The U.S. Free-Enterprise Economy Essay

The U.S. Free-Enterprise Economy Essay
The United States is known for having a free–enterprise economy where a business can be
conducted freely without government involved. In free–enterprise economies, goods and services
are traded openly and are produced depending on the demand. People who support this type of
economy believe it motivates businesses to make money and welcome new ideas. An important part
of the economy is to have full employment and low inflation. Keynesianism and monetarism are
both ways to stabilize the economy and promote growth when need. In keynesianism, government
uses fiscal policy which is a list of policies that government spending and taxing can be used to
improve the performance of an economy. The government produces stabilization by taxing and ...
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This policy is results in faster results to speed up the economy for the short term. Fiscal Policy is
later used to develop a plan of yearly actions and is a long term way to stabilize the economy. The
next idea to stabilize the economy is a theory called monetarism which is the belief that if
government did not interfere with the market economy that employment would be high and inflation
low. Followers believe the government is the reason of downturns such as the recent recession. Both
of these policies, keynesianism and monetarism are important and supported by the citizens. These
ideas of how economy should be conducted both want to ensure a stable economy for the people.
That's where comparisons end and differences began. Monetarists want absolute freedom in the
economy from government interference. They insist that Keynesianism causes the downturns
because government it so worried about stabilizing the economy and doesn't let it fully growth.
Keynestists believe government should help aid the economy and can track it's progress. Therefore a
more structured policy is in place to provide aid in keeping stability from outside interferences.
Without the government watching, numerous problem can arise such are large businesses taking
over the small businesses which can lead to businesses closing and loss of jobs and no one wants to
start a business with that as a possibility. Balancing the national budget is one of the
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Boom Of The U.s. And World Economies
Boom and Bust in the U.S. and World Economies
New business and production methods along with progressive business philosophies allowed
manufacturers to boost turnover and to make large profits which they plowed back into new
factories and wage rises. Department store and service station chains used massive buying power
and operating efficiencies to lower prices while increasing service and choice, helping wages to go
further. Henry Ford used his huge buying power to setup discount grocery stores selling cheap
groceries for his employees, much to the annoyance of local store owners.
Increased incomes, along with the introduction of credit funded a huge increase in consumer
spending. Only some of the increased affluence found its way into insurance as a provision for
retirement.
There was an economic recession in 1921 but it was allowed to run its course without political
interference and as a result it was over in 18 months. As the economy picked up, easy credit and
speculation created stock market and property bubbles that had devastating effects when they
eventually ended.
People living in the cities and areas of industry benefited most from the increased prosperity
although there were arguments to the contrary. Those living in rural areas did not benefit to the same
extent, and this was made worse by widespread drought. This encouraged population movement
from rural areas to cities, a trend which has continued down to the present day. In 1926 alone the
Department of

U.s. Economy And Fiscal Policy
Economic update The U.S. economy appears to be in upward swing following three consecutive
quarters of weak GDP. Underpinning third quarter growth of 3.5% was robust consumption, which
posted a 3% annual change. Expectations for the fourth quarter are for 1.9% growth, placing the
yearly change at 1.6%. Although 2016 will match the weakest yearly growth rate since the financial
crisis ended, the focus is clearly on the strength in the past two quarters and outlook over the next
three years. The election of Donald Trump as our next president surprised many and significantly
widened the distribution of possible outcomes for the U.S. economy compared to what was expected
prior to the election. Some have a high degree of optimism that ... Show more content on
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This one is occurring during the eighth year of the expansion and the economy is hitting many
cyclical headwinds, such as rising interest rates, a stronger dollar, near full employment, and higher
inflation. IG taxable Investment grade corporates were not as affected by the post–election price
free–fall experienced by other select sectors of the fixed income markets. Notwithstanding the
correction in rates, corporates delivered a respectable total return in 2016. The Bloomberg Barclay's
Intermediate Corporate Index, which is a proxy for our investment grade strategy focus, earned 4%
last year, outperforming the comparable Treasury index, which posted a 1% total return. As we
begin the New Year, nominal rates are attractive, and corporates continue to offer a meaningful yield
advantage over Treasuries. While valuations have narrowed from a year ago, current credit spreads
are in line with multi–year averages and have room to compress further. The compelling entry point
is further buoyed by expectations for lower net supply, due in part to a shallower pipeline of M&A
activity and a heavy maturity schedule. We expect intermediate investment grade corporates to earn
between 2%–3% this year, outpacing Treasuries. We continue to have a sanguine view on credit and
are overweight lower quality tiers. Improving economic fundamentals should accrue to corporate
profitability as forecasts target 7% and

Bank Regulations : The Backbone Of The U.s. Economy
As I have stated before bank regulations are in place to be the backbone of the U.S. economy.
Therefore, we live in a system that affects us every day. Banks have certain requirements and
instruments that help them stay open and be profitable. In the 1990s, interstate banking was finally
permitted to create nationwide banks of unprecedented size. Congress 's also attempted to force
banks to make home loans to people who had limited creditworthiness. These regulations are a
major factor in why as many banks failing and disappearing today as we did pre Federal Reserve
System.
Bank regulations are based on a general core of principles. Banks have two important economic
functions. First, they operate a payments system, in which a modern ... Show more content on
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Banks make their profits and cover their expenses simply by charging borrowers more for loans than
they pay depositors to keep their money in the bank. So simply put, charging high interest rates and
distributing a low interest return. The intermediation function of banks is extremely important
because it helped to finance the American economy.
Two major focuses of banking supervision and regulation are the safety and soundness of financial
institutions and compliance with consumer protection laws. In order to measure the safety and
soundness of a bank, an examiner's job is to provide on–site examination review of the bank 's
performance based on its financial condition and current management, as well as its compliance
with regulations. The rating system used by the examiner is called the CAMELS rating system
which helps measure the safety and soundness of a bank. Each letter of the CAMELS system stands
for one of the six components of a bank's condition: capital adequacy, asset quality, management,
earnings, liquidity and sensitivity to market risk. The first component, capacity measures the
borrower's ability to pay a debt, this component measures both the borrower's income to debt ratio
and the payment source of the borrower. Next is collateral, collateral reviews the bank's options if
the loan is not paid based on the asset 's that a borrower may possess. Then the

Essay on U.S. Must Manage Debt to Help the World's Economy
The United States once had the largest economy in the entire world, and when there are problems
with the US economy shock waves can be felt all over the world. The global economy is inter–
connected on several levels due to the amount of international trade which occurs. If the United
States does not find a way to manage its debt, or find a way to reduce the debt, it would increase the
cost of finance for business because of the increase in interest rates. This could lead to high
inflation. The stock market would also suffer badly as investors might feel that investing in the US
market was too risky. This would cause the stock markets to fall as investors would take their money
to other countries, or invest in gold; which many people have ... Show more content on
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A London–based Wall Street Journal reporter, Charles Forelle warned the enthusiasm over investing
will change dramatically if the shutdown continues, and especially if the U.S. government defaults
on its debt. European markets are currently the most susceptible, and any delay in the stabilizing the
US market will delay economic recovery there as well (Krugman, 1999). According to a senior
International Monetary Fund official, in case of a U.S. debt default the entire global economy will
be negatively affected, Stock markets crashes in many countries is a distinct possibility which will
add to the problems of the recession that most of the world is currently undergoing. More damaging
could be the failure to raise the debt ceiling which could cause a default in most economies is
increasing ambiguity to a still shaky global economy. Although the U.S. can probably sustain a short
economic shutdown, a prolonged one will seriously impair the financial system leading to the
collapse of the global economy. A major portion of the operations of the U.S government were shut
down completely after the Senate could not reach an agreement on government spending at the start
of the new financial year. Republicans are not approving even a temporary spending bill unless there
are radical changes in Obama's 2010 health care law. Both parties are imposing conditions for
increasing the government's $16.7 trillion

