Premium Essay

The Current Macroeconomic Situation

In: Science

Submitted By jennifer40
Words 322
Pages 2
The Current Macroeconomics Situation

Recession and Depression
Jennifer Pearson pearson.jennifer40@yahoo.com The Current Macroeconomic Situation

Today the current macroeconomic situation in the US is troublesome abroad. The unemployment rate is 7.5% of June 2013; so the average rate ahead is about 5.7%. Instead, the inflationary rate is approximately 2.3% that is 5% less than the past average rate of 2.28%. However, the data shows the dollar buys less and less each passing day. As stated in the Trading Times, ‘’ The Gross Domestic Product (GDP) in the United States expanded 2 percent in the third quarter of 2011 over the previous quarter. I think the government need to utilize an expansionary fiscal policy, by using the money to increase the liquidity in the system. As a matter of fact, always take precaution not to over-do it because there is so much money out there that will make the dollar invaluable. Today’s current downward trend for interest rates should help tighten the economy; instead securities are hard to come by and lowering the interest rate may have minimum effect on small businesses that need capital can’t obtain a loan from a borrower.

The Current Macroeconomic Situation in the United States
The Federal Open Market Committee (FOMC) discussed in October 2012, that it was verified the unemployment rate seems to be declining. It was also verified that American households spending has risen slowly, but the unemployment rate seems to be in restraint. As the diffident income growth and decreasing housing prosperity a firm credit at the Board of Governors at the Federal Reserve System, help revive the economic situation for the FED to help expand its securities.

References

Robert L. Hetzel www.goodreads.com/author/show/1371179.Robert_L_Hetzel Todd A. Knoop...

Similar Documents

Premium Essay

Current Macroeconomic Situation

... April 14, 2010 Week 6 Assignment Introduction The current macroeconomic situation has been an issue of many talks in the United States and worldwide. Everyone is trying to change the situation, but no definite answer has been found. 1] What is the “current macroeconomic situation” (e.g worrying about inflation and/or recession) in the U.S.? The macroeconomic situation in the United States is not stable due to the financial instability, especially in the macroeconomic arena, because imports and exports are really down. The case for macroeconomic policy stimulus has been stronger in the United States than in Europe or Japan and both US monetary and fiscal policy have already acted forcefully. Going forward, the scope for policy support to decelerating activity depends on inflation developments. Soaring oil, food and other commodity prices have led to a sustained pickup in headline inflation rates and increases in producer price inflation suggest further impending cost pressures. In these circumstances, a ratcheting up of inflation expectations remains a potent threat. Another contributing factor is the devaluation of the dollar and other currency, such as the Euro or yen. Inflation has eroded the prices of commodities and goods, and the threat of possible recession has also contributed to the problem. This can be avoided by issuing anti inflationary measure to protect further damage in the macroeconomic world. 2] What...

Words: 397 - Pages: 2

Premium Essay

Current Macroeconomic Situation

...Current Macroeconomic Situation student email Week 6 Assignment Our current macroeconomic situation in the United State holds an unemployment rate of 6.7% as of March 2014. While this number does not seem like much of a jump, it has risen from 5.8% in ten years. During this same ten year period, in October 2009, the unemployment rate reached a very scary 10.0%. ("Labor force statistics," ) During the same ten year period our inflation rate has had some dramatic changes as well. Starting 3.3% in 2004, then hit an overall ten year high of 4.1% in 2007. The current inflation rate sits at 1.1%. This does not seem like a high number but some would consider it to be since the inflation rate was 0.1% in 2008. ("Current us inflation," 2014) As far as a recession, there are still people that think we are in a recession. The United States did surface from a recession in 2009. The economy has also been growing for the last five years and gaining in domestic product growth. However, economist Emanuel Saez found that 95% of income gains came from the top 1% of earners. He also found that even their earnings were growing slower. (Barro, 2014) While these numbers may lead some to think we are still in a recession, it is actually showing that wage gain has not kept up with economic growth. During the second half of 2013 and into 2014 the economic market did improve and moved into economic recovery. While recovering, payroll has slowly risen and unemployment is slowly decreasing.......

