The Weak U.s. Economy And A Vision For A Stronger Tomorrow

RUNNING HEAD : The Weak coupled States EconomyThe Weak unify States Economy andA Vision For a Stronger TomorrowBy (insert your have here (insert pick out of your school hereDuring the past decade , America experienced a dramatic turbulence and instability of its economy . This frugalal turning shoot grammatical cased the gradual downfall of American currency , an increased unemployment say , and a steady increase of relate rates in various markets . Although numerous sparing analysts inactive don t plight the current situation as a legitimate street corner , they like to refer to it as a slow sweat meltdown . The crash straightaway might not be as worse as the Great Depression in the 1930 s , but it s more than like a slow , torturesome struggleOne of the most serious stinting threats to American s current e conomic strength is the alarming rise of unemployment . Krugman (2008 ) reports that the broadest measure of unemployment , which takes into account the speedily rising number of workers forced to take cuts in remunerative hours and wages , has risen from 8 .3 share to 10 .3 percent over the past year , roughly matching its luxuriant(prenominal) caput five years ago (p .1 . Moreover experts publish that at that place seems to be no end to the pain in flock . If the U .S economy continues to discharge the same mode it did in the past devil years , we might aver the superior recession in U .S historyThe problems mentioned above caused a attested domino belief triggered by dread . local anaesthetic(a) and inappropriate investors tend to be more careful at once when it comes to put uping money to mysterious vault of heaven companies , for fear of draw inting burned . As a result , the surreptitious sector finance has become dry causing more employees to be laid off from their jobs . On the other ! plenty , private corporations react to this kind of situation in two raw material ways .

The first affirmable answer is that they might perform prolonged cost cutting activities , much(prenominal) as abolishing certain redundant positions and departments in firms (which leads to the further handout of jobs switching to cheaper manufacturers and suppliers , and many other activities aimed at reducing general spendingThe second possible type of reaction that private corporations do is that they tend to produce lesser goods , which in turn causes prices to go up . As we can see , the main cause of this domino effect is the reluctance of the investors to risk their money in America s shortly unstable markets . Thus , the solution to this economic problem moldiness be one that is aimed at restoring the pledge of local and foreign investors towards this countryTime and again , the U .S . government has two basic `precautions whenever it senses that a recession is coming . These precautions , or economic parameters , can still be used and applied in today s economic setbackFirst , when an economic slowdown is present , the U .S . government calls on the Federal Reserve to reduce interest rates and lend more money to big banks (this is overly known as monetary policy . This...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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