U.s. Trade And Economy
US TRADE AND ECONOMY
Then and Now
Oshin Nandal
1001111637
EXECUTIVE SUMMARY
As we know US went from being a net exporter to a net importer in a short span of time. Currently
US economy is strong but with lots of debt. These changes in trade gap and debt were caused
basically due to other developing nations coming up with low cost manufacturing system and thus
US ended importing products from other countries. Also many US manufacturers moved their
factories abroad due to cheap labor and other services. Some companies are considering reshoring
and bringing at least some part of the process back to US as labor cost and other services are rising
in other countries. This paper gives a detailed account of all the factors ... Show more content on
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This recovery of the European and Japanese economies, and the advancement of industrial limit in
the developing countries unavoidably diminished the share that United States had in world exports
and output. By the 1970s, exchange examples reflecting fundamental similar point of interest had
been restored, and the United States was at the end of the day a merchant of buyer products. The
United States global speculation position soon after World War II was very small.
United States resources in 1950 totaled $17.5 billion and investment done outside was $8 billion.
During this time US was open to all trade options, but had a small part as an owner in international
assets. The resources and other factors have been growing since 1950 at a constant rate of about
10% an year. This served as an internationalization of the investments during the period, which
United States lost its powerful position in world trade market. US was making surpluses in mid
1960's in areas such as trade capital stock, horticulture and chemicals, and was falling behind in
buyer things and nonagricultural mechanical supplies and materials. All automobile products were
surplus at first, but then changed to deficit in 1968 in trade market. (Please refer the table)(Feldstein)
TRADE BALANCES (U.S.) As of late the span of the exchange gap or

U.S. Economy in 1800s
The scale of textile factories changed during this period. The small mills with a few dozen spindles
and looms that characterized the initial period of the industry gave way to larger complexes. This
pattern began with the Boston Associates complex at Waltham, Massachusetts. Waltham itself soon
appeared small as the Boston Associates developed Lowell on the Merrimac River. The population
of Lowell increased from 2,500 in 1826 to 35,000 in 1850. The Lowell Machine Shop became a
center for innovation not only in textile machinery but waterpower technology as well. It also
trained a generation of industrial engineers that spread throughout the economy. Lowell attracted
further international attention because of its labor system that employed ... Show more content on
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In 1775, Daniel Boone blazed the Cumberland Trail, and in 1783 the Treaty of Paris gave the newly
formed United States all lands west to the Mississippi River. With the end of the war, American
interest in the West reached a new level of intensity. This second great migration had significant
impact on American society. it is clear that this westward movement was a major factor in the
nation's subsequent development. And that was certainly the case where American Christianity was
concerned. In the wake of the Revolution, churches faced three major tasks: (1) organization (2)
reviving vital religion and (3) following the population westward. The future of the Church was
contingent on dealing with all three problems. Churches soon recognized that in such a large area,
the old parish system––which assumed a town––would not work. Concerns that the West would
lapse into barbarism or worse that the Catholic missionaries would reach these people first, created a
crisis atmosphere in some quarters. French Catholics had long been active in the Northwest and
along the Mississippi. People on the frontier were attracted to those who preached a more emotional
faith, and dismissed of the more sophisticated rational faith of the Eastern seaboard. Churches that
proved flexible in seeking these

American Manufacturing and the U.S Economy Essay
For over half a century, American manufacturing has dominated the globe. During this period, many
great American businesses and corporations began. Companies like General
Motors, Levi, and Ford became widely known and promoted. American manufacturing became
synonymous with quality, greatness, and reliability. However, manufacturing in the U.S has started
to plummet as the economy has begun this recession. It may seem as if the country that used to
make everything is really on the edge of making virtually nothing. U.S. jobs in manufacturing have
been vanishing at a fast rate and unemployment percent is on the rise, but despite the vanishing jobs
Americans' productivity is on the rise and Americans still lead the ... Show more content on
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Even with the misfortune with unemployment, Americans still lead the world in manufacturing. But
there is a counterbalance to the drop in total employment, the dramatic rise in productivity.
According to the National Association of Manufacturers, over the past two decades manufacturing
productivity has grown by 94%, which is considerably faster than the rest of the U.S. business
sector, where productivity grew by 38% over the same time period.
Another concept that is brought up by the article is international trade and business. There are a
number of gains to be obtained from international trade, such as lower prices, greater choice, and a
variety of resources. Many of the millions of laid–off workers in recent years ended up shifting into
lower–salaried service jobs, while U.S. manufacturers relocated production facilities to low–cost
countries. The U.S has established great economic trade connections with the rest of the world, and
that has lead to U.S. based plants shifting work over to foreign competitors, such as China, so that
they can have cheap labor. It is much cheaper to have workers overseas however there is the danger
of unemployment. The United States needs to protect the economy from imports, so sometimes a
tariff is applied. A tariff is a tax that is charged on imported goods.
Any tax

The Downfall of the U.S. Auto Market and the Collapse of...
The Downfall of the U.S. Auto Market and the Collapse of the Economy Unemployment is rising
and the entire global economy is falling. The story has become all too common. If there is a negative
direction available to follow, we're definitely taking advantage of the opportunity. Americans
became too accustomed to the period of inflation through the 1990s, and the ongoing recession is
affecting most everyone. The Big Three automakers (GM, Ford and Chrysler) have made massive
cuts to their workforces, and the entire national job market has been upended. My personal life has
been greatly distorted due to these events, after Delphi (contracted by GM) outsourced most of their
jobs and shut down 21 of their 29 plants in the US. In previous ... Show more content on
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In 2008 and 2009, a series of bailouts were provided to General Motors and Chrysler, due to slowing
car sales and massive quarterly losses. Unions buckled due to the fact that they received much
higher wages, and more luxurious benefits than their non–unionized counterparts. In 2006,
Consumer Reports top ten car picks were Japanese (Noe). Parts makers were quick to move jobs
overseas, where laborers were willing to work for much less money. In 2008, GM closed 14
factories, 2,000 dealers, and cut 47,000 employees. All of these factors, among numerous more,
were responsible for the collapse of the economy on a national and global scale. Gasoline prices
soared during the energy crisis which lasted from 2003–2008. Consumers moved from buying
SUV's and trucks to more fuel–efficient cars, such as hybrids. This was especially disconcerting
considering that these larger vehicles were the most profitable for the automakers (MSNBC). The
market which was hardest hit was that of the parts–makers, which saw their cash flow cut in half,
since automakers were rushing to cut production (Economist). GM filed for bankruptcy 32 days
after Chrysler, effectively making GM the fourth–largest company ever to file for bankruptcy
(Carty). According to Darwin Bible, "probably one of the worst things about it has been watching all
the stress on workers' faces and their families' faces" (Carty). Overall mental health is rapidly

