The Unites States economy has a great effect on the economies of many countries around the world. According to Corona (2012), “It is apparent that our problems are a reflection of our problems in the European Union and a softening of the Chinese economy.” The United States is the largest trading partner with China and it is not in the best interest of China for the U.S economy to be suffering. Most economists agree that when the U.S economy is booming it has the ripple effect that positively impacts the global economy. The TARP legislation has been viewed as a negative variable that has not served its purpose of helping the economic system. These governmental policies were focused on saving the banking industry rather than the general business community.
Americans’ mistrust in what the government is doing is the main cause of the bad economic situation encountered in U.S. today. People are getting frustrated at the slow reaction of the governmental official attacking the issues and problems in the economy. A major drawback of the new governmental policies is that they are increasing the taxes for business entities. This is causing a lot of multinational companies to move their operations oversee where they can obtain cheaper labor costs and preferential tax treatments. A lot of companies in the U.S are riding tough economic times and the government is not doing anything to gain their confidence that they can continue to operate in America in a profitable manner. The Unites States has to take serious steps towards fixing its economy.