Name: Date: Course: American Economy Today Introduction The performance of the American economy has not been promising currently. In fact, the economy has been worsening by the day, causing the unemployment rates to increase, while putting the lives of the Americans at risk, since most of them cannot afford to enroll for a health cover program…
” The discussion takes the form of an analysis, with a focus on unearthing the causative factors for the declining state of the American economy, while seeking the possible remedy to the situation. Thus, this discussion elaborates on the factors hindering the desired performance of the US economy, while suggesting the remedies as presented by the two articles. The essence of selecting this topic is because it is a current issue affecting America, and it is vital to understand the causes of the situation. Most importantly, it is necessary to understand the way forward. Discussion Having been considered the world’s largest trading nation, and having been ranked among the top wealthiest countries of the world, it is expected that the economy of the US should be performing better than the current situation (Kuhl, 44). The wealthy nature and the ability of the US to create employment opportunities over the years have attracted many immigrants, who come to the country to seek for employment opportunities. ...
According to a survey carried out by the Institute for Supply Management Survey, the state of the manufacturing sector in the US has continued to contract (Summers, 53). It was observed that manufacturing firms hired the lowest number of workers starting late 2009, an indication that the state of the sector is wanting. Historically, the national factory activity for the US has always ranked above the 50 digit mark. However, in a clear indication of the dangers facing this sector, the index fell to 49.8 going by the index for July 2012. This crashed further to a 49.6 digit index according to the August 2012 data (Kuhl, 47). Considering that the manufacturing sector is among the most dependable and promising sectors of the US economy, this situation raises a red flag that things are not going in the right direction. The index presented above indicates that the ability of the US economy to export products to foreign countries has continued to shrink, posing a danger to its trading sector, which also ranks as the world’s largest (Summers, 58). The worrying nature of the US economy is indicated by the current unemployment rate. Historically, the unemployment rate of the US has averaged at 5.3% (Summers, 33). However, Kuhl alleges that going by the data released by the US Bureau of Labor Statistics, the unemployment in the US stood at 7.9% in August 2012 (Kuhl, 68). This puts the number of the unemployed people in the US at 12.3 million. The growth in the number of employment opportunities created by an economy indicates it health status. However, considering that the US trade deficit has been increasing, it has been importing more than it exports ...
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