U.s. And Global Economy
In 2008 the U.S. and global economy confronted one of the worst crisis in the history. These
financial crisis were considered the worst since the great depression in 1930's. Several events took a
place early in 2007 which led to the economy crash, such as, the massive decrease in home prices in
the United States after it was significantly high. This decline in home mortgage market expanded
rapidly causing massive crisis in the whole United States financial sector (Bullard, Neely, and
Wheelock 2–4). Those crisis had dangerous effects on the stock banking industry, insurance firms,
and Fannie Mae and Freddie Mac, the two most important enterprises commissioned by the
government to assist mortgage lending, and some other mortgage lenders and financial service
organizations. Those crisis generated a decline in banks and financial associations trust of others,
believing that they will never get paid back. They simply stopped offering loans to people who
needed money to buy a house or start a business, which created a massive decline in the home
mortgage market and the whole financial sector of the United States (Havemann 1) There are
number of issues which are believed to be the reason behind the home mortgage market crisis that
occurred in 2008. Firstly the "housing bubble", the home mortgage market problem which our
economy is suffering from right now. It started with the "bursting" of the U.S. housing bubble which
started in 2001 and reached its highest in 2005. The

The Current Status Of The U.s. Economy
Despite the common assertion that all math is inherently difficult, statistics is rooted in simple
mathematical concepts. Descriptive statistics, as depicted by author Charles Wheelan in Naked
Statistics: Stripping the Dread from the Data, is a way to summarize raw data in order to make
immense data sets more manageable and understandable (2013). As Wheelan points out, everything
from presidential elections to baseball games can be summarized using statistics (2013). One of the
most prevalent uses of statistical analysis is to summarize data in order to reflect the health of the
U.S. economy, specifically through gross domestic product (GDP). Wheelan touches on the subject
of how statistics can be used in conjunction with economics; however, there is much more he does
not mention. The health of the U.S. economy is imperative to every American. It dictates whether it
is a good time to splurge on a pricey vacation, invest in a new company, or save for the future. The
only way to truly understand the current status of the U.S. economy is by being able to interpret
statistical analyses accurately, which may be trickier than it appears. Just like any other topic, it
starts with the basics (mean, median, etc.), but Wheelan soon makes it apparent that things become a
bit more complicated when one looks past the fundamentals of statistics (2013). Interpreting
statistical analyses is more than just being able to read charts and graphs. Descriptive statistics is
rooted in simplicity;

The Impact of Outsourcing on the U.S. Economy Essay
It is difficult to determine whether offshore outsourcing has a positive or negative effect on the U.S.
economy. It may actually depend on which perspective you take on it. As stated by Hira and Hira
(2005), outsourcing in the services sector is a major shift in how the economy operates and will have
serious impacts, both positive and negative, on the trajectory of economic growth, distribution of
income and the workforce. However, there are many factors to take into account when considering
globalization. Companies must familiarize themselves with the various rules and regulations of
global business, tariffs, trade agreements and barriers, and decide how to go global; global
consistency or local adaptation. All of these issues affect ... Show more content on Helpwriting.net
...
Furthermore, the U.S. economy may also benefit if companies reinvest the extra profits gained from
outsourcing for expansion in the U.S. This creates more jobs at home, but again, this is a long term
effect of outsourcing and depends on how successful that business is overseas. Exporting presents
many advantages including reduced dependency on home market sales and greater control over
research, design and production decisions. Conversely, many exported goods are subject to tariff or
nontariff barriers and transportation costs that may substantially increase the final cost to consumers
(Williams, 2009.) Some companies stand to benefit from exporting. Large U.S. based organizations
are strongly in favor of their companies' free ability to export U.S. jobs and have no interest in
taking responsibility for the consequences to their employees. Basically, this means that the CEOs,
executives and shareholders support offshore outsourcing because they stand to gain from rising
profits and stock prices while employees here at home are losing their jobs to free trade and
offshoring. The U.S. is in a period of transition in which many companies have just discovered the
benefits of outsourcing, so they are anxiously scrambling to substitute cheaper foreign labor for
American labor. The direct transfer of work overseas is growing much faster than the

U.s. Economy : A Sinking Ship
The U.S. Economy – A Sinking Ship Real economic growth is defined as, "the rate at which a nation
's Gross Domestic product changes or grows from one year to another." ("Real Economic Growth
Rate"). In the U.S, GDP growth rate is currently 1.6%, compared to 1965, when it was 6.5%
(Amadeo). Total Factory Productivity, or development of business processes and technological
growth, is another measure of economic growth. The average TFP from 1891–1972 was 2.33, where
the average TFP today is 1.33 (Matthews). It is apparent that the U.S. economy is not growing the
way it once did. There are many reasons it is not doing well, and cannot grow how it used to. These
include decreased productivity in the workforce, no new technology, limits on ... Show more content
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This is negatively affecting workers and the economy. The money businesses are using to buy back
their own stock could be going toward purchasing new equipment and facilities or rewarding
employees through raises or increased benefits. Without increased wages, the standard of living
stagnates or even decreases. In the past, technological revelations would spur investments and
purchases of new technology within businesses, resulting in an increase in productivity. The last
technological development was in the 1990s, with the IT revolution. From 1996 to 2004, the average
Total Factory Productivity was 2.46, which is a record high. It was a large increase from 1972–1976,
when the average TFP was 1.33 (Matthews). Technology benefits the economy through direct job
creation, contribution to GDP growth, emergence of new industries, increase of efficiency in the
workforce, and ways for businesses to reach out to consumers (Kvochko). As seen, technological
revolutions encourage economic growth and productivity. In the past decade, no major advances in
technology have been made. New innovations, such as smartphone apps, may make everyday tasks
easier, but they certainly do not boost the economy. In some ways, they are a distraction to workers.
Social media, like Twitter or Facebook, interfere with the focus of workers and their efficiency in
completing tasks. Technology that is currently being developed, like

U.s. Economy 's Economic Analysis
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. Positive financial numbers just add to assumptions
about a potential loan fee climb by the Federal Reserve heading into 2016. The Fed has not raised
loan costs since before the Great Recession, and no one is sure how markets will respond when an
expansion at long last arrives. A groundbreaking 0.25 Fed stores rate climb is stand out test the U.S.
economy confronts as the new year approaches. Work constrain investment is still generally low.
Government officials keep on racking up gigantic shortages and back them with modest credit.
Furthermore, the whole worldwide money related framework is wavering since China 's economy at
last hindered following quite a while of insatiable development. The accompanying are three
difficulties that American organizations and policymakers will probably stand up to in the coming
year. The Fed 's Difficult Balancing Act The Federal Open Market Committee (FOMC) has
straightforwardly toyed with raising financing costs since at any rate Q4 2013, Why hasn 't it pulled
the trigger? It is likely in light of the fact

U.s. Economy 's Economy
1
U.S. ECONOMY
U.S. ECONOMY CRISIS
Sheryle Leonard
Colorado Christian University
2
U.S. ECONOMY
Abstract
The state of the U.S. economy has an impact on every American. There has been economic
depression in this country since the collapse of the housing market in 2007, that has seen widespread
unemployment and home foreclosure combined with conservative consumer spending. Research
conducted through financial new websites, government reports and survey provided information on
where the economy stands today as well as how Americans view the economy. The findings were
that there are signs of improvement within the economy, yet those polled indicate they feel there is
little change. Important steps have been made towards and economic recovery, ... Show more
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So, where does our economy stand now? Many Americans would like an answer to this question. In
order to find an answer, we must look at the factors that drive this economy. The U.S Economy
currently shows signs of improvement based on a declining unemployment rate increased consumer
spending and falling foreclosure rate in 2011.
The topic of unemployment is one that has affected Americans greatly during the recession. Millions
of people in the United States have found it very difficult gain employment.
Kirsten Wilson:
Kirsten Wilson:
Kirsten Wilson:
Kirsten Wilson:
3
U.S. ECONOMY
Many more find themselves underemployed or underpaid, or both. Job creation is a difficult task
that has been compounded by budget cuts that have eliminated government positions. Currently
there are approximately 13.1 million unemployed people in America according to the report by the
Bureau of Labor Statistics. This is equal to an unemployment rate of 8.5% ("Employment Situation
Summary", 2012 p.1). These numbers may sound high very high; however, they actually represent a

significant decline in unemployment as the rate has fallen 0.6% since August of 2011. The release
by BLS (Bureau of Labor Statistics) also shows that there was an increase of 212,000

