Current Macro Economic Situation in the U.S Research Paper

Exclusively available on Available only on IvyPanda® Made by Human No AI

The United States is currently battling slow growth in its economy coupled by high rates of unemployment (McConnell, Brue, Flynn, 2011). Analysts insist that the economy of the United States is sinking (Mundi, 2012). However, the government is taking measures to restore it.

Although unemployment persists in the United States, the country has managed to create more than 100,000 jobs since January 2012. However, a deficit of more than 100,000 jobs still exists. In the United States 12.8 million people lack employment, and the rate of unemployment remains at 8.3 percent (Mundi, 2012).

The economy of the United States went into recession in 2007. Since then, the Bush and Obama administrations have done much to control job losses, and create more jobs. From 2009 to date, the government has released bailouts, and other programs such as tax credit aimed at economic stimulation.

The government reacts to recession through expansionary fiscal policy tools (McConnell et al, 2011). In 2009 the government pumped into the economy $ 787 billion as stimulus, but it failed to reduce the rate of unemployment.

This was followed by other similar packages, but they have been of little help. Because of recession, the rate of unemployment rose by100 percent in 2007.

In March 2012, it was at 8.2 percent then in April it dropped to 8.1 percent. In May 2012, it rose to 8.2 percent where it remained through June before rising by 0.1 percent in July (Mundi, 2012).

Inflation has been reducing since the beginning of 2012, but it still remains a problem. Throughout January and February of 2012, it was 2.9 percent. In March it dropped to 2.7, then to 2.3 in April, before stagnating at 1.7 throughout May and June (Mundi, 2012).

The Federal Reserve applies inflation rate targeting to curb inflation. It often reduces the amount of money in supply by selling government securities, and can announce a moderate rate of inflation agreeable to it.

Currently the core inflation rate is 2 percent. At the moment inflation is below this, but if it increases to more than 2 percent, the government will use the contractionary monetary policy to control it (McConnell et al, 2011).

Many people cite market failure as having brought about recession, because banks took so many risks and loans meant for expanding their profits. The crisis has persisted, due to wrong steps taken by the government.

For example, the Federal Government spent more than $ 1 trillion which was meant to go into stimulating the economy. Many people believe that stimulus packages caused negative effects on the economy of the United States, due to their bad design and execution. These packages have expanded the debt and deficit of the government (Perlo, 2012).

Growth in GDP for the American economy has been fluctuating with time. In the first quarter of 2012, the GDP grew by 1.5 percent from the previous quarter (Mundi, 2012).

Currently, per capita GDP is $ 48,100. The government is responsible for managing the growth of the economy. It achieves this through fiscal and monetary policy.

In conclusion, the focus of the paper is the current situation of the United States economy. The state of the economy has been bad since 2007; however, government efforts directed at inflation and unemployment are already bearing fruits.

References

McConnell, C. R., Brue, S.L., Flynn, S. (2011). Macroeconomics. New York: McGraw-Hill Companies. Print.

Mundi, I. (2012). . Web.

Perlo, A. (2012). The U.S Economic Situation and the 2012 Elections. 2012. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2019, April 5). Current Macro Economic Situation in the U.S. https://ivypanda.com/essays/current-macro-economic-situation-in-the-u-s/

Work Cited

"Current Macro Economic Situation in the U.S." IvyPanda, 5 Apr. 2019, ivypanda.com/essays/current-macro-economic-situation-in-the-u-s/.

References

IvyPanda. (2019) 'Current Macro Economic Situation in the U.S'. 5 April.

References

IvyPanda. 2019. "Current Macro Economic Situation in the U.S." April 5, 2019. https://ivypanda.com/essays/current-macro-economic-situation-in-the-u-s/.

1. IvyPanda. "Current Macro Economic Situation in the U.S." April 5, 2019. https://ivypanda.com/essays/current-macro-economic-situation-in-the-u-s/.


Bibliography


IvyPanda. "Current Macro Economic Situation in the U.S." April 5, 2019. https://ivypanda.com/essays/current-macro-economic-situation-in-the-u-s/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1