It is very difficult to predict what American economy will be even in the nearest future. Almost no one is certain about future state of U.S. economy now. U.S. investors are worried about everything from possible war with Iraq to global growth prospective. Many economists are concerned that a war in the Middle East would severely disrupt America’s economy. This is because America’s modest and uneven growth leaves the economy vulnerable to shock.
America is in stage of recovery now. This recovery isn’t as strong as many executives, job seekers, and investors have hoped for. The recovery is not rapid mainly because the mini-recession last year was the mildest in nearly 60 years. America is not at its best economic state currently. Four years of enormous budget surpluses totaling more than $550 billion are giving now way to annual deficit over the next few years. A sharp increase in government spending tied to defense and homeland security issues, combined with lower tax revenues will lead to red ink over perhaps te next few years.
The nation’s unemploymant rate is growing. And it is expected to grow even more in coming months. But it is still the lowest compared to previous recessions. Unemployment rate is becoming more influenced by oversees competition. Consumers are still spending, but not as much as in privious years. Capital spending remains weak.
The Essay on Americas Economy Today Money Index Stock
America's Economy Today With all the bad publicity about the economy nowadays anyone with access to a TV, magazine, or newspaper should be somewhat familiar with the current economic crisis here in America. It seems like the Dow Jones Industrial Index and the S&P 500 Index are dropping lower every day, not to mention the poor condition of tech stocks listed in Nasdaq. Here's some current stock ...
Tourism and air transportation industries are declining. Market for residual energy services is likely to grow dramatically over the next few years. Construction industry will remain one of the strongest. There are no real worries about inflation. Intense global competition, price-sensitive consumers, and more effective use of technology will help keep inflation pressures in check. In 2002 the State Governments faced a combined budget gap of more than $40 billion, as a result of an overspending budget in the 1990s. More tough choices for the governors are expected to arise in 2003. Its important that governors do not make mistake of raising taxes in order to balance budgets, as many of them did in the economic slowdown of the early 1990s. American economy is still growing, but the rates of its growth have slowed down.
The economy is improving, but it is still very fragile and will response to any politican changes. There are reasons to still be very optimistic about future of U.S. Economy. The surge inproductivity has been one hallmark of this recovery. According to the Labor Department’s latest data, output per hour worked at nonfarm business grew at annual rate of 4% in the third quarter. For the past year, productivity rose a remarkable 5.3%, which is the highest rate since 1971. Strong productivity gains create a positive fundamental for any economy.
Higher efficiency can feet both profits an workers’ income, and it keps inflation low and borrowing costs affordable. In the short run, productivity gains will boost the economic sector that needs it most: Corporate America. Greater efficiency will enable companies to make more money. Additional cash will give businesses opportunity to start investing in new equipment again. And a better profits outlook will also sustain the stock market rally. In congressional testimony on November 13, Fed Chairman Alan Greenspan noted that in the current business climate, lower costs are generally associated with increased output per hour.
That will position companies to take full advantage of their more efficient operating leverage when demand growth turns around in 2003. As Greenspan has pointed out, over time, workers become more proficient with existing equipment and work processes, so productivity can continue to grow even if companies do not buy any new equipment. Even though Mideast war carries many risks for the economy, there is a good reason to believe that it will not be as devastating as it was a dozen years ago during Desert Storm. In 1990, the sudden Iraqi annexation of Kuwait spooked consumers into curbing spending and drove the economy into recession. This time, a U.S. assault on Iraq has been so well-announced that it should not be a shock to anyoneconsumers, companies, or investorsif and when it occurs. U.S.
The Term Paper on Argentina’s Economy after World War II
... for products urgently needed during the war years in the largest quantity possible..." ... quantitative analysis of a national economy, and comparative cross-sectional studies ... industry and infrastructure as primary reasons for this occurrence (Lewis, 272). ... in industry. However, since wartime prices made heavy industrialization very cost ... iron and steel, coal, fuel, oil, caustic soda and ash, tinplate, ...
will still have to pay the price of the war. But it might be not as much as it is feared. There are worries that the war will cause oil prices to increase and create shortage of oil. But this concern overstates the importance of Middle East producers to the world’s economy, and it is mistaken about the effects of a war on oil prices. In fact, with a quick and decisive defeat of Saddam, the price of crude oil is likely to fall sharply. One reason for this relatively sanguin outlook is the reduced importance of oil to the U.S.
Economy, compared with 25 years ago. Today, oil accounts for only 3 1/2% of GDP thanks to more efficient cars, houses, and equipment, and a shift of production in the American economy toward less energy-intensive methods. After an initial jump, prices on oil will fall sharply, assuming the Iraqi dictator is dispatched fast, as is likely. Predicting what would happen to oil prices should the U.S. and its allies attack Iraq is not an exact science, but the Percian Gulf War provides valuable evidence. Prices more than doubled after Iraq invaded Kuwait in August, 1990. Then they fell sharply from more than 430 a barrel to about $20 shortly after Desert Storm began in January,1991, when it became clear that America would quickly defeat Iraq.
It is very difficult to predict the future of the U.S. economy. Until the war starts, the uncertainty and anxiety will dampen the markets and the economy, says Thomas D. Gallagher, a political economist at ISI Group. This stage of unceratainty is the worst for the economy. Hopefully, soon it will be overcome. There are reasons to be optimistic about the short run of the economy.
Stronger growth is expected in next years. Economic performance over the balance of next year should be solid, if not spectacular. That is of course in case of good outcome of the war and assuming that there will be no more terrorist acts on the U.S. soil. In any case, U.S. Economy will remain one of the strongest in the world..
The Essay on Why Oil Prices Keep Falling
Base on the world economic review and studies shows that there are basic reasons why oil prices in global aspect keep on falling. Less Demand, More Oil. The oil price is partly determined by actual supply and demand, and partly by expectation. Demand for energy is closely related to economic activity. Then, over the last year, demand for oil in places like Europe and Asia, suddenly began weakening ...