U.S. Economy vs. South Korean Economy
Phase 1 Applied Managerial Economics
DB 2
Tony E. Madison
Colorado Technical University Online
ECON616–1304B–04
Nov. 24, 2013
Introduction the Problem
Lester Scholl, Chairman of the Board at AutoEdge, told me during my interview, the company has
been floundering since product quality issues caused millions of automobiles to be recalled. This
morning he explain what he wants me to focus on initially. The board is considering several
proposals in response to their situation, and they need me to create a list of the legal, cultural,
financial, and economic factors that AutoEdge needs to consider about the location of our
manufacturing operations. Most members of the board aren't familiar with this aspect of the
business, so they ... Show more content on Helpwriting.net ...
As well as the fact that their trade deficit is 4,899 USD millions, with a reasonable interest rate and
inflation of 1.8% economically they are doing quite well when being compared to the U.S. As a
matter of fact their inflation rate is not the same but with–in the same range for most years
throughout the last 10 years. (Trading Economics, South Korean Balance of Trade, n.d) (Aneki.com,
Ranking and Records, United States vs. Korea South) (Inflation.eu, Worldwide Inflation Data,
Inflation South Korea 2012, n.d) (Global Rates Com, Fed Federal Funds Rate, American Central
Bank's Interest rate, n.d) (UN Data. A World of Information, Per Capita GDP at Current Prices USD,
South Korea) (Index Mundi, Unemployment Rate South Korea, Historical Data Graphs per year)
(U.S. Inflation Calculator, Current U.S. Inflation Rate 2003–2013,) (Inflation.eu, World Wide
Inflation Data, Historical Inflation south Koreas – CPI Inflation)
Cultural
There are many cultural differences, however, in my opinion those that have the most importance
attached while doing business, are the way they determine authority, the fact that negotiations are
something they believe should be a hard fought battle, trust being something very important because
reputation sells your products not how good a product you produce, and personal relationships are of
major importance. When deciding who to put someone in charge you need to know

U.s. Economy Gains And Jobs
Article 6 – "U.S. Economy Gains 215,000 Jobs in March" The anecdotal explanation for the
American economy for years has been that the number of jobs have increased but wages have not
grown as rapidly. This held true again on Friday, April 1, 2016 as 215,000 jobs were added to the US
economy. Because this amount exceeded the predicted 199,000 jobs, this gain was considered a
healthy one. According to Jim O'Sullivan, chief U.S. economist at High Frequency Economics,
wages grew a minuscular 2.3% compared to last year's statistics. In the last two years, O'Sullivan
states that millions of jobs have been added to the economy but wages have not followed. Typically,
an increase in the number of jobs will result in an increase in wages. March's wage growth is
especially disappointing as wage growth had reached 2.6% last year, only to fall to 2.3% this year.
U.S. Deputy Secretary of Labor Chris Lu believes that "Wages are the unfinished business of the
recovery. Clearly we need to do more on that front." The unemployment rate rose from 4.9% to 5%.
This is usually indicative of the return of employees to the job market. This is a positive sign. In
part, the second–rate wage growth is due to the number of employees seeking full–time employment
but can only secure part–time employment. "Involuntary" part–timers increase slightly in March
from 6 million to 6.1 million. This explains the high underemployment. Underemployment is
derived by combining unemployment

Essay on The Effects of Immigration In The U.S. Economy
Introduction
Throughout history, countless millions of people left their native land and moved to a strange
country where no one knows what kind of faith lies ahead for them. The heaviest immigration
worldwide took place from the early 1800's to the Great Depression. Most of the immigrants came
from Europe and half of them immigrated to the United States. Whatever prompted the immigrants,
they were brave, bold, and courageous men and women. They left familiar communities for a new
land and a new people.
The Four Waves of Immigrants
The United States has always been a nation of immigrants. English, Dutch, and French men and
women settled it in its earliest days, the first decade of the seventeenth century. Groups from other ...
Some colonists came from Denmark, Finland, and what is now Ukraine. Some colonists sought
adventure in America. Others fled religious persecutions. Many are convicts transported from
English jails. But most immigrants by far hoped for economic opportunity. Many could not afford to
come to America and came as indentured servants. Such a servant signed a contract to work for a
master for four to seven years to repay the cost of the ticket. Blacks from West Africa came to the
colonies involuntarily. The first Africans were brought as indentured servants, but most blacks
arrived as slaves. West African blacks captured most of the slaves in wars and traded them for
European goods. Wars in Europe and America slowed immigration during the late 1700's and early
1800's. Newcomers included Irish fleeing English rule and French escaping revolution. Congress
made it illegal to bring in slaves as of 1808. From 1830 through 1874 several states passed their own
immigration laws, since the federal government did not regulate immigration in any way until
18754. During the early 1800's, New York City began to replace Philadelphia as the nation's chief
port of entry for immigrants. The country's first immigration station, Castle Garden, opened in New
York City in 1855. Ellis Island the world's most famous station, operated in New York Harbor from
1892 to 19543.
The second wave of immigrants arrived in 1820 to 1870, almost seven and a half new comers
entered the United

The Deregulation Of The U.s. Economy
In the 1920s, there was an increase in bank credit and loans. Confident in the potency of the U.S.
economy, the stock market became a one way bet. Many consumers borrowed money to buy shares.
Firms took out more loans for expansion. Because people took on so much debt, it meant they
became more vulnerable to a change in confidence. When that change came in the form of the 1929
crash, those who had borrowed money were left exposed. Moreover, rush to sell shares trying to
remedy their debts. Interconnected to buying shares on credit was the practice of buying shares on
the margin. To buy on the margin meant you paid between 10–20 percent of the value of the shares;
but it also meant you were financing 80–90 percent of the value of the shares. This allowed more
currency to be invested, which inflated the value of each share. Numerous investors made millions
buying on the margin, the so–called 'margin millionaire' investors made millions in profits buying
on the margin and observing the rising price of their share. However, it also left stockholders
vulnerable when prices fell. During the 1920s, the virtually endless increasing movement of the
markets seemed to make this practice practicable, Exacerbating this tendency was the fact that more
and more investors were getting bank advances in order to pay the preliminary marginal buy in,
Thusly resulting in there being very little tangible currency supporting these stocks' values. As
investors and brokers began to identify

