An Assessment of Current Economic Conditions - Essay Sample

Introduction

The economy of the United States continues to remain resilient despite facing various challenges that reduce the speed at which the economy grows. The success of any economy is determined by multiple factors that influence each other for the success of the company. The leaders of the government have been trying to come up with strategies to help improve the performance of the economy. For the last three years, the American economy has been performing well due to the strategy that the current president of the United States has come up with. The performance of the economy determines the level the quality of life that the people lives.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

The American economy faced any challenges that lowered its performance rapidly. Among the challenges that have been affecting the economy of the United States is the competition of the products that are produced by American companies (Clark 203). The exports of American produced has been facing stiff competition for products produced in other different parts of the world especially from China. Exports earn country taxes from companies that produce goods for export. The companies also employ many people hence reducing the rate of unemployment. The country has been facing the challenge of unemployment because the companies that used to employ them have closed down due to stiff competition of its products.

American economy used to be the largest economy in the world but over the years other economies have come up and performed better than the economy of the United States (Kaplan). The Chinese economy is the largest economy in the world because the majority of the products sold in the world including in the United States are manufactured in; therefore, the Chinese government enjoys the taxes from the companies. Poverty levels in China have reduced significantly because people especially the youth are able to secure jobs from the manufacturing company.

The job market in the United States has been improving in terms of performance according to statistics (Kaplan). The graph below indicates the unemployment rate in the US for the last couple of years.

The continuous reduction of the unemployment rate is an indication that the economy has been performing well for the last couple of years (Majumdar). Economists believe that the decrease in the unemployment rate can be associated with the emergence of new companies especially technology companies that give employment opportunities helping then and the governed earn income. According to the economic indicators, as shown in the figure below, the American economy will continue to grow following the trend.

The economy can accelerate for some time them the growth reduces significantly over a short period of time. The economic growth accelerates then slows because it reaches its optimum level where it reaches a level where it can no longer grow (Majumdar). The projector of the economic growth has been enabled by regulation of imports entering the country; hence the local companies are protected from stiff competition by foreign companies that produce similar products at standardized costs. The economy of the United States is expected to keep growing due to increased local market demand.

The pricing level of commodities in the United States does not regulate the price at which the commodities are sold. Having a free market allow companies to compete in terms of the prices at which they sell their products and the quality of the products (Cheon, Maltz, and Kevin). The consumers enjoy by getting quality products from the manufacturers. The current threat to the American economy remains the competition of products manufactured in the United States by other products that are sold cheaply. Consumers prefer to buy cheap products as opposed to the products produced in the United States with high prices.

The fiscal policy of the United States is for the government to invest resources in improving the business of carrying out business in the United States (Yellen). The government believes that by creating a conducive business environment where companies can manufacture products with minimal resources. The fiscal policy aims at stimulating economic development for general economic growth. The government believes that the taxes from the company will pay back the money invested by the company. The limitation of the policy is the lack of enough resources to invest by the government.

The monetary policy pursued by the government is ensuring that the economy regains to normal where the government has enough resources to serve the people, and the private sector is performing well in a manner that it provides employment opportunities to job seekers. The future of the United States brings hope to the people because the government has put up measures to ensure that it performs well. Among the measures that the government has put up is investing in innovations that will transform the world. The technologies will make the products manufactured in the United States to be competitive in the world market. In conclusion, the economy of the United States continues to face various challenges. The government is responding by coming up with mitigating measures to help the economy recover

Works Cited

Cheon, SangHyun, Arnold Maltz, and Kevin Dooley. "The link between the economic and environmental performance of the top 10 US ports." Maritime Policy & Management 44.2 (2017): 227-247.

Clark, Gordon L. "US regional transformation in the context of international economic competition 1." Deindustrialization and Regional Economic Transformation. Routledge, 2017. 199-302.

Kaplan, Robert. "Assessment Of Current Economic Conditions And Implications For Monetary Policy." Dallasfed.Org, 2017, https://www.dallasfed.org/news/speeches/kaplan/2017/rsk170713.aspx.

Majumdar, Rumki. "U.S. Economy At A Glance | U.S. Bureau Of Economic Analysis (BEA)." Bea.Gov, 2018, https://www.bea.gov/news/glance.

Schaltegger, Stefan, and Marcus Wagner. Managing the business case for sustainability: The integration of social, environmental and economic performance. Routledge, 2017.

Yellen, Janet. "US Fiscal Policy 'Too Stimulative': Business Economists." Phys.Org, 2017, https://phys.org/news/2018-02-fiscal-policy-business-economists.html.