Words: 424 - Pages: 2

Premium Essay

Current Macroeconomic Situation

...The current macroeconomic situation in the US is worrisome. It seems like the past four years there has been a continuous slow growth in our economy. In 2000 the U.S. has deficits that add up a deficit of almost $6.14 trillion based on data published by the Federal Reserve Bank of St Louis. With unemployment extremely high, the housing and commercial real estate markets doing poorly we are in a slump economically. Our deficit is more than 100% of GDP and that is not easy to get out of. It looks like the slow growth rate could possibly threaten our economy to slip back into recession. With historically very high unemployment and under employment.The unemployment rate is at 8.2% as of July 2012, whereas the average in 1948 was at 5.6%. While the inflationary rate is approximately 2.3%, seemingly that is lower than the past average rate of 3.38%.Now, when it comes to the inflation rate in the United States was recorded at 1.4 percent in July of 2012. Historically, from 1914 until 2012, the United States Inflation Rate averaged 3.4 percent reaching an all time high of 23.7 percent in June of 1920 and a record low of -15.8 percent in June of 1921 ("United states gdp," 2012). According, to the Trading Economics, The Gross Domestic Product (GDP) in the United States has expanded 1.5 percent in the second quarter of 2012 over the previous quarter. Historically, from 1947 until 2012, the United States GDP Growth Rate averaged 3.3 percent reaching an all time high of 17.2 percent in...

Words: 430 - Pages: 2

Premium Essay

Current Macroeconomic Situation

...Americans and their profits Content Introduction…………………………………………………………………page 1 Market power ……………………………………………………………..page 2 Antitrust …………………….………………………………………………..page 2 Conclusion …….……………………………………………………………..page 3 References ……………….…………………………………………………..page 3 introduction Throughout history many immigrants have left their countries to come to America for the American dream to be successful and become rich and have a business. As many of this business develop a lot of corruption began to happened with price fixing, monopoly pricing, market power, monopoly structure, and much more. During the early years of paramount motion picture which was owned by Adolph Zukor, Jesse L. Lasky, and W. W. Hodkinson there were only few major motion picture companies in the market and within time they had monopolized some cities in the US. Market power In the Early 1920’s there was not much competition for companies to get regulated so as time passed motion movies became a huge way of entertainment that companies like paramount began to control some cities and created small monopolies among some cities in America, I don’t think it’s okay for one company to have complete market power because that could lead to price controls, price fixing and within time the government step in to create some sort of change to allow more major motion picture companies to display any content they had. Paramount had lost a lot of profits because...

Words: 537 - Pages: 3

Premium Essay

Current Macroeconomic Situation in the Us

...The current macroeconomic situation in the US is that there has been the mortgage crisis, crash of the stock market and we are heading towards a deeper recession. The US economy is currently concerned with unemployment but not inflation or a recession. The US economy is current concerned with unemployment because the unemployment rate has not been this high since 1981 (Amadeo, 2012). The current unemployment rate is 8.3 percent. There may be a lot of unemployed people but it does not include the people who are part time workers or people who have been temporarily laid off. This is not a concern because it is expected to decrease because more jobs will be created. Inflation rate is at 1.4 percent. This is lower than the average prior which was at 3.63 percent. This is the reason that the US is not concerned with inflation. There have been higher prices at the gas pumps and your grocery bill has increased but based on the core inflation it good (Baden, 2011). The chart below will help you understand the core inflation rates for this current year and years prior (Current Inflation Rate, 2012). InflationData.com Current Annual Inflation......

Words: 902 - Pages: 4

Premium Essay

The Current Macroeconomic Situation in the U.S.