India's Growing Economy And Its Effects On The U.s.
Cultivating India: India's Growing Economy and Its Effects on the U.S.
India represents a complex mix of exotic images and prosaic realities. Exotic images of India
encompass elephants and monkeys, curry and naan, bindis and Bollywood. The prosaic realities of
India focus on the third–world poverty, the prevalence of outsourcing, and its geo–political location
in Asia. However, India has cultivated a thriving, modern business presence, and it is poised to
become a global financial juggernaut in the next fifteen years. Over the last two decades, India has
experienced marked economic and industrial growth in its own country as well as the global
community. The rise of India will have a significant impact, not only on the U.S. economy, but ...
This is in sharp contrast to India's largest Asian competitor, China, whose youth workforce is
declining due to regulated birth rates and a spike in college enrollment. (See Figure 1.1) A larger
base of workers for input in emerging markets leads to greater outputs of production, which is
important for shifting the production possibility curve outward and building a strong national
economic base in order to compete globally. In 2005, 50 million Indians fell into the middle–class
income bracket with a purchasing parity power between $4,380 and $117,650 (US), but this was
only 5% of the population (Das, 2014, p.26). Current economic and population growth rates predict
that the middle class will swell to 583 million people or 41% of the population by 2025 (Das, 2014,
p.26). The growth of the middle class has precipitated an increase in disposable income and
therefore consumption. The rise in Indian consumption patterns are set to continue, and will likely
be directed into increased healthcare, education, private transportation, recreation, and
communication expenditures. While these categories account for 52% of the average spending for
middle class households, that spending average is projected to rise to 70% by 2025 (Das, 2014,
p.27). Political leadership changes and new government initiatives are changing business policies
for the better and encouraging foreign investment. Prime Minister Narendra Modi's

The Impact Of U.s. Economy On The Housing Crisis
In 2008, the National Bureau of Economic Research publicized that the U.S. Economy had entered
into a recession. The overall agreement of what was the primary cause of this recession was the
credit crisis from the bursting of the housing bubble. This lead the U.S. into the worst recession in
over sixty years (Holt).
The decade before the 2008 crisis, showed the development of a key factor that would later
contribute to the crisis. It was the dramatic increase in aggregate households' indebtedness that had
become so severe in the United States. This large growth in household indebtedness was a direct
result in large by the significant and sustained expansion in residential mortgage lending. With the
growth in the residential mortgage ... Show more content on Helpwriting.net ...
Another economist by the name of Thomas Sowell stressed that the government's role in creating
the housing bubble. With the housing markets that had the largest home price increases were often
markets that the local government had forced land use restrictions on the amount of land available
for housing. Having relaxed mortgage lending standards were mainly the result of being government
influenced (Russo). During the 2008 recession, the Federal Housing Administration increased its
insurance activity to keep money flowing into the market. Without this government agency's
backing, it would have been much more challenging for the middle class to get a home loan from
the start of the recession (Griffith). A few large financial firms experienced financial stress during
the 2008 Recession and in response, the Federal Reserve provided the liquidity and support through
a variety of programs motivated to help the functions of financial markets and institutions, and in
effect limit the damage done to the U.S. economy. The Federal Reserve had provided record
amounts of monetary accommodation in response to the severity of the reduction and the gradual
return of the ensuing recovery. Finally, the financial crisis caused major reforms in banking and
financial regulation, which included congressional legislation that significantly affected the Federal
Reserve. One example is the

Restoring The U.s. Economy Essay
Restoring the U.S. Economy
The United States of America has always been known as just that, which is united. However, lately
everyone (i.e.: news media,) has been referring to our country as just plain ol' America. Could it be
because they know information about the United States that most of its own citizens are unaware of?
The answer is yes because most Americans fail to realize that for years the United States of America
has turn out to be everything but united, and this has been a result due to its ever growing wealth
gap. However, in this current period of time, minorities have been the ones to predominantly endure
the vast amounts of injustices that the gap has bestowed upon the U.S., but the wealth gap will not
stay biased towards minorities any longer. In the article "Speaker Addresses Race–Wealth Gap"
author Larry Mitchell, quotes speaker Tim wise stating "We have inherited legacies of racial
injustice and inequality... It's not our fault, but it is our burden" (n. pg.) Although this problem might
not affect us directly; it does exist causing all sorts of destruction to our economy. The wealth gap is
an issue that has continuously remained a severe threat to the stability of U.S. economy.
Nonetheless, the wealth gap crisis can be reduced if not eliminated completely by the great efforts of
government enforced policies, financial resources, (funds) and job creation.
The roots of the wealth gap are ones that are deeply embedded into America's history affecting its
past,

Outsourcing American Jobs Hurt U.s. Economy Essay
Outsourcing American Jobs Hurt U.S. Economy The dawn of the outsourcing era. Many large U.S.
corporations cultivates outsourcing faster than we can imagine. The trend that began in the late 1970
and picked up speed in the 1900s with the opening trade with China, India, and Eastern Europe
("Outsourcing: What's the true Impact"). In its broadest sense, outsourcing is simply contracting out
functions that had been done in–house–a longtime U.S. practice ("Globalization: Threat or
Opportunity"). Subsequently, outsourcing is an essential part of globalization; and it is the
combination of markets through the cooperation of internalization, federal, and state governments
with corporate companies to produce products on a reduce production cost, and offer services on
lower labor cost. When a U.S. manufacture product, and buys material from an intermediate supplier
from out of the country rather than producing them in–house, that is what is called outsourcing.
Also, when U.S. corporation hires outside contractor out–of–the–country to do U.S. call center
services for less labor cost that is outsourcing. When a company deals out its operational task, such
as payroll, accounting, and software operations that is outsourcing. Obviously, all of these examples
seem to benefit and in favor of the corporations. To get the clear understanding of outsourcing for
major corporation perspective, I have interviewed IKEA's U.S. Deputy Retail Country Manager Rob
Olson about outsourcing–Swedish

The Future Of The U.s. Economy
The Future of the U.S. Economy
What lies ahead for the U.S. economy is uncertain and is leaving the minds of people in dismay as
to how will they survive in their near future. The U.S. has not had a positive balance of trade since
1976. That means since 1976 other countries have been exporting goods and services to us and we
have been exporting our currency to them in return. This trade–off has actually been mutually
beneficial (to an extent). The U.S. dollar has helped other countries stabilize their own monetary
regimes, and has given them a powerful medium of exchange. In the U.S. the currencies backed by
the dollar or triangulating trade through the dollar tend to require large dollar reserves, which
increases demand for our export. When a nation's debt exceeds its ability to repay even the interest,
it can be assumed that the currency will collapse. The greater the level of debt, the more dramatic
the inflation must be to counter it. The more dramatic the inflation, the greater the danger that
hyperinflation will take place. As the US dollar is a fiat currency and is on the ropes, the US will
experience a currency emergency at the street level that will be unprecedented. Your life savings
could be reduced to nothing almost overnight. Inflation is a fact of life. However, the thing
governments have traditionally done when they simply can't pay their debts is print more money.
The problem with this is the further you expand the money supply, the less the money you

Essay about U.S. Economy
The United States economy is currently not looking very good. Over the past couple of months the
economy has taken a turn for the worst and we could be headed into a recession in the coming
months or years. The biggest problems are in the real estate and mortgage markets. In 1999, housing
prices rose at huge rates and lenders began offering riskier mortgages, which caused homeowners to
keep piling up huge debts. People were taking out loans and balloon mortgage payments that they
really could not afford. The problem began in late 2007, when housing prices began to fall and the
system fell apart causing huge numbers of defaults on home loans and foreclosures. Currently, 5.6%
of mortgages are delinquent, the highest rate in 21 years, and ... Show more content on
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The housing crisis that I mentioned earlier and resulting backlash through the entire economy has
been building for awhile now but it has just came into the forefront in the past couple of weeks. We
really haven't faced a downturn like this since the Depression. Last Tuesday, January 22, the Dow
Jones industrial average fell almost 600 points and was already down 9% in 2008 (Gross 1).
Immediately the Federal Reserve took action and cut the interest rates three–quarters of a percentage
point, the biggest cut in 24 years. Today, not even a week later, the Fed again cut interest rates, this
time by a half–point (Aversa 1). This move is an effort to keep the economy out of a recession by
getting money back into the banks and encouraging them to keep lending credit to turn the economy
upward. Whether or not it will work remains to be seen in the coming months. The government also
announced another move to a couple weeks ago to help get the economy going again and avoid or
slow down a recession. President Bush and the House are currently developing a $145 billion
stimulus plan that would give tax relief to citizens by sending them individual checks for $300 and
up. The plan would put over $100 billion into the hands of consumers and the government hopes
that money would be spent and put back into the economy (Wolf 1). While all these things are good
news for the struggling economy, most economic experts believe that a recession of some kind may
be impossible to avoid

