had a major effect on agriculture. The better our agriculture is the better our economy is. 54% of laborers are in agriculture. 13.9% of the share in GDP is held by the agriculture sector. In agriculture 44% of our exports are related to agriculture. Farmers grow food, then people buy the food from the grocery store and the grocery store makes money off of it. With emphasis on agriculture, food security can be achieved. Agriculture will be a rising industry, as long as the human stomach feels hunger. There was 390 billion dollars in the total cash receipt for farms last year. The effect that agriculture has on the economy is very great. Natural resources are very important in our daily lives....
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...Emerging Market Mutual Fund Performance and the State of the Economy∗ Ayelen Banegas November 2010 Abstract Following the financial liberalization of many Asian, European, and Latin American countries emerging markets have become a central player in the global economy. As a result the universe of equity funds investing in these developing economies has been in continuous expansion. In this paper we propose a set of asset class specific predictive variables for emerging markets and exploit them in order to identify those funds that outperform the market in different phases of the economic cycle. We employ a comprehensive survivorship-bias free universe of global and regional emerging market funds and use a Bayesian framework that incorporates predictability in manager skills (stock selection and benchmark timing skills), fund risk loadings and benchmark returns by exploiting ex-ante business cycle related state variables. Our results provide empirical evidence of return predictability and the economic value of active management in emerging markets. ∗ I would like to thank Allan Timmermann for his guidance and support. I am also grateful to James Hamilton, Bruce N. Lehmann, Ross Valkanov and Debbie Watkins for their helpful comments. I also benefited from discussions with Ben Gillen. Finally, I want to thank Russ Wermers for providing me with the mutual fund dataset. 1 1 Introduction During the last decades the mutual fund industry has been continuously...
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