Current State of U.S. Economy

by akiaan16

The US Economy has been experiencing the set-back for quite long. This has been mainly because of the economic disaster the country has gone through but the country is on the path of recovering now. With the growing economic growth, decrease in the unemployment, a mild consumer price-inflation, cheaper gas availability and the stock market at an all-time high, there is an increased optimism about the U.S. economy. The labour market recovery continues with the rise in Employment population ration and the weekly hours worked by the labour force in the county. Though the recovery process is growing but still it is at an all-time low in the past 4 decades and still has a lot many challenges from within the county as well as from abroad.
The major challenges that the economy is facing can be summarised with respect to the areas, one of that is the increased debt that is mainly because of the major borrowings that the current Government took. Other major threats have been the Russian intervention in Ukraine and the rise of the Islamic State, ISIS. This has led to the increased uncertainty in the U.S. economy. Another challenge for the U.S. economy has been in the areas of healthcare and immigration as there have been a large number of disputes over the policies in these areas. The major ill effect of the Obamacare has been the reduction in the productivity. Since there has been an increase in the cost of full-employment, employers are motivated to offer part-time jobs. This is ultimately leading to lower productivity and less number of labour force opting for health care insurances.
The strong dollar continues to discourage the American Exports. The country no longer produces what it needs to sustain. Its Import largely outweighs the Exports. Over the last quarter growth, it was expected that the Federal Reserve will increase the interest rate at its upcoming meeting but in the last meeting held in November 2015, it has announced today that it will keep interest rates at their record low of 0-0.25%.The Economy is indebted under massive debts, the repayment of which is a major issue that needs to be addressed.
Finally, with the conditions the U.S. Economy is going through, only promoting the open markets and economic growth will not do but proper allocation of resources and reforms need to be introduced. Also, there is a need to spread sufficient knowledge of the country’s capacity and capital so as to facilitate self-sustaining production. Investment in infrastructure and technologies are the tools that can make the manufacturing in America competitive with the rest of the World and thereby a drastic improvement in the coutry’s Economy.