U.s. Economy 's Impact On The Economy
One argument that disagrees with the increase being an issue, States that the economy could benefit
from the tuition increase being put back into it. With this extra money the economy could start to
recover from the recession that designated start was December 2007 (R.F., 2015). While recovery is
very important for America, how can tuition increase help to rebuild a country that needs less people
in debt and more productive citizens producing rather than increasing debt due to rising cost? How
much will the government take from students to rebuild its economy? Depriving student of funds is
wrong and is not the best solution for our economy. There are more ethical and effective ways to
fight a recession that seems to already be recovering than to increase tuition for those that in the
future will be an important part in the increase of our nation's productivity. While conducting my
interview with my economics instructor he stated that college education has to be less costly and
lead to skills needed by employers. He also stated that sometimes prices defer from individual to
individual and to consider price discrimination (Curtis, 2015). Price discrimination is the legitimate
business practice of charging different prices for the same product or service to different customers
under different conditions (Croon, 2014). Public colleges and universities have been known to use
their financial aid rewards as a part of price discrimination. A company can discriminate price when

Tracking the U.S Economy
Tracking the U.S Economy In 2014
Emnet Idesta
Jacksonville University
Davis College of Business
ECON 201
Professor Pordeli
29 May 2014
Table Of Contents
Executive Summary...........................................................................................................3
Current State of the U.S. Economy A. Gross Domestic Product
(GDP)................................................................4
B. Foreign Trade (Exports & Imports)..........................................................6
C. Gross Private Domestic Investment..........................................................6
D. Consumer Spending ... Show more content on Helpwriting.net ...
Reduction in real exports (real imports, which are a subtracted in the GDP calculation declined as
well), accounted for a significant portion of the economic decline, followed by a decrease in
inventory investments, non residential fixed investments, residential investments and a cutback in
state and local government spending. The GDP 's only supporter so far this year came in the form of
increased real personal consumer expenditures, which grew from 2.1 percent from the previous
estimate of 2.0 percent, mainly reflecting sharp increases in services and slight increases in other
areas. The BEA states, "The downturn in the percent change in real GDP, primarily reflected a
downturn in exports, a larger decrease in private inventory investment, and downturns in
nonresidential fixed investment and in state and local government spending that were partly offset
by an upturn in federal government spending" (2014). The table below, prepared by the BEA, shows
precisely which components of GDP rose and tumbled in Q1 2014.
B. Foreign Trade (Exports & Imports) According to records maintained by the U.S Census Bureau
and the BEA, exports in April of $193.3 billion and imports of $240.6 billion resulted in a trade
deficit of $47.2 billion, up from $44.2 billion in March. The April exports were $0.3 billion less than
March exports of $193.7 billion, but

Illegal Immigration, the Drain on the U.S. Economy
Peter Fern
COM/150
02–12–2012
Shelli Meade
The amount of money that comes out of your pocket for schooling, incarceration, jobs lost, and
maintaining the medical system in the United States because of illegal immigrants may be more than
people know. During the past few decades, the influx of illegal immigrants has risen dramatically.
Illegal immigrants put a huge strain on our school systems, commit a disproportionate amount of
crimes in this country and have taken many jobs that American citizens unemployed could do. The
economic drain on the school systems is growing rapidly. ... Show more content on Helpwriting.net
...
It is stated by many politicians that the illegals only take the jobs that American citizens do not
want. With the guest worker program and the use of H–1B visas, businesses use these workers at a
significant lower rate of pay than they would have to pay a citizen. The number of H–1B visas
issued in 1992 was estimated at less than 100,000. By 2002 the number climbed to over 1 million
(Wagner, 2007). This abuse of the working visa is absolutely legal by any company looking for
workers that are not citizens. The big business corporations are not looking to change this law as
they would be out of pocket a great deal more money in wages. Every single person in the United
States will be touched by the effects of illegals in this country at some point in their life. It may
come in the form of a grocery bill, auto insurance, property taxes, driver's license fees, hospital rates
or many other areas. In the area of healthcare, the influx of illegals has proven to put a huge burden
in all areas of the system. In California over the last decade many hospitals and emergency rooms
have closed due to the illegals being treated there and not being able to pay the bills from the
hospital. Right now, California out of the 50 states is last in the number of emergency rooms per
million people (Jones, 2012, #6.). The insurance premiums for citizens keep increasing because
when the illegal's go to an emergency room

The Effects of War on the U.S. Economy
The Effect of War on the U.S. Economy
Over the past two centuries, America has seen her share of wars. Wars that have affected every
aspect of her citizens' lives, perhaps most profoundly of all have been the effects that our economy
encounters in times of turmoil. From employment to credit and financial markets to the price of
much needed commodities, no aspect of our economy can be said to remain unchanged during any
given conflict. With the war in the Middle East entering its seventh year and past debt from World
Wars I & II still remaining on the national deficits' books, what does this mean for our economy?
Economists have drawn different conclusions on topics such as:
1. The economic cost of War on the economy
2. The economic ... Show more content on Helpwriting.net ...
In a revealing article by George Perry (2001) the author discusses the economic impact that a
disruption in the oil supplies would have on world oil prices. He states "Currently 28 percent of the
world's crude oil comes from the Organization of Arab Petroleum Exporting Countries (OAPEC)
consisting of Arab Muslim nations, some of which are not part of the OPEC cartel. The governing
regimes in all these countries are at some risk [due to the war on terrorism]." He goes on to state that
in a worst case scenario the economic consequences of oil supply disruption would be "oil prices
rise to $161 per barrel driving gasoline price to $4.84 per gallon. The increase in the nation's bill for
products of crude oil rises by about 10 percent of GDP, which adds perhaps 15 percent to the
inflation rate in the first year. And the recession is the steepest and deepest of the postwar period,
with GDP declining nearly 5 percent the first year." The immediate economic impact of the Iraq war
has been to cause uncertainty in the direction that the U.S. economy will take. In a recent USA
Today article, Polya Lesova sites the record high cost of crude oil at $91.86 per barrel as a precursor
to an impending crisis. "An unexpected drop in U.S. stockpiles has added to ongoing concern that
supply from the Middle East may be disrupted." Economists such as Stiglitz believe that there are
two reasons the Iraq war has significantly impacted global oil prices; 1) it has added significantly to

