Assignment: The Economy, Monetary Policy and Monopolies.



Assignment: The Economy, Monetary Policy and Monopolies.

US Economy

The US economy has observed serious shocks in the recent times. There are drastic changes in the economic indicators which also reveal the impact of economic recession initiating in 2008. GPD growth rate was at 1.9 in 2007 which fell negative in subsequent two years and recovered in 2010. When we look at oil prices in terms of inflation, we realize that this is one of the strongest components why the economy is collapsing and now we are on tipping end of a dangerous bout of deflation. The problem of deflation is that it renders any and all debts dangerous and a country as indebted as the United States of America, simply cannot risk that outcome of it. The economy is affected by many factors that determine if it is strong enough or simply too weak. These factors have to do with buyers consuming goods and services and how often they do this. Do the goods and services that are consumed by people create wealth, jobs, and a better overall economy for a country?

Last year, the Obama administration had also faced rising debt crisis. The public debt was $36.3 billion in 2007 which rose to $69.7 billion in 2012. The current international economic turmoil represents one of the most destructive economic crises in the last century, perhaps more shocking than ever. General international economic system, nearly all national economies, and especially vulnerable transition economies of Southeast Europe affected. Clearly, small and medium-sized companies particularly affected by market turbulence and its position are clearly representing the adverse economic circumstances of the newly created world (Mangir, et al., 2011, Pp. 122). The problems reflected in a reduction of demand, poor access to export markets and in capital markets that reserved for recovery of the economies that have caused the current economic crisis (Menon & Chongvilaivan, 2011, Pp. 107).

In the wake of such circumstances, first of all, US government can get the inflation under control and give more subsidies to encourage spending from the part of the consumer and general public. As the purchasing power of the consumer will rise, they will tend to spend more and their spending will result in employment opportunities. Manufacturing is one sector which can significantly increase the employment opportunities. As the production will increase, price will go down, consumer will spend more. The jobs created in the manufacturing sector are capable to fill a pivot gap in the US economy. However, the government should endeavor to attract investment in the country as many companies are relocating to China where cheap labor is available. In the long run, it will have serious impact on our economy.

U.S. vs. BXBS -Montana

Under the direction of Attorney General of the state of Montana and the United States, a civil anti-trust action was taken to direct an anticompetitive agreement between the Blue Cross and Blue shield of Montana and a group of companies representing the hospitals including; Bozeman ...