This website uses cookies to ensure you have the best experience. Learn more

The Current Economic Situation Essay

1044 words - 5 pages

Introduction
This paper will be a discussion of the current economic condition of the United States and this writer’s opinion on how it can be changed. Unemployment is high and needs to be reduced to full employment. We will explore the inflation rate, GDP growth and other factors of our current economic situation.
The main factor that put us in a recession in 2007 thru 2009 was the crash of the housing market and subprime loans. Are we are no longer in a recession. But where are we?
Unemployment
Though the recession started in 2007, unemployment is still high. The January 2014 unemployment rate was 6.6%. (U.S. Department of Labor Staff, 2014) This is down from the 2013 unemployment rate of 7.4%. In 2007 the unemployment rate was 4.6% (better than the full employment rate of 5%). The unemployment rate peaked at 9.6% in 2010. (U.S. Department of Labor Staff, 2014) The unemployment rate is not what we would like to see but it is getting better and will eventually get back to full employment.
Projections by the Bureau of Labor Statistics do not give us much hope for a quick
return to full employment. “Slower projected growth in the civilian non-institutional population
and declining labor force participation rates limit growth in the labor force, which in turn limits
economic growth.” The growth in the labor force from 2012 to 2022 is projected to be .5% per
year. That is down from the .7% in the years from 2002 thru 2012. (U.S. Department of Labor Staff, 2014)
Inflation
“The latest annual inflation rate for the United States is 1.5% through the 12 months ended December 2013, as published by the US government on January 16, 2014.” ( CoinNews Media Group LLC Staff, 2014) The lowest inflation rate for the period of 2007 thru 2013 was 2009 at a rate of -.4%. The highest inflation rate during the period of 2007 thru 2013 was 3.8% in 2008.
Bloomberg.com in an article by Shobhana Chandra and Steve Matthews written on February 14, 2014 predicts that the inflation rate at 1.3%. This is the outlook of most economists. Prices in the U.S. may increase more than many expect this year, says David Rosenberg. Rosenberg stated, the Federal Reserve, through efforts to spur growth, “is carrying out the mother of all reflationary policies,” he said in an interview. “My bet is the Fed will ultimately get what it wants, and then some.” (Chandra & Matthews, 2014)
GDP Growth
“The BLS expects the gross domestic product (GDP) to reach $14.7 trillion in chained 2000 dollars by 2014, an increase of $3.9 trillion over the 2004–14 span. This translates to an average rate of growth for real GDP of 3.1% per year over the period, a tenth point lower than the historical rate of 3.2% from 1994 to 2004.” (FFN Editors, 2014) The growth of the GDP is projected to be a little lower than average.
“Between 1996 and 2000, the United States experienced a combination of full employment, strong economic growth, and very low inflation. Specifically, the unemployment rate fell to...

Find Another Essay On THE CURRENT ECONOMIC SITUATION

“The Global Economic Situation and Prospects for 2010 and Beyond: Policy Options”

1725 words - 7 pages "The Global Economic Situation and Prospectsfor 2010 and Beyond: Policy Options".As the world globalize bringing with it new economic, social and cultural dynamics in multifaceted ways for local citizens.Most would agree that globalization is beneficial, but there are also those who feel that it brings threat to national sovereignty and local culture.In most cases globalization provides greater stability and security, its key developments can

The social economic and ethical consequences of current uses of computing

1466 words - 6 pages The social economic and ethical consequences of current uses of computing.Modern uses of computing have many beneficial functions within employment and businesses.The internet is a valuable source for advertising businesses, with roughly 100, 000, 000 more people surfing the web than watching television the internet has become an invaluable medium for advertisements. Businesses are able to setup their own websites with memorable . COM domain

Siemens UK. write in detail about the current situation in Siemens UK. write about the different products which Siemens manufacture and the different markets they cater

8456 words - 34 pages .46). This study endeavours to address the issue of how to balance economic, social and environmental sustainability.Critical Analysis of the OrganizationSiemens UK is partially owned by a German parent company and is part of a "matrix" of companies in the group that operate largely autonomously. The worldwide communications operation employs almost 60,000 people, about 2,000 of whom are based in the UK. The UK operation has three main sites

Analyse the role and implementation of monetary and fiscal policies as tools of macroeconomic management to manage the Australian economy through the current global economic crisis

1483 words - 6 pages a high $57.6 billion deficit. The government have planned ways to improve infrastructure and living standard of Australian.All of the changes made by the government are done to make the economy grow and increase GDP which will decrease unemployment.The current global economic situation has brought the importance of macroeconomic management central to government's thoughts. Monetary and Fiscal policies have been loosened worldwide as economies try

Social marketing: building brand value and influence in the UK tourism industry to sustain brand consumption in the current economic recession

772 words - 3 pages Social marketing: building brand value and influence in the UK tourism industry to sustain brand consumption in the current economic recession 1.0 Chapter one: introduction 1.1 Background The current economic recession that began in June 2008 and intensified in 2009 had an effect of decreasing international tourism which was also augmented by outbreak of AH1N1 flu virus in 2009 which resulted into restriction of international travel. The