...The current macroeconomic situation in the U.S. right now is troublesome to many. The U.S. recently came out of a recession which many are arguing could have been a lot worse without government intervention, and we could be facing a double dip recession where we might be heading into a worse recession than we experienced during the last one. This is a macroeconomic problem since it is the entire economy that was affected. “As fears over recession mount, house prices slide, unemployment rises and millions fret over the cost of their mortgage (Besley, 2008).” The U.S. has been trying to overcome unemployment, and inflation, while fighting to stay out of another recession. In order to combat these government, and the Federal Reserve or the “feds” for short have different tools and policies to try and beat inflation, and recession. The “feds” get together every six weeks in a private meeting, and determine what to do with the economy. They try and keep a balance as to not have too much inflation, but also not head into a recession. Usually Congress is good at keeping the recession in check while the “feds” worry about inflation. The tools for fiscal policy are raising taxes, lowering taxes, and on whom. They can increase spending on the military, infrastructure, or decrease spending such as on public services or military bases. Another set of tools is on monetary policy such as reserve requirements, discount rates, open market operations, and printing money. The......

Words: 460 - Pages: 2

Premium Essay

Current Macroeconomic Situation in the U.S.

...The Microsoft Case Sheriyl Robertson Shackemb@yahoo.com Content Introduction…………………………………………………………………………...page Subtitle 1 ……………………………….………………….………………………… page Subtitle 2 ……………………………….………………….………………………… page References………………………………………………………………………....... page Microsoft Monopoly Introduction In this paper I will discuss, why Microsoft was investigated for antitrust behavior? Present my opinion on if I agreed or disagreed the Microsoft was trying to gain monopoly power in the computer industry. Answer the question, “Are monopolies always bad”? And give an example of a case where having monopoly may be a good thing. Facts Microsoft produces the Window family of operating systems for personal computers and servers; also it produces applications software the run on the Windows family operating system. The most well-known are MS Office Suite which consists of Word, Excel, PowerPoint, Outlook, and Access; most of Microsoft products are complementary to members of the Windows family of operating systems for personal computers and servers. Microsoft was investigated for antitrust behavior after there were reports that Microsoft was abusing their position as the leading supplier of computer operating systems. Lawmakers investigated to see if Microsoft was trying to create a monopoly of the computer software market. They found that Microsoft was trying to cause a monopoly in the computer industry. Microsoft was sued by the US Department...

Words: 708 - Pages: 3

Premium Essay

The Current Macroeconomic Situation in the United States

...The Current Macroeconomic Situation in the United States Name: Institution: Abstract The policy makers in every economy play an imperative role in regulating the macroeconomic activities with the intention of maintaining the economic stability. In essence, economic stability is vital for improving the social welfare of citizens, as well as the economic growth. The current United States economic outlook is not good. The average American is not doing well though there has been an improvement in market performance. The 2009 financial crisis continues to affect the United States economy. High unemployment level is the major economic issues that the country is still experiencing. The unemployment rate is still high although there has been a small improvement in job creation. As a result of unemployment, the consumer confidence as well as business sentiment continues suffering. At present, inflation is not a critical threat to the United States. The Gross Domestic Product is flat. In fact, the growth of real GDP has been excessively slow. The monetary and fiscal policies can help the policy makers in solving the present unemployment problem facing the country. In particular, the policymakers ought to consider implementing both expansionary monetary and fiscal policies since the current level of unemployment is essentially cyclical. With regards to the expansionary fiscal policy, the policy makers should implement it through......

Words: 876 - Pages: 4

Premium Essay

What Is the Current Macroeconomics Situation in the United States

...What is the Current Macroeconomics Situation in the United States ? Roseanne Jones Oct. 12, 2014 Economics What is the current macroeconomics situation in the United States? How does unemployment, inflation, or recession effect our economy or our worrying about our economy? It’s no secret that since 2008 The United States has been in a recession. This is troubling since the United States is one of the leading economy countries of the world. The United States in recession has Americans as well as other countries wandering, what would be next for everyone? The recession has been since 2008. Unemployment rates were at an all time high by 2009 at 10%. As our unemployment was rising so was our fiscal deficit of our GDP. The Government knew it was time for them to take action and it would have to be something different. They tried to tide over the recession by relying on the expansionary fiscal policy. At first it did not have the effect that the government had hoped for but that was soon to change. As the government followed the expansionary fiscal policy they began to see positive changes. The rise in CSI was growing at a moderate and that led to less worry about inflation increasing. It was followed by a steep decline in the Fed rate. Since 2009 the Fed rate has been close......

