Current Macroeconomic situation in the U.S - Essay Example

Current Situation in USA Economy Current Situation in USA Economy The United s of America is currently facing financial crisis, a situation that is drawing everybody’s concern. The economic situation has recognition as the most serious since the global depression of the late 1920s (Orlov, 2011). The US government has not taken any viable action and do not address the basic causes of the nose diving economy. The sole cause of this entire dilemma is the mortgage market but it has spread causing a rise in unemployment levels, and a fall in investment level.

The problem worsens day by day causing a new problem every dawn. America is losing more money on daily basis and some got from the taxpayer’s money to fund the growing warfare state of the country. For instance, America currently has a debt of more than thirteen trillion US dollars. This debt is a burden to every breathing idiot of the United States. The daily accumulating debt will expose the future generation to a debt of trillions of dollars. Investors in the American economy are becoming less and there is thus a decrease in total savings of the country.

Economist predicts that the prevailing inflations will come to extreme levels in the near future (Freedman, 2010). America has witnessed a sharp drop in the local total output since two thousand and eight up-to-date. The ultimate cause of the drop is the government because it did not employ stimulus that catalyses economic activity across the country. For sure America has much of turned from being a producing to a consumer country thus it has to import more goods from other countries to meet the demand of the increasing population.

Housing in America continues to become a problem in the United States. This comes about due to the depreciating economy, high mortgage rates a high priced housing system. Employment has continued to decline further for a long time for both the permanently employed and the part time employed persons. The real expenditure for businesses has decreased and the expectations are that it will remain downbeat for good part of the near future. Generally, the prevailing situation is not embraced by most of the states citizens, the unavailability of good health and the dropping economy is not friendly to many (Freedman, 2010).

The challenge moreover goes to the citizens of America, will they actually resent going for the best leader who will bring all the positive changes expected to rectify the present condition of their country. The government of USA, which is composed of the policy makers, should adopt policies that will see the country revive its dying economy. The government should set labor-intensive projects that will absorb as many people into jobs as possible. This will improve their living standards hence the economy of the country.

It should set policies that safeguard the employees and give them good working conditions. The government should look for experts who will trim the economy and advise the government accordingly. The same experts if assigned should predict the future possible economic situation and draw relevant measures to handle the economic situation (Orlov, 2011). In conclusion, the government should extend tax-free holidays for the low-income earners and the middle class earners. The government should lower the interest rates on loans and mortgages.

The government should buy securities from companies, major banks, and bond dealers to boost them financially. The government should assume stagflation method to revive the value of a dollar. References Freedman, J. (2010). The U.S. Economic Crisis. New York. The Rosen Publishing Group. Orlov, D. (2011). Reinventing Collapse: The Soviet Experience and American Prospects. Washington: New Society Publishers.