The United States Economy

A nation’s economy plays a vital role in how a nation operates. The United States economy faces a large variety of problems in this paper; we will focus on 4 major economic problems, unemployment, inequality, federal debt, and the financial/credit market. All four issues are interconnected in some way with deep social and economic implications. These issues were emphasized during the Great Recession that hit the U.S. economy in 2007.In the following paper, we will look at each of the four topics individually as well as look at how each plays a significant role in one another’s overall impact on the U.S. economy as well as individuals in the United States. The United States plays a crucial role in the world economy, meaning that every issue and difficulty faced the United States economy has implications far outside the U.S., understanding how these issues relate to one another sheds insight into just how connected every area of the economy actually is.

Gross Domestic Product, also known as GDP, is defined as the dollar value of all final goods and service produced within the border of a country during a specific period of time, typically in one year. GDP measures the value for the whole country, and it also changes quickly. We can take a look at the trends of US GDP in the website of the U.S. Bureau of Economic Analysis.

As you all know, the United States of America is undergoing the most severe economic period since the Great Depression of the 1929-1933. Like then, the current economy is linked to several internal concerns, but is also influenced by several external features, mostly revealed by its economic relationships with the various international partners. At this level, it is necessary to understand the national economy as the intersection of national politics, national economic affairs, but also global politics and economy. Today, in the era of globalization, not the United States or another country, can live and function in an isolated context.

Gross Domestic Product, or GDP, is the total market value of final goods and services produced within an economy in a given year. It is the most common measure of an economy’s total output.

From what I can gather ,It seems that presently the United States is experiencing what some say is the longest economic expansion in history, and shows little sign of weakening. Rising productivity continues to fuel strong GDP growth, while inflation and unemployment remain near thirty-year lows. The stock market has emerged from some all- time lows but now continues with record-shattering highs. More than eight years into this expansion, the U.S. economy still seems to be running strong yet, in the public mind at least, there is a dark cloud on the horizon that seems to overshadow and create a little static called

As the economy is ever changing, it has influenced many differences between the lives of earlier Americans and the lives we live today. Women have not always been present in the workforce. Clear gender roles had been defined to split men and women’s work into separate duties. The differences of careers and duties led to the division of social “classes,” including the upper class, middle class, and lower class. The type of employment and intangible class ranking visibly defined the lifestyles families lived. The dynamic status of the American economy has had a great effect on the lifestyle of and employment within American families.

Throughout American history, the role of the government in the economy has been increasingly brought to the forefront. This is because there are conflicting views about their responsibilities in these areas. As they are one component, that will have an impact on growth and the ability of private enterprises to expand. Yet, limiting their amounts of influence has always been a critical factor with many firms claiming that they can overregulate different areas. (Langran, 2007, pp. 4 10) ("Over Regulated in America," 2012)

Gross Domestic Product is the curative measure of a nation’s total economic activity. It represents the monetary value of all goods and services produced within a nation’s geographic borders over a specified period of time. In other words, it’s how to tell how the economy of a country is doing. It is the total dollar valued of all goods and services; the size of the economy usually in a given year. GDP first came into use in 1937 in a report to the US Congress in response to the Great Depression, after Russian economist Simon Kuznets conceived the system of measurement. The system used before was the Gross National Product (GNP). It was widely adopted in 1944 as the standard means to measure national economist.

As indicated by the Bureau of Economic Analysis (BEA), add up to generation in the U.S. economy developed at a 2.1% clasp in the second from last quarter of 2015. In the second quarter, genuine (GDP) was modified up to 3.9% development. There are a few issues with depending on GDP to gage financial wellbeing, yet these are as yet promising signs for a nation battling through the slowest post-retreat recuperation in its history.

The year 2008 was marked by an economic crisis in the United States that had international repercussions. Many events are cited as instigators of the subprime mortgage crisis, however, in the United States, the crisis was caused by three main factors: poor lending practices, the dot-com bubble burst and the after-effects of 9/11. Together, these factors led to the creation of a housing bubble that burst in 2008. A housing bubble is “defined by rapid increases in the valuations of real property until unsustainable levels are reached in relation to incomes and other indicators of affordability” (Bianco, 2008).

The United States is currently experiencing a slow recovery from the recession of 2008-09. The current unemployment rate is 7.7%, which is the lowest level since December of 2008 (BLS, 2012). However, this rate is believed to higher than the rate that would occur if the economy was operating at peak efficiency, and it is also believed that there are structural issues still underpinning this performance. For example, the number of Americans who have exited the work force as the result of prolonged unemployment is believed to be higher than usual. In addition, the Congressional Budget Office (CBO, 2012) notes that long-term unemployment of greater than 26 weeks is at a much higher rate than normal, which will have adverse long-run effects on the economy, since workers with long-term unemployment often find their career paths derailed.

The issues I would like to gear my focus on is the Economic issues that we are living with in the United States. In today’s society one may notice by watching the news that the United States is actually facing economic disaster on a scale on few has ever experienced. Some issues I would believe to be a problem is that we literally no longer produce what we need to sustain ourselves to continue to thrive. Also we are failing to even acknowledge predatory foreign trade practices that are undermining the U.S. industry. Discussing the problem is the first step when attempting to resolve a major problem our government has dealing with the economy. With the United State no longer producing what the need to stay alive recognize that we import

Gross domestic product, or Gross Domestic Product is the estimation of the considerable number of merchandise and administrations delivered in a nation. The Nominal Gross Domestic Product measures the estimation of the considerable number of merchandise and administrations created communicated in current costs. Then again, Real Gross Domestic Product measures the estimation of the considerable number of merchandise and administrations created communicated in the costs of some base year. An illustration:

Concerns over the status of prisons have been increasing as the days go by. In the recent past, the economic situation of the United States has degraded thus leading to some of the critical issues facing correctional facilities unaddressed. This effect in the economy has led to prioritization of needs with which the government ought to attend. Surprisingly, the correctional facilities have not been on the forefront in the priority list. This conclusion is a result of the poor conditions of these facilities of the United States. Therefore, this paper that will look into the major challenges prisons facing in the United States.

Real GDP takes into account inflation, and therefore is a more accurate reflection of economic vitality (1). One way in which GDP can reveal a country’s economic situation is a comparison of potential GDP and real GDP. Potential GDP is a metric that calculates what an ideal economy would produce if it were operating at full efficiency. The difference between the United States’ potential and realized GDP, known as the output gap, since the year 2004 is depicted below (2).