Words: 523 - Pages: 3

Premium Essay

Current Macroeconomic Situation, Fiscal and Monetary Policies

...Current Macroeconomic Situation, Fiscal and Monetary Policies Current Macroeconomic Situation, Fiscal and Monetary Policies Introduction As the leading world economy, the United States and has been in a recession since 2008 and the leading outcome of this recession has been no other than unemployment. The newsflash among media and television about this recession has resulted in unemployment, and how to remedy this “current macroeconomic situation”. No one seems to have an immediate solution on how the economy will get better. The news and media do a lot of finger pointing and giving various unpleasant names to the situation such as calling it “the decade of depression”. Our inflation rate is about 2.3%, which is currently lower than the past rate that was 3.4%. As of July 2012, unemployment rate has been around 9.3%, compared to the prior average years back of about 5.6%. Research We all know that if there is unemployment, consumers do not spend as much money and businesses suffer, from that but honestly speaking, not many of us know what these unemployment figures mean or represent for sure. We can assume or estimating what it means without understanding since we were not aware of what it was before or one is not personally affected by the unemployment saga. So it gets to be a bit mind-boggling when some industries throw these percentages out there and expect us all to know what they mean and as a way to......

Words: 845 - Pages: 4

Premium Essay

Current Macroeconomic Situation in Us and Prospects for Automotive Sector

...Current Macroeconomic Situation in US and Prospects for Automotive Sector The U.S. automobile industry is large and dynamic sector contributing significantly to the nation’s output and employment. Auto industry provides the basis for a mass of related service and support industries. The industry is highly volatile and sensitive to global and domestic economic changes. During the 1960’s & 1970’s the big three accounted for 90% of automobiles purchased in U.S. However, since 1980’s foreign manufacturers entered the U.S market. So, the industry faced intensive competition from Japan, Germany & other countries. During 1998’s availability of foreign substitutes flooded the U.S automotive industry. Foreign producers, particularly Japanese, provided solitary competition to The U.S. oligopoly. Besides, the demand for automotives are highly found to be fickle and sensitive to macroeconomic conditions like, income, unemployment, interest rate etc. Regarding cost of production, The U.S automotive firms are characterized by huge fixed and variable costs. The variable cost in terms of wages and other benefits are, because most of the automobile firms like GM, Ford, and Chrysler have long been unionized. The United Auto Workers (UAW) ensures higher wages and generous benefits in the form of health insurance and Medicare for automotive industry workers than in any other non unionized firm. Eventually, UAW contracts with the auto firms lead to mounting variable and fixed......

Words: 1574 - Pages: 7

Premium Essay

Supply and Demand Simulatrion

...principles of macroeconomics as well as microeconomics can help them understand and decrease the vacancy rate to 15 percent. It is important for the company to understand the shifts in the supply and demand curves. The rental company can be more successful if they know when to raise or lower the rent. Understanding that economics plays a large role in everyone’s environment will help people and companies be more successful.. Supply and Demand Simulation In the simulation, it is made apparent how often people must deal with the principles of macroeconomics and microeconomics. Every single person is affected by supply and demand. Understanding these aspects of economics will allow people to have a better grasp on the when’s, why’s, and where’s of making purchases in their everyday lives. In addition, understanding the price elasticity of demand can also help a person to understand the importance of how lower and higher demand can have a direct impact on prices. Macro and Microeconomic Principles Supply and demand are the two microeconomic principles that appear in this simulation. When discussing the rental apartments in Atlantis, the simulation discusses the supply and demand associated with them. Macroeconomic principles also appear in the simulation. These principles relate more to the adjustments occurring in the population flow when discussing whether it is a good idea to rent or not to rent. Other factors relating to this......