Discuss the ethical, political and practice implications on accountability in nursing as a result of the current economic climate and recent cuts in health care spending

3588 words - 14 pages . Budget is then split and administered separately in England, Wales, Northern Ireland and Scotland. Department of Health (DH) is responsible for the NHS and the head of DH reports to the prime minister (NHS, 2011). NHS provides health care to more than 62m patients, employs more than 1.7 people and has a budget of roughly 106 billion pounds. However, due to current economic climate, NHS aims to make efficiency savings of 20 billion pounds by the year

Conflicts Between Arab and Israeli - What are the roots of the conflict?, What were the events since 1948, What were the recent events and the current situation?

1026 words - 4 pages they continue not to recognise the state of Israel.Recent Events and the Current SituationIn January 2006, Hamas won the elections to the Palestinian Authority, and thus controlled the Legislature. Because Hamas is a terrorist faction, the USA and EU stopped their funding to the Palestinian Authority, as they refuse to help terrorists. In the summer of 2007, war broke out between Mahmoud Abbas' faction, Fatah, and Hamas. This led to Hamas

7 pages on the use of Psychological Operations in the current Afghanistan situation (current as of Jan-Jul 02). I was writing to view my grasp on the subject after reading a related book

1548 words - 6 pages inexpensive and carry little risk of making the situation worse. The Taliban's main radio station around Kabul, "Voice of Sharia," was deliberately taken off the air with cruise missiles--thus clearing the airwaves around the capital for unopposed Allied PSYOPS broadcasts. These broadcasts are kept updated as needed and transmitted twice-daily into Afghanistan, carrying pro-American announcements and advice on how to handle food packages dropped by

TiVo. What is TiVo, from the customers point of view? Target Market. Stakeholders. Strenghs. Weaknesses. Current Situation. Action Plan. Communications Plan

1405 words - 6 pages Iniciada en 1999, TiVo es la creadora de servicios de televisión para grabadores de video digital (DVR)Cifras:42 mil suscriptores - 14.000 por trimestre0,04% de penetración de mercadoUS$ 424 MM ingresos - US$ 24 MM pérdidas (Marzo 2000)Precios de VentaHardwareUS $449 equipo hasta 14 horas grabaciónUS $999 equipo hasta 30 horas grabaciónServicioUS $9,95 mensualUS $99 anualUS $199 de por vidaQUE ES TIVO?Un

Economic Picture of Great Britain 2003 This is an economic report on the United Kingdom going into details using current 2002 stats

3354 words - 13 pages Table of Contents:PageLegal Report:Laws on investment/ export/ intentional business4Foreign ownership4Trade organizations:5Human Rights in the Work Force6Economic Report:Type of Tax System:9Stock Market9GDP10Currency:10Natural economic resources11Trade sectors and distribution channels11Stability of currency 13GDP/capita13GDP Growth14GDP by sector14Inflation Rate15Importing partners and Products16Exporting Partners and producers16Income

Fiscal and Monetary Policy and Economic Fluctuations

990 words - 4 pages process has been characterized by changes and economic fluctuations in various aspects including interest rates, unemployment rate, and inflation within the past five years. Current Economic Situation in the U.S.: As compared to five years ago, the U.S. economy has been resilient as it continues to recover from the effects of the economic downturn and ruins to an improved health. Currently, the country’s economy is weathering federal budget

Similar Essays

The Vibrant Tradition And History Of Niger Compare To The Current Bleak Economic Situation

1471 words - 6 pages Niger, home of the free flowing Niger River is a Sub-Saharan country. Sadly it is an extremely poor country. With part of the country desert and less than 3% open for crop use. The present economic situation is bleak at best. Yet, the vibrant tradition and history of this country live today in its tribes and its people even through all of its adversities. From severe droughts to military coups to a dysfunctional government to the culture has

The Current Macroeconomics Situation Essay

2383 words - 10 pages THE CURRENT MACROECONOMICS SITUATION It seems that it is apparent that the current macroeconomics situation in US is bit difficult in numerous ways.   The situation relating to employment, inflation, monetary and fiscal policies has been detrimental to US citizens who have undergone through an trembling economy for a lot of years.   When there is enlargement in monetary activity, then the affluence will be experienced by a larger number of

Current Macroeconomic Situation In The United States

961 words - 4 pages businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic situation in the United States. Current Macroeconomic Situation: According to Payne (2014), the U.S. economic growth will strengthen in this year

Hospital Trends In The Current Economic Environment

974 words - 4 pages Hospital Trends 1. How is the current economic environment affecting hospitals? According to the article, “The Economic Downturn and Its Impact on Hospitals”, the current economic environment is affecting hospitals and other heath care facilities in a number of ways. The most common issue relates to inability of the hospitals to obtain and secure relevant financing that enables health institutions to meet their daily obligations. Since most