The US Economy Sustain 3½ To 4 Percent Economic Growth

732 Words2 Pages
bulb-icon

Recommended: Us and china trade

There are alot of things to look at as well as question if the economy can consistently grow. Realistically speaking things cannot grow forever. There are ups and downs the economy faces so it would be hard for the economy to substantially grow at a constant rate. I believe that the economy can grow but with only the right decisions that need to be made to make it grow. We as people that take part in the economy realistically want it to grow. The growth of an economy means more money to families as well as those unemployed making it easier to find a job.The thing is with the economy is are we making the correct decisions to push growth. According to article What makes the economy grow? They talked about comparing the economy to an apple pie …show more content…

When there is a anything that can benefit the people and gets the people to spend money it will only cause the economy to rise. As well as working people if there are people working then it benefits the economy as well. The rise of labor force is not as high as it needs to be for growth in the economy. Article Can the U.S. Economy Sustain 3½ to 4 Percent Economic Growth? Stated “The labor force has been rising very slowly in recent years: just ½ percent over the past 10 years, and its growth has been trending down since the 1980s”(Sichel). If labor is downsizing then there will not be economic growth. These are the reasons now we are either in a consistent rate or decreasing day by day. The economy will not see increase if this is not fixed. Productivity as well plays a huge factor if businesses are not rising to the top it is not benefiting the economy. The same article again stated “This week rate of productivity growth is well below the pace that prevailed over the decade ending in about 2004, when growth was fueled by the spread of the internet and related information technologies, as well as during the “golden” era of growth in the 1950s and 1960s. Economists are actively debating the reasons for the recent slowdown, but no credible economic forecasters or analysts believe that productivity growth could rise enough on a sustained basis to achieve Trump’s goal for real GDP growth” (Sichel). This is going to be an issue if the economy wants growth. Productivity brings growth if productivity itself has no rise then there will be no

Show More
Related

  • The Economic Policies of President Eisenhower

    1903 Words  | 4 Pages

    This problem must be dealt with immediately with strong action. I suggest implementing federal public works projects as a way of creating jobs without burdening the government with additional expenses. Ideas for these public works projects are: the construction of a Saint Lawrence Seaway, and an Interstate Highway System. This system would be a massive undertaking and would be one of the largest construction projects of all time, but it would create many jobs for Americans who are no longer employed by the war effort (Branyan and Larsen, 251). The Republican party has not been happy with the nation's economic policies for quite some time.

    Read More

  • American Manufacturing and the U.S Economy

    696 Words  | 2 Pages

    of U.S. workers employed in manufacturing has dropped from 16.5% in 1987 to 10.8% today.

    Read More

  • Defining Moments in American History

    1903 Words  | 4 Pages

    ...hnology and advancements in construction and others that will help the American economy. Americans are always trying to push to achieve the better and easier way of life. In the future I believe that there is going to be an economic struggle that will have a major effect on the economy. I believe this is going to happen because of the way that gas price are rising. If there are not major adjustments with the oil companies and the cost of fuel, our country is going to end up in a bind. I thing that the way the economy is going to be able to get back on its feet, is going to be from some new advancement in technology on how cars can run on minimal fuel. I believe that we are going to have political leaders that are going to rise the occasion of the fallen economy and are willing to make the changes necessary to bring our country out of this possible economical crisis.

    Read More

  • John Maynard Keynes Spark Notes

    742 Words  | 2 Pages

    middle of paper ... ... In summation, I am more of a Keynesian thinker than a classical thinker. Although it might be true that having a free market is the right way of having a stable economy, unemployment will still be high and might be increasing which is still one of the problems that governments face today. Plus, what happens if recession hits or even worse we go back to 1930’s where there was the great depression, it was proved then and will be proved again if it happens that the only way to solve a sort of crisis is by government intervention (basically spending).

    Read More

  • Productivity Growth In the US

    358 Words  | 1 Pages

    It was said that once-in-a-century advances in technology are transforming our economy. The computer chip is doing for today's knowledge economy what electricity did for our industrial economy a century ago. Synergies in technology are driving acceleration in productivity growth that enables us to grow faster with less inflation. Economic progress is speeding up; the speed limit is rising.      “Real GDP growth has averaged 4 percent for the past four years, with declining inflation. This almost doubles the 2 percent to 2.5 percent not long ago considered the maximum noninflationary potential. But we've been growing faster than potential and sustaining the unsustainable for four years and counting. Sounds odd, doesn't it? Our faster output growth is based primarily on faster productivity growth and secondarily on faster labor force growth”.      Productivity growth now appears to be at least 2.5 percent and rising. An increase from 1 percent to 2.5 percent is an increase of 150 percent, a huge jump with profound implications if sustained. Last year was encouraging. Productivity raised over 3 percent for the year and over 5 percent in the second half.      It was said that the United States entered the 21st century with its economy on a roll. GDP growth averaged more than 3 percent a year in the 1990s. The country created 17 million jobs, driving unemployment down to a 30-year low of 4.1 percent.      In the 1999-2000 the economy wasn’t doing so bad the unemployment rate was down, there were more jobs available, and production was doing well. When 2001 stated and even before then the economy was going down, many people were being laid off and so on. Then it happened the September 11th attack on the US, this attack has left the