Words: 1033 - Pages: 5

Premium Essay

Macroeconomics

...Macroeconomics Jennifer Swanson Professor Hector Morales 12/09/2012 Macroeconomics……………………….………………….………………………... page 3 Conclusion………………………………………………………………………....... page 4 References………………………………………………………………………....... page 5 Macroeconomics The macroeconomic situations in the United States are worrisome, as is the rest of the world. Unemployment is at a steady high, there’s a staggering inflation and the recession continues to effect people after so many years. The 2008 Financial Crisis had a more detrimental impact on advanced economies like the US than on developing economies like China and India, leading to wider projected disparities between the future GDP growth rates of the advanced and developing economies. According to Trading Economics, “The Gross Domestic Product (GDP) in the United States expanded 2.70 percent in the third quarter of 2012 over the previous quarter. Historically, from 1947 until 2012, the United States GDP Growth Rate averaged 3.2 Percent reaching an all-time high of 17.2 Percent in March of 1950 and a record low of -10.4 Percent in March of 1958.Unemployment Rate in the United States decreased to 7.70 percent in November of 2012 from 7.90 percent in October of 2012”. The recovery of the US job market has not taken off as many had expected and recently the economy added a disappointing number of available jobs. With the lack of jobs, unemployment rates continue to be an issue. The economy has lost more......

Words: 533 - Pages: 3

Premium Essay

Analysis of the Business Cycle

...1. Introduction Macroeconomics studies the behavior of the overall economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, growth rate, gross domestic product, and inflation and price levels. Research has proved that the main economic factors that affect aggregate demand are economic growth, real income, interest rates and consumer confidence. This assignment will discuss current macroeconomic conditions in the US and how these conditions have affected two monopolistically competitive firms, McDonald’s and Verizon. This paper will explore how the two companies responded to the macroeconomic conditions in terms of their stock performance, current and future sales revenue, current and future products, labor costs and hiring decisions. 1.1 The Current Economic Conditions The current macroeconomic situation is fragile. The US economy is clearly in terrible shape, but what is unclear is how we got there. Many experts trace the origins of the current economic situation to the housing bubble that came about earlier this decade (Tanneeru, M). According to the estimate, the real GDP of the US increased .25 of 1 percent over its level in the 1st quarter of 2011. The growth rate of the economy is still volatile and while any increases in real GDP are welcome, they are not sufficient to reduce the unemployment pool (Watkins, T, 2011). 1.2 McDonald’s and Verizon McDonald’s Corporation franchises and operates McDonald’s......

Words: 1498 - Pages: 6

Premium Essay

Econ312 Week 6

...What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? The information that’s being reported on the news by the news, web, and paper states the U.S. economy is current conditions greatly concerned about unemployment, which is due to the present recession. The current macroeconomic situation is instilling fear in many, because of the unstable and uncertainties of how we’ll recover and things remission from such state of being. The grime view and predictions the media is reporting it as the “decade’s depression”. Unemployment Rate in the United States decreased to 7.40 percent in July of 2013 from 7.60 percent in June of 2013. Unemployment Rate in the United States is reported by the Bureau of Labor Statistics. The United States Unemployment Rate averaged 5.82 Percent from 1948 until 2013, reaching an all-time high of 10.80 Percent in December of 1982 and a record low of 2.50 Percent in May of 1953. To be frank, there many people that do not understand these figures; and most will be assuming or estimating what it could possible mean for them without a real reason. According, to the Trading Economics, “The Gross Domestic Product (GDP) in the United States expanded 1.70 percent in the second quarter of 2013 over the previous quarter. GDP Growth Rate in the United States is reported by the......

Words: 845 - Pages: 4