Current State Of US Economy

Beginning with unemployment in the 2007-2009 recession, U.S. unemployment rates peaked at 10% as well as held 41 consecutive months at rates higher than eight percent (Lazear 1). The U.S. economy plummeted during this time; many attributed the shift to a large decrease in the number of employed workers. To be able to better understand the unemployment issue, we must first examine the form of unemployment faced by the U.S. economy. Many believe that the changes faced by the U.S. labor market

The health of the current U.S. economy appears to be growing gradually. The second quarter real GDP growth was 3.7% and the unemployment rate declined to 5.3%. The U.S Federal Reserve (Fed) is expected to raise interest rates in the near future when it sees clear signs of strong economic growth and improvements in the job market.

Today the United States Americans more than ever; there is a constant fear of an awaiting recession due to the economy. The recession in the later 2000’s has been known as the greatest economic decline since the Great Depression. The United States of America, the banks and businesses are not able to succeed and are failing due to the market. Many people across America cannot afford their homes or bills due to the unemployment rate that seems to keep increasing. Many people blame this on the higher oil or gas prices, and the wars that the United States acts on. The recession has overall declined our economic activity in business profits, employment, and investment. This is all due to our falling market, and the rise of prices that so many Americans cannot afford.

The recession of 2008 is also called the ‘Great Recession’, said to have begun in December 2007, and took a turn for the worse in September 2008, and it was a severe economic problem expanded globally. This recession affected the world economy, and is said to have been the worst financial disaster since the Great Depression. The decline in the Dow Jones this time was -53.8%. Since the official start of the recession in December 2007, and through June 2010 there have been about 2.3 million homes foreclosed in the United States. In 2012, the state with the most foreclosures in January alone was California, with 51,584 houses being repossessed. Unemployment during this collapse was 8.5%, and continued to increase to about 10% as of 2010. People’s reaction to this recession was a huge decrease in spending and borrowing from banks, but an increase in saving.

Ever since September 11, 2001, the vitality of America’s economy has never been the same. Aside from America already going through a recession since, the attacks by Islamic terrorists on American soil had escalated the situation in one of the worst ways possible. The purpose of this paper will highlight the issues regarding America’s recession and its overall impact on the economy.

The United States is considered to be the world’s largest national economy. The United States have proven time and time again that its economy is one that should be modeled after by showcasing a proven track record. Although its economy is considered the largest, it has had its problems such as the Great Depression and the Recession that have taken placed recently beginning in 2007 lasting until mid 2009. Both of these economic down turns are similar in nature which has caused many to feel negative effects,

America has recently fallen into a great recession, and though some claim we are no longer in a recession, our country and has never quite bounced back. Our economy is fragile and unstable. “In June 2009….native born workers lost 1.2 million [jobs] (Herbert 565).” Businesses are afraid to hire more workers; for fear that consumers aren’t comfortable spending money quite yet. Consumers are afraid to spend money for fear that they won’t be earning any more. People who were once financially stable are barely getting by, some even homeless. This recession has been said to be equal to, if not worse than, the Great Depression. “The human suffering in the years required to recover from the recession will continue to be immense (Herbert 565).” Recovery may be happening, but is definitely an unstable process.

Since the Great Depression of the 1930s, the United States of America has experienced many recession. The most recent of these recessions began December of 2007 and lasted till about January of 2009. Within the time period, the United States lost approximately 8 trillion dollars when the housing market collapsed causing chaos in the financial market led to a collapse in business investments. As consumer spending and business investments declined, it led to the loss of 8.4 million jobs which then caused major employment contraction doubling the unemployment rate from 5% to 10%. Fear began spreading among fellow Americans as their job and financial security was hanging from a small threat, which led to a drastic decrease in consumer spending.

Although the economy is working out well for some people, the value of the dollar should be increased or the prices of goods be lowered to support lower income families. Some people have a lot of extra money to go out to places, or get a new car, or sometimes even move houses, but then there are low income families that are living paycheck to paycheck, and it is a special occasion simply to go out to dinner. According to Kairoscenter, “The official poverty rate is 14.5%, meaning 45.3 million people in the US live in poverty, up by over 8 million since 2008. An additional 97.3 million (33%) of people living in the United States are low-income, defined as incomes below twice the federal poverty line, or $47,700 for a family

Everybody in the United Stated was affected by the recession that began in December of 2007 and spanned all the way to June 2009. Even though the recession is over, many people are still being affected by it and have still not been able to recover from the great recession. “The recent recession features the largest decline in output, consumption, and investment, and the largest increase in unemployment, of any post-war recession”. Many people lost their jobs due to the recession and some of them are still having a hard time finding jobs and getting back on their feet. Businesses

Real economic growth is defined as, “the rate at which a nation 's Gross Domestic product changes or grows from one year to another.” (“Real Economic Growth Rate”). In the U.S, GDP growth rate is currently 1.6%, compared to 1965, when it was 6.5% (Amadeo). Total Factory Productivity, or development of business processes and technological growth, is another measure of economic growth. The average TFP from 1891-1972 was 2.33, where the average TFP today is 1.33 (Matthews). It is apparent that the U.S. economy is not growing the way it once did. There are many reasons it is not doing well, and cannot grow how it used to. These include decreased productivity in the workforce, no new technology, limits on

The current rate of GDP growth, according to the Bureau of Economic Analysis, is 2.7% (for Q3), and it was 1.3% in Q2 of this year. This rate reflects relatively slow growth, with challenges remaining in the domestic market and with sluggishness in Europe suppressing exports to that region. The rate of GDP growth is predicted to slow to a decline of 0.5% between Q4 2012 and Q4 2013, the US re-entering recession, according to the Congressional Budget Office's projections. These projections are based on the provisions of the Budget Control Act being enacted, though any observers are doubtful that this will occur.

What would an interventionists say: “Prohibiting travel will simply prevent our nosy reporters of the media from finding trouble or getting themselves killed. Who says it will prevent ISIS from prepping more trainees or finding a way to negotiate for nuclear weapons? Leaving them alone will simply give them more time to think on how to spread fear and their practices worldwide. After World War II with Hitler, we know what appeasement and a smart leader can produce with enough time on his hands.”

The collapse of the housing bubble A.: home prices have a significant impact on household wealth. Home prices almost 2006, 2007-2008 previous doubled from 2000.According to the United States home price index for the first quarter of 2009 from the first quarter of 2008 fell 6.2%. Housing and subprime mortgage prices increasing spending by people. Homes and residential investment falling by a sudden drop in the price of services decreased income and savings; they enter a power saving mode led to forced.

Going into a career (rather furthering my education in finance) in finance has had me wondering about the state of my state’s economy lately. As an accountant, Maine’s economy will continue to affect me professionally (and personally, being a citizen of the state) for the rest of my adult life. Even if all I ever do is taxes for other citizens of my state, to know the state of the economy here will change the way things are done. I don’t have enough space to go through everything that’s affecting Maine’s economy today, so I’m just going to touch on a few basic things that everyone deals with and has base knowledge about, such as health care, education, cost of living, and food insecurity, and try to explain it the best I can.