Usa Economic Critique

Economic Critique

The United States economy has gone up, down and through many twists and turns, much like ones favorite wild ride at the nearby amusement park. The United States economy is facing unstable times, and understanding the shifts and turns in economy, we have discovered some factors, which the nation has seen throughout the year. As a group of reporters, we researched the many key economic factors and identified the United States economy in unemployment, expectations, consumer income, and interest rates. We shall share some of the U.S. governments, current state of aggregate supply and demand. How it has experienced many changes over the years, and we will share within each report, as we looked at the perspectives of Keynesian, and Classical models and how they influenced citizens and government.

Unemployment

At some point during the course of the last few years, Americans have been unemployed. The President Barack Obamas Recovery Act funding is being released to help stimulate the economy. The politics circuits have reported that in addition to money being distributed in order to create jobs, money can also serve for the purpose of improving the quality of life. The state’s nation’s advances have caused the decline of employment to fall. There is great data in the polls that express that there will be a positive jump in the nation’s state of employment. There is evidence that shows the upward growth of the nation’s employment. Even through the improvements are not enough to rapidly change the overall state of the nation’s economy, many people are going to reap the benefits of the growth pattern ("The Current State of Unemployment In The United States", 2010).

Unemployment could reduce the supply of labor in the economy. This would shift the aggregate supply curve to the left. When people are on unemployment it means that they have less money which in returns means that there is a less of a demand in the economy. Because of this, the aggregate demand curve shifts to the left.

Expectations

The expectations for the US economy have many variables. There are questions about raising taxes, lowering taxes, the cutting or keeping the tax breaks. The Vanguard report offers an overview of the future economics state. The report state the federal funds rates will likely remain around 0% until mid-2013 (Vanguard’s economic and investment outlook, 2012). The return on cash will average less than 2% over the next ten years (Vanguard’s economic and investment outlook, 2012). The report also states the economy will rebound after short bouts of up and down movements. The next report by Vanguard could have dramatic changes based on the changes of President Obama’s tax reforms. This reform will have a great effect on the future economy.

The US has had a concern over the “fiscal