U.s. Economy 's Economy
EXECUTIVE SUMMARY Macro Economy The U.S. economy was stagnant during the last decade
primarily due to the two recessions that occurred from March to November 2001 and from
December 2007 to June 2009. The two recessions resulted in weak GDP growth, zero net job growth
and a decrease in household wealth that eradicated any gains in household wealth accumulated
during expansionary periods. Over the next year the unemployment rate is expected to decline at a
slow pace keeping consumer confidence low. In the short run, it is not likely that household
spending will increase significantly. Industry Analysis The last several years were also tumultuous
for the U.S. auto industry. After dominating the market for decades, American automakers had
grown complacent about product development. At the same time, rising gas prices and uncertainty
about the economy caused consumer preferences to shift from SUVs to more fuel efficient vehicles.
Foreign competitors entered the U.S. market offering more reliable, higher quality and more fuel
efficient vehicles at a lower price and began to steal market share away from American automakers.
In order to remain competitive, U.S. automakers need to focus on increasing production efficiencies
and developing innovative product offerings. Firm Analysis Ford started the decade lagging behind
foreign competitors in production efficiency and technological advances in new product
development. However, by the end of the decade Ford was the industry leader

Outsourcing American Jobs Hurt U.s. Economy
Outsourcing American Jobs Hurt U.S. Economy Globalization is the integration of markets through
the cooperation of internalization, federal, and state governments with corporate companies to
provide low–cost products. Subsequently, outsourcing is an essential part of this globalization.
However, what exactly is outsourcing? In its broadest sense, outsourcing is simply contracting out
functions that had been done in–house–a longtime U.S. practice ("Globalization: Threat or
Opportunity"). When a U.S. manufacture product, and buys material from an intermediate supplier
from out of the country rather than producing them in–house, that is what is called outsourcing.
Also, when U.S. corporation hires outside contractor out–of–the–country to do U.S. call center
services for less labor cost that is outsourcing. When a company deals out its operational task, such
as payroll, accounting, and software operations that is outsourcing. To get the clear understanding of
outsourcing, I have interviewed IKEA's U.S. Deputy Retail Country Manager Rob Olson about
outsourcing–Swedish goods. Olson stated that IKEA's outsourcing utilizes the unique talents of
different countries and their labor markets to increase trade, which helps better allocate resources in
their own countries while getting goods cheaper from others. Today, there are massive numbers of
people who think what started as a globalized extension by sending some work outside, in fact, is
creating uncertainties on structural

The Impact of Offshoring on the U.S. Economy
Off–shoring is the establishment of business operations outside national boundaries. The process of
moving business outside these boundaries is to garner an advantage either through tax breaks, lower
wages, lower transportation cost and/or relaxed regulations ("Offshore definition," 2014). Many
firms either branch out as a horizontal multinational or vertical multinational. Horizontal
multinational's produce the same good or services as abroad. This foreign direct investment (FDI) is
done to strategically place production closer to the target market. Doing this provides advantages
surrounding transportation cost while enhancing learning associated with local needs. A vertical
multinational is one that fragments a portion of its ... Show more content on Helpwriting.net ...
Multinational Corporations". The analysis will evaluate factors motivating firms to move off–shore
and the associated impact on the U.S. work force. The three measures that will be discussed are 1)
value added (i.e. the measure of capital and labor gain at a given production stage), 2) capital
expenditures (i.e. land, buildings and equipment), and 3) employment (i.e. number of jobs
lost/created). The paper will conclude with a discussion of outcomes between 1977 – 2003 using
data supplied by the Bureau of Economic Analysis.
Assessment
Economic integration aims to reduce cost and increase value for both producers and consumers. This
is accomplished by increased international trade for goods and services. Economic integration has
expanded markets by which firms can "play". Firms are more self–serving, their motive is to reduce
cost and increase profits. To do this firms have begun to off–shore their operations. Off–shoring
allows a firm to lower cost and establish a presence closer to target markets. This process has
become easier with technology advances. For example, information can be shared and transactions
made with the click of a button. International borders are easy transcended with expansive
transportation networks. This facilitates product movement and placement of resources, supporting
just in time (JIT) manufacturing. Critics of this believe overall economic well–being is affected
when companies off–shore, since jobs and

Positive and Negative Impacts of the U.S. Economy on the...
What are the positive and negative impacts of the U.S. economy on the world?
Introduction:
The USA is the leader of the earthly concern economy. It has the largest and strongest economy in
the world, because United States has GDP per capita $49,800 (The World Factbook). The USA is an
engine of world economy, the reason of changing and permutation of economic situation. The
United States of America very strongly influences world economy. Many international and world
transactions pass in US dollar. The increase and fall of dollar changes all world economy. All
technologies and the newest technicians become and checked in America. Because of this essay will
learn about the influence of the USA economy on the world economy. This essay seeks ... Show
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And the USA is a most large exporter of agricultural products. The America has 35% of world
export of wheat, 69% of corn, soybeans, 25% of cotton, 18% of rice, 12% of tobacco (National
Agricultural Statistics Services). If it does not help or not give the chance to them to pass the USA in
the international transactions they can lose competitiveness and remain in the same level. The
network of the international production created by means of direct foreign investments, in economic
literature it is accepted to call the second economy. Development of economy of the majority of the
countries is based on achievements of scientific and technical progress, use of scientific data. 70%
of scientific information contain in the American databanks (About the USA). As even in Europe
and Japan there are no equivalent databanks, still a long time their scientists, engineers and
businessmen will continue to get knowledge generally from the American sources. The US dollar is
used in the majority of the international transactions and therefore that happens to the American
economy, will influence the international financial resources. Dollars bring big consequences both
for the USA and for other countries. The economy of many countries depends on currency dollar.
The increase in its course reduces the volume of the income in dollars for the country. And change
of US dollar more considerably, than change of an exchange rate of the country. On the

The Current State of the U.S. Economy Essay
The Current State of the U.S. Economy
The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent
the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a
steady manageable rate. Mae West once stated "Too much of a good thing can be wonderful" and it
seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing
surplus and booming economy, instead of having an outsized tax cut, we should use the surplus to
further pay down the national debt. A tax cut, though most Americans would favor it initially, would
prove counter productive. Cutting taxes would over stimulate an already raging economy, and
enhance the possibilities of an ... Show more content on Helpwriting.net ...
The federal reserve has raised interest rates five times in less then twelve months, and the pervious
raises are just barely beginning to take effect. The previous raises averaged around a quarter
percentage point, and since these raises failed to slow the economy, Greenspan, unable to take
anymore chances doubled the previous with a promise of more to come. The interest rates are
expected to reach 7.0% by June, the most severally effected by these constant raises are
shareholders. Because of these immediate effects market economists are largely against the interest
rate hikes. Their position is that the average inflation rate over the past three years has been at
around 2% close to the markets expected inflation rate of 1.9%. The economy is on a sixteen year
run, continually moving forward. The historical data is there however; the consumer price index was
at 1.6% over the past twelve months and the March year over year rate was at 3.7% The market
economists do not stop there due to the vast improvements in productivity, largely due to increased
technology and the internet, some market economists argue that Greenspan should leave the
economy as is. Ideally the growth rate of the economy should be set by the growth rate of the labor
force and productivity, and if the two were similar, inflation would not be a factor. The economy

The Health Of The Current U.s. Economy
Situation:
The health of the current U.S. economy appears to be growing gradually. The second quarter real
GDP growth was 3.7% and the unemployment rate declined to 5.3%. The U.S Federal Reserve (Fed)
is expected to raise interest rates in the near future when it sees clear signs of strong economic
growth and improvements in the job market.
The last time the Fed raised interest rates (to 5.25%) was in 2006. This move was soon reversed as
the 8 trillion dollar housing market bust sparked the global financial crises. About 8.7 million jobs
(about 6%) were lost, unemployment rose to about 10% nationally leaving many households with
less to spend and higher debt.
Given its mandate to maximize employment and maintain price stability, the Fed took monetary
policy actions in December 2008 to keep long–term interest rates at near zero (between 0.0% and
0.25%) to help stabilize and revive the U.S economy –– leaving no option for further interest rate
reduction.
The U.S has a hybrid economy and is considered a large market economy, where there is no central
authority directing people what to produce or where to ship it. So, what are the implications and
likely economic consequences of an interest rate hike using the IS–LM model in a closed economy
and a basic market for loanable funds?
Closed economy IS–LM analysis: The IS–LM model focuses on the equilibrium of the goods
market and the money market. In other words, it shows the relationship between real output and
interest rates.

