Economic Crisis at U.S and Solution for Improving It

Abstract

United State of America is world largest national economy facing acute economic crises in recent times. Lifestyle of common man at has reduced its quantum and quality due to economic crisis. This paper aims at discussing problems U.S economy facing in recent times. It has highlighted major problems of U.S economy crises and suggests policies to improving it. Recommendation possibilities and what are the loopholes in suggested policies are elaborated as well.

Table of Contents

Abstract2

Introduction3

Discussion4

Unemployment4

U.S national debt4

War in the Middle East5

Gulf of Mexico oil spill5

Federal Reserves5

Illegal Immigration6

Globalization6

Conclusion6

Recommmendation7

Recommendation possibilities8

References8

Economic Crisis at U.S and Solution for Improving It

Introduction

United States economy is world's largest economy and with nominal GDP over $15 trillion in 2011 which is around quarter of nominal global GDP. U.S has maintained stable G.D.P over the years and economy gradually growing towards improvements, creating job opportunities, and reducing the unemployment rate. American families still are covered with economic side-back, unemployment rate remains relatively high, persistently household wealth losses, and overwhelming debt burdens.

The United States is facing economic disaster on a scale few nations have ever experienced. (Heffner , 2012). United States economically jumped down as second class countries which perceived them to be superpower due to their many issues. They are not producing that much as they were in term of their sustainability towards improvising rather them going towards more imports.

Discussion

Economic recession around the world has given modern economy new outlook including big giant economies like United States of America. US economy facing a downfall at a sever rate that previous decades. U.S is covered with dozens of threats around. In recent times economic growth remain to be low. By, fourth quarter 2011; GDP grew at an annual rate of 2.8 percent but business investment dropped heavily by 14 percent, while export growth remains at same pace of 4.7 percent growth.

Unemployment

Unemployment rate at U.S has increased over the years. Millions of Americans are jobless and lost their unemployment benefits. U.S. Senate remains unable to pass for extension of unemployment levels. Unemployment remained to be high and weak job growth with an estimated rate around 8.5 percent in December 2011 and 42.6 percent of the unemployed searching for job for more than six months.

U.S national debt

Several economic crisis being created due to going towards huge government debt financing relative to national income. It's eliminating private capital formation and putting a setback on productivity growth. Debt financing is done from abroad and as a result all future income growth is spending in paying off interests on foreign-held federal debt.

War in the Middle East

Economic setback in U.S.A is also an outcome of war in the Middle East. They spend over 247 billion dollars on war against Afghanistan and then they have also spent hundreds of billions of dollars fighting the war in Iraq. Economy of U.S facing a severe problem as a result of this war like oil flow being cut down by Iran and facing higher oil prices crisis and as well as NATO ...