Got a tricky question? Receive an answer from students like you! Try us!

Four Major Problems Faced by the US Economy Currently Based on Current Media Reports - Term Paper Example

Only on StudentShare
Author : aimeereynolds
Term Paper
Macro & Microeconomics
Pages 5 (1255 words)


The economy of United States of America was performing very well at the start of the century but then went under deep recession in the year 2008 with the credit crunch and all the financial institutions seem to crumble at the same time. …

Extract of sample
Four Major Problems Faced by the US Economy Currently Based on Current Media Reports

The 2008 financial crisis of United States affected the economies throughout the world and the macroeconomic factors were shaken up. The issue started with the debt crisis when the borrowers were unable to service their loans and thus faced difficulty in paying back the loans. This resulted in the housing market crisis when people ended up with bad loans which in turn resulted in people being deprived off their homes. The credit crunch also led to damage to investors confidence and investors and savers were unwilling to inject the money into the economy which resulted in shortage of money and cash, and this also resulted in the rise of unemployment. US Federal Debt/Deficit Since the financial crisis struck in the year 2008, the US debt has been very high. According to a recent news article, the United States debt is nearly as much as the total value of all its goods and services produced in the US during the financial year. CNBC reports that the total value of the US debt is $14.96 trillion which means that the United States external debt as a percentage of its GDP stand at 99.46% (CNBC). This is a very high figure and indeed a very dangerous one because high leverage of debt can be very risky. As a matter of fact, it is suggested that every person born in the United States has a debt of $47,664 in the very second it is born. ...
Download paper

Related Essays

US rising debt level and current economic problems
According to the forecast of the organisation for economic cooperation and development (2011), the budget deficit for US is likely to increase to 10% of the GDP. This projection means that the US government must formulate ways of arresting the looming economic crises as a result of the increasing deficits. The main reason why the public debt in America would increase is the need for the government to increase job opportunities by stimulating demand (Saad 2011). When a government intends to create more jobs, it will increase the level of demand by increasing its public expenditure and reducing…
5 pages (1255 words)
US economy: OECD predictions about US economy
The curse of this financial crisis fails to die down and gives the country little scope for recovery. The country has recently been caught in a ‘debt trap’ as debt threatens to rise upto 101.1% of the country’s GDP. Rating agencies currently have rated the US economy much below its normal range. …
8 pages (2008 words)
Effect of retiring baby boomers to US economy
In this regard, it has been projected that the world will have about 1 billion elderly people by the year 2030, which accounts for about 33% of the world population3. As earlier stated, the U.S. is one among the countries facing the challenge of an aging population. This is because its population has been aging very fast though as fast as that of Japan. Research indicates that the U.S. aging population increased to 13.1% in 2010 up from 8.3% in 19504. The growth is projected to reach around 19.9% by 2030 and 21.2% by the year 2050. However, the research also found out that as the aging…
13 pages (3263 words)
Impact of NAFTA on the US economy
economy over a period of time with respect to U.S. trade balance, employments, jobs, and wages. NAFTA and its impact of United States Economy According to Teslik (2009) NAFTA, implemented in January 1994, and signed by Democratic President Bill Clinton, is a trilateral free trade deal between United States, Canada, and Mexico. The primary objective of the agreement is to eliminate several tariffs on products traded among the United States, Mexico, and Canada. Terms of the agreement were aimed to eliminate these tariffs in a gradual manner. The agreement was not fully implemented before 1…
4 pages (1004 words)
discuss and evaluate the problems faced by project managers
The major assumptions have to be documented as they impact the planning and estimation process. Assumptions also imply a degree of risk and hence all members of the team should understand the assumptions involved in project planning. Projects are not only about managing change but also about managing relationships and managing uncertainty (Bourne & Walker, 2005). The construction and defense industries have been the primary users have been the primary users of project management to deliver outcomes. Projects are usually tangible having straightforward “command and control structures” where…
11 pages (2761 words)
US Economy with Mexican Immigrants
It is estimated that the country’s nominal GDP was nearly $14.7 trillion in 2010 and this figure constitutes almost a quarter of global nominal GDP. A high level of output per capita is another prominent feature of the US economy. The US economy normally maintains a stable GDP growth rate and a low unemployment rate. …
6 pages (1506 words)
Review of the Current Macroeconomic Situation in the US
This essay aims to comprehensively observe current set of macroeconomic policies, carried out by American government to tackle the economic consequences of global financial turmoil In the essay, the stability in the price level is regarded the main aspect, that affects healthy economic growth in the country. …
11 pages (2761 words)