The Euro And Its Impact On The U.S. Economy
The Euro and its Impact on the U.S. Economy The euro is the official currency of the following 12
European nations: Belgium, Germany, Greece, Spain, France, Luxembourg, Ireland, Italy, The
Netherlands, Austria, Portugal, and Finland. Although it has been the official currency since January
1,1999 it became physical tender which can be used by all participating countries on January
1,2002. The introduction of the euro into the world was truly a historic event; it represented a unity
never before seen in the history of Europe, a common currency. After years of negotiations and
much skepticism from around the globe, the implementation of the euro is no longer an abstract
ideal, but a change that nations, corporations, and investors must ... Show more content on
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These changes will in turn make companies more competitive, expand markets for businesses, as
well as increase trade across borders. However, most importantly the euro is intended to create
financial market stability within the participating countries. By eliminating the movements of
exchange rate and all reference to them, the European Central Bank will control interest rates and
inflation. This will lead to less uncertainty and create new opportunities for success.
Global American businesses are also more likely to be successful because of the American concept
of investing in Europe. Many companies compare the economic impacts of Europe as a whole
instead of as single countries. "There is a very real possibility that US corporations, given their
lower cost base and the tendency they have already shown to view Europe as a single market, will
be the real winners from monetary union," according to a report by Price Waterhouse, the
international consultancy.
Another impact the euro could have on the American economy is by effecting the exchange rate of
the dollar. Although there is great potential for the euro to have a positive impact on American
business, there still is much uncertainty regarding the long–term effect it will have on the dollar's
role as the world's dominant currency. Federal Reserve chairman Alan Greenspan in his remarks on
the euro on November 30, 2001 states that, "clearly the

Not Just A Game : The Impact Of Sports On U.s. Economy
It is undeniable that in today 's society, the sports industry is booming and has become more and
more successful within the past sixty years. With the average professional athletes ' income soaring
to higher levels, most visibly in sports such as football, basketball, and baseball, it is easy to see that
American citizens are more than obsessed with sports. Basis for this paper is based off of one
particular online article titled, "Not Just a Game: The Impact of Sports on U.S. Economy". A brief
summary of this particular article will follow this introduction. Although I do agree with the main
premiss of this article, there are a few points which do need to be questioned. With this continuously
growing obsession of the sports ... Show more content on Helpwriting.net ...
This article starts out by stating that the sports industry generates roughly $14.3 billion in earnings a
year EXCLUDING the huge amount of indirect earning accumulated on Super Bowl Sunday which
has the second most amount of food consumed in one day (behind Thanksgiving) and provides
456,000 jobs with the average salary being $39,000. Next, it is examined how the sports industry
has so much power in the United State 's economy today. Fifteen industries with at least 10,000 jobs
were analyzed since there is not a designated sports sector, and six main sports jobs (only spectator
sports not hunting, fishing etc.). A table is then presented showing how many people are employed
in each of the 15 industries, the percent of occupation in each job group, and the percentage of total
jobs in each. Effect on earnings is then briefly discussed and shown on a pie chart showing that
initial, or the sports workers ' salaries accounts for $10.3 billion, direct which is the purchase of
supplies needed such as uniforms and shoes and accounts for $2.6 billion, then indirect which
supplies the direct supply chain which accounts for $1.4 billion. Last, occupation growth and
Industry patters are talked about using nearly nothing but different graphs and charts. It is also stated
that

Macroeconomic Outlook of U.S. Economy Essay
Investment Analysis Macroeconomic outlook of U.S. economy For every four to six years U.S
economy faces an economic slowdown. Thus the current market is now in forth year. The root of
U.S. crisis and its economy can be traced backed to 2007, when U.S housing bubble burst which
yields a financial meltdown in 2008. In average, the American trying to make ends meet in 2014, a
market and a recession will probably look and feel the same. In early 2008, when the financial crisis
began, then the U.S. national debt stood at $9.2 trillion. Figures figure out by the White House, the
national debt will reach $20.0 trillion by the end of decade about 140% of our current GDP.
Successful debt reduction requires fiscal constraint and policies that ... Show more content on
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The positive gains will come strongly as business and customer's confidence reinforce, when the
overseas sales increases and the Europe begins to emerge from the prolong snooze. And the
manufacturing purchasing index activity reports will show the strong expanding output.
Furthermore, there is a decent chance of an upside surprise to 2014 growth. Rational investor's
investments, spending and confidence are still below than the expected level what would be
considered normal levels by the standards of past economic expansions. As the job growth becomes
strong and consumers feel more protected then a righteous way of spending is getting better, more
consumer income begetting more spending could be initiated. If this occurs rapidly then the
quarterly growth is likely to exceed an annually at the rate of 3%. But if this does not happens in
2014 than it is nevertheless very likely to happen before the end of 2015. (Payne, 2014)
Unemployment In March 2014, the encouraging thing was that the unemployment rate held at 6.7%.
Even though a lot of individuals entered the labor force who power up the participation rate to
63.2% which explicitly means that the number of unemployed people did not raise so much. But the
rate is expected to gradually drop to 6.3% by the end of the year. In March, although the initial
reports on weather effects in January and February nevertheless played a role in dampening job
growth in those

The Financial Collapse Of The U.s. Economy
The financial collapse of the U.S. economy that occurred in 2008 created a foreclosure crisis that
resulted in thousands of homeowners losing their properties nationwide. This great recession caused
many homeowners to even lose their jobs, savings, and credit worthiness. Predatory lending was a
major contributing factor in these foreclosures.
Predatory loans are also known as sub–prime loans. These products were created for "savvy" buyers
who could not qualify for traditional loans. Stated income loans were very popular with self–
employed buyers. Another popular loan was the no–income/no–asset loan where the buyer qualified
primarily based on his/ her work history and credit. These loans were often called "liar loans".
Eventually, ... Show more content on Helpwriting.net ...
Some lenders would waive the pre–payment penalty only if they were the original lender and the
borrower(s) refinanced the loan with them. Due to changes in mortgage guidelines and regulations,
pre–payment penalties are no longer allowed with conforming and government loans.
Presently, there are a few options that are available to "foreclosure victims" in order for these
"victims" to become potential "boomerang buyers". The first option a buyer has is the "Cash
Option". Those who have it only need to find a property they can afford. The "rent–to–own" option
can be a viable option for buyers if they can find a property with reasonable terms and conditions. In
today's market, there are not many rent–to–own listings available in the Washington, D.C.,
Maryland, and Virginia area. Most sellers would prefer to sell their property quickly unless they are
an investor who is looking for rental income. This, however, may not be the case across the nation.
A buyer needs to be credit worthy to qualify for a property using the "rent–to–own" option.
If the buyer's offer is accepted, there is a lease agreement for one year or more, with the purchase
option at the end of the lease term. A sales price may be decided upon at the beginning of the
agreement or at the end of the lease. "Seller financing" is another optional choice for the buyer.
Seller financing consists of the seller agreeing to a short–term loan that "balloons" at the specified
term of which

The U.S. Free-Enterprise Economy Essay

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