    Read More

  • Why The Economy Doesn T Roar Anymore Summary

    615 Words  | 2 Pages

    The article, “Why The Economy Doesn’t Roar Anymore” by Marc Levinson of Wall Street Journal was about the United States economy, and others surrounding and why their economy’s don't exactly make notable success in this day and age. The article explained that the 25 years before 1973 were the most prosperous in our global economy’s existence. This was mostly because of WWII causing full employment in war production for many economies around the world. Not only that, but many ideas were coming about.

    Read More

  • The Current State of the U.S. Economy

    620 Words  | 2 Pages

    The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated “Too much of a good thing can be wonderful” and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming economy, instead of having an outsized tax cut, we should use the surplus to further pay down the national debt. A tax cut, though most Americans would favor it initially, would prove counter productive. Cutting taxes would over stimulate an already raging economy, and enhance the possibilities of an increase in the rate of inflation. Paying off the national debt would actually help lower interest rates and boost investments, and therefore further increase the wealth of the population, while keeping inflation at bay.

    Read More

  • The Three Most Important Things I Learned in Economics Class

    965 Words  | 2 Pages

    Economic growth focuses on encouraging firms to invest or encouraging people to save, which in turn creates funds for firms to invest. It runs hand-in-hand with the goal of high employment because in order for firms to be comfortable investing in assets such as plants and equipment, unemployment must be low. Hereby, the people and resources will be available to spur economic growth.

    Read More

  • 2008 Recession Essay

    635 Words  | 2 Pages

    Since the birth of the United States over two-hundred forty years ago, the citizens of this country and of all civilization throughout the world, have seen this country grow to extraordinary heights in terms of production, the armed forces, population, and also, the economy. Likewise, the world has also seen the United States economy drop tremendously during times such as the Great Depression of the 1930s, and most recently during the housing market crash of 2007. The changes in politics that occur on a yearly basis have both created a positive and negative outlook of today’s economy. The most recent and important political change that will decide the growth or decline of the economy for years to come was the inauguration of the 45th President,

    Read More

  • The End Of Growth Heinberg Summary

    717 Words  | 2 Pages

    The End of Growth, by Richard Heinberg, goes into deep discussion of the current state of the economy and the its future state when growth ceases. Richard Heinberg discusses current trends within the economy that predict our eventual result. The author makes it very clear that growth is important. As a society, and a planet, we depend on growth. However, certain types of growth, specifically economic growth, are on a path to destruction. He suggests that we find a different definition of growth and focus on that instead of growing from an economic standpoint. Throughout the book, Heinberg uses the image of a balloon to describe our situation. He depicts our society as a balloon that is getting pumped up to be too large and will eventually pop. In other words,

    Read More

  • Why Are Some Countries Richer Than Others?

    1486 Words  | 3 Pages

    Every year there is a ‘league table‘ published showing the level of economic growth achieved by each country. The comparison is made using each countries Gross Domestic Product, or GDP. An important factor to look at is the difference between actual and potential economic growth. Actual economic growth increases in real GDP. This increase can occur as result of using previously unemployed resources, or reallocating resources into more productive areas or improving existing resources. Whereas potential economic growth is the productive capacity of the economy. For example, it can be shown by the predicted ability of the country to produce goods and services. This changes when there is an increase in the quantity or quality of the resources. All countries have different ways of achieving this with the resources they have available to them. For this reason it party answers the question of why some countries are richer than others. It is widely thought that the productive capacity of an economy will increase each year largely due to improvements in education and technology. This will obviously differ from country to country. For example, in the UK the quality of fertilizer could be improved, hence forth increase the years fruit and vegetable output.

    Read More

  • Factors That Contribute To Economic Growth

    1280 Words  | 3 Pages

    In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.

    Read More

  • Economic Growth Essay

    700 Words  | 2 Pages

    Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public

    Read More

  • Effects Of Inflation Essay

    1615 Words  | 4 Pages

    Unemployment issue can lead to a lot of impacts to the economic growth. Higher unemployment rate will lead to increase government borrowing. When people are without their job, they would paid less in the income tax. So, it will cause a drop in tax revenue because there are lesser people paying income tax and spending less. Due to the loss of earnings to the unemployed, the government need to spend more subsidy for them in housing benefits and income support.

    Read More

  • Economic Growth and Development

    884 Words  | 2 Pages

    It is natural to be misled by the idea that economic growth is the key

    Read More

More about The US Economy Sustain 3½ To 4 Percent Economic Growth

Open Document