Current Status of the US Economy
Current Status of the US Economy.Regardless of the challenges it face at the domestic level together with the rapid transformation of the global view of landscape, the economy of the US still remains the biggest and also of more significance in the world. The economy of the country is a representation of close to twenty percent of the global based output and even is still bigger than even China’s economy. On top of this, based on the observation made by Bharati & Chaudhury, (2015), US is so far ranked at position six in terms of per capita GDP (PPP). The country’s economy has well developed and advanced technological wise of services that represent nearly eighty percent of the nation’s output (Kalayci & Yazici, 2016). The economy is much dominated with service based firms in fields such as technology, healthcare, retail services and financial services as well. Bigger companies in the country also have significant roles in the global arena, where at least twenty percent of the firms from the Fortune Global 500 are from US.
Despite the service line being the major determinant of the US’ economy, Cabral, (2016) concurred that the country is also endowed with crucial base of manufacturing that is approximately fifteen percent of the whole of the output. The US emerges to be the second biggest world manufacturer and also leads in top value firms like the automobiles, machinery, chemicals, aerospace and telecommunications (Kalayci & Yazici, 2016). On the other hand, agriculture is not even close to two percent of the output from the country. Irrespective of this, bigger quantities of lands that are arable, farming technologies that are advanced and the subsidies from the government lead to the country being the net exporter of foodstuffs and also leading agricultural exporting nation in the whole of the world.
According to Kalayci & Yazici, (2016), the economy of the US is able to maintain its strength by combining various features. For example, the nation is capable of accessing varieties of resources and complicated physical form of infrastructure. At the same time, the country has bigger, much educated and productive types of labor force. On top of this, the human and physical capital enjoys full leveraging in the markets that are free and the environments that support business activities (Cabral, 2016). The government and the citizens of the US all have contribution to this peculiar economic type of environment. On its part, the government offers the stable political environment, system of finance that is legal and regulatory form of structure that enables the nourishing of the economy. The population generally such as the diversified immigrant offers the needed solid work type ethic plus the sense linked with entrepreneurship and the risk involved in the mix. Nonetheless, the growth of the economy in county is aided by the present innovation, development and research together with the capital from of investments.
The economy of US as at present is developing from the notable period associated with turmoil (Cabral, 2016). Various factors like the low rates of interests, more lending mortgages, too much risk taking within the financial sector, higher rates of indebtedness among the consumers and lax regulation from the side of the government have resulted into major instances of recession that started as far as the year 2008. The housing type of market and the various renowned banks ended up in collapsing and the economy of US contracted up to the last quarters of the year 2009, in what was identified as the long lasting downtown from the time of the Greatest Depression. Thus it prompted the government of US in intervening by injecting $700 billion for buying the trouble faced mortgage linked properties and eventually leading to bigger corporations to regain stability in the financial economy. Likewise, it resulted into the introduction of a stimulus type of package of value $831 billion for spending for the next one decade towards boosting the economy.
Bharati & Chaudhury, (2015) opined that the US economy has been undergoing slow recovery but not evenly distributed from the period of the recession witnessed in the year 2009. The economy has been lucky to be supported by the expanding monetary types of policies. The aspect not only entails the holding types of interests within the lower bound but at the same time also factors the unconventional types of practices from the government (Kalayci & Yazici, 2016). The practices are the purchases of bigger quantities of financial related assets towards ensuring the increment in the supply of money and holding the long term types of interests’ rates or the quantitative type of easing.
Conclusively, regardless of the labor types of markets in the country experiencing major recoveries and the employment turning the pre-crisis statuses, on the other hand, there still exist notable debates concerning the health of the economy of US. On top of this, despite the worst effects linked with recession as present fading, the economy is still faced with many major challenges as it seeks towards moving forward. Infrastructure that keeps on deteriorating, stagnation in wages, increasing income inequality, pension and cost of medication that are elevated and bigger deficits in the present account and government budget all constitute the issues that face the economy of the US.
Bharati, P., & Chaudhury, A. (2015). Current status of technology adoption: Micro, small and medium manufacturing firms in Boston. Bharati, P. and Chaudhury, A.(2006),“Current Status of Technology Adoption: Micro, Small and Medium Manufacturing Firms in Boston”, Communications of the ACM, 49(10), 88-93.
Cabral, P. A. R. (2016). The grip of USA’s healthcare system against the dimension of the food industry: how obesity is becoming unstoppable (Doctoral dissertation).
Kalayci, S., & Yazici, S. (2016). The Impact of Export Volume and GDP on USA’s Civil Aviation in between 1980-2012. International Journal of Economics and Finance, 8(1), 229-235.