Economics Stats

Economics Stats

Current Economic Situation

If one looks at the current economic situation, one of more defining aspects of economic scenario post 2008 has been the extent of the recession and how it has impacted the economy after it. One of the greater concerns is that soaring unemployment and the lower consumer confidence (FRB: Economic Research & Data, 2012). The lack of customer confidence can be gauged by the fact that almost half of the American are of point of view that USA is still in constant flux of recession. The debt that has been taken at Government and private levels is on the higher side. One of the reasons for pro longed recession is perceived to be this higher amount of debt that has been taken. GDP has been constantly showing declining trends after 2008 and until 2010, it did not reached the previous level of production. There are economists who are of view that USA GDP rate is 5.5% below the potential, which is almost 8.5%. (FRB: Economic Research & Data, 2012)

Possible Strategies that Could Improve the Economy

If one wants to improve the overall quality of the economy or to be precise, increase the economic production, Federal Government could do well if expansionary fiscal policy is applied. According to IMF, one of the better strategies that could be implemented by the Government is that it can decrease the overall unemployment. The employment can be increased by spending in such sectors such as industrial reforms (FRB: Economic Research & Data, 2012). Government can also do well if some training initiatives are initiated at some level that increases the overall production. It can be invested in the skills such as training for the unemployed. Another thing that can be done is to make sure that social security nets can be increased. One thing that has to be kept in mind that during this period, one has to make sure that there are enough revenues to make sure these activities can be carried out. Even when debt payments are on the higher side, focus should be on achieving long term recovery of the economy rather than achieving short term goals (FRB: Economic Research & Data, 2012).

Implementation of Anti Trust Law

There were many instances in last 50 years when there was an attempt by Government to make sure that there were no creation of monopolies created and there was efficiency ...