Economic Problems of U.S

Economic Problems of U.S

Introduction

Economics is an element of social science that is unified and comprehensive in its approach regarding the understanding of the social world. The government of United States is struggling with economic disasters on quiet a large scale Majority of the mainstreams are ignorant of the manifested signs of such crises. We are unable to trace them back to their roots and to detect ways of stopping them. While the United States of America continues to enjoy the superpower blasphemy, the fact that it has become a second class country in few aspects cannot be denied.

The United States economy has demonstrated a plodding decline ever since 2007. Job cut, Pension funding, public debt are some of the chief problems. There is no denial to the fact that the market has enhanced to a positive degree, but things have still not alleviated to the level preferred.

Discussion

The three most significant problems faced by United States are public depth, pension funding dilemma and energy crisis. These problems pave the way for other economic problems such as an unsustainable long-run budget debit and unrelenting rate of elevated unemployment.

These economic issues aggressively demand framework of actions in form of fiscal policies that can help in eradication of such pragmatic economic issues.

How Financial System Determines The Economic Conditions?

Development of an economy is moderately dependent on the financial system of the country. The system aids in mediating the money transactions to the economic dimensions that needs it the most. The financial system has numerous crucial roles to play that aids in facilitating the transfer of money to important areas for sustainable growth of economy (Van Lear, 2010)

Effective and Sound financial structure is significant for development and growth of the economy. The basic role of these financial mediators and financial markets is to channel the flow of funds from individuals who have huge savings of it to the individuals who can make more productive use of these savings to generate maximum economic output. This escorts to effectual allocation of financial resources and hence a faster economic growth. Therefore its basically the financial structure of the country that determines its economic growth (Hermes and Lensink, 1996)

Productivity

Productivity is something that actually determines the gross domestic power (GDP) of a country. It can have positive as well as detrimental effects on the economy of the country. United States has failed to adequately produce what population needs to ensure sustainability. The rate of import has extensively exceeded the rate of export.

Production is an extensive term. Labor production is an important element of determining the economic growth. Labor yield refers to the amount of services or goods that a worker can produce. Quality human resource is an important aspect to it. Economists by and large agree that three things drive productivity: human capital, technology, and physical capital.

The federal government of United States has failed to keep their expenditures under controland hence this has lead to a massive burden of debt .One fourth of this debt has ...