America has progressed well in the past few years and many citizens consider that the country is out of recession and will progress well with a good economy in the coming years. I believe that America has emerged from the Great recession and its economic condition has improved since the last six years. The GDP has grown by 4.6% in the last quarter, and national unemployment rate has fallen by 5.9% in September 2014 which is a sign of prosperity . In modern America the gas prices are down and the stocks markets have seen a marginal increase making people’s pockets substantially fatter.
Most of these conditions are sufficient to evaluate the prosperity of America. Compared to 2005 – 06, the energy production in America has seen a 40% rise which is indeed a contributing factor for the country’s GDP. Every field that contributes to the economy of the country is worried about it contribution, however, America has seen a tremendous change in reducing the debt and spending in line with its future income. The process for the remarkable change happened in just 4 years from the bankruptcy of Lehman Brothers and bailout of AIG in September 2008. This process completed in 2008 by rebalancing and deleveraging and the U.S. economy is ready to grow at a healthy pace . Currently, I believe that America is in a good position for the fiscal year 2015 as the government is believed to have a completely balanced operating budget that would exclude the interest expense. Considering the present economic conditions, I believe America would post a GDP of more than 3.5%.
One of the major debates that is going on in America is about the U.S. federal budget shortage that was massively expanded at the end of President George W. Bush’s second term with Treasury Secretary Paulson’s $1 trillion emergency spending request to fight the financial crisis . Before the November 2008 presidential election, this expenditure was approved by the Congress and since then the central budget shortage emaciated in fiscal year 2009 at $1.4 trillion, which is equivalent to 10% of GDP. The other debate in question is the study of financial markets that is taken over by Voltaire’s Dr. Pangloss, who insisted that Americans live in the best of all possible worlds . On the other hand during late 1980’s finance economists, were debating that to get the right amounts for the financial markets the corporate chieftains must maximize their stock prices not only for themselves but also for the economy. Nobuhiro Kiyotaki and John Moore of the London School of Economics, debated that the prices of assets such as real estate suffer self-reinforcing plunges that in turn depress the economy as a whole . However, there has been no change even at the core of economics.
I am a completely optimistic regarding America’s future, as the U.S. economy seems composed for its best presentation after surviving the difficulties of the recession in 2008 and 2009. After taking so many years to recover, the economy has basically been put back on right track from the unwarranted damages received through the economic anxiety in 2008 and 2009. Though, 72% of Americans still think they are in a recession, down just barely from 76% as compared to 2012 , I believe that this is a major achievement from the world’s super power country. Many perceive that recessions are an optimal response to fluctuations in the rate of technological progress , I realize that technology as an economic factor can help America to increase its financial status and at the same time contribute towards the GDP while ensuring that the GDP progresses from the current 3.5% to the next level.
Works Cited
Krugman, Paul. http://www.nytimes.com/. 02 September 2009. Web. 03 December 2014. <http://www.nytimes.com/2009/09/06/magazine/06Economic-t.html?pagewanted=all&_r=1&>.
Primack, Dan. If the U.S. economy is so good, why do we feel so bad? 30 October 2014. Web. 03 December 2014. <http://fortune.com/2014/10/30/us-economic-midterm-voters-reality/>.
Putnam, Blu. http://www.usnews.com/. 15 January 2014. Web. 04 December 2014. <http://www.usnews.com/opinion/articles/2014/01/15/5-reasons-2014-is-looking-good-for-the-us-economy>.
