Translate

Economic Problems of the United States

Economic Problems of the United States

By Dr. Lalit Kumar Setia |  @drlalitsetia  |  drlalitsetia@gmail.com  |  Created October 03, 2018 
Updated Sept 14, 2019

Around the world, countries are facing new economic problems. The China is lack of children due to its earlier decision of family planning. Now it is looking for the solutions to keep the economy growing without affecting the economic growth rate. The Singapore is also facing problem of 'getting labour forces older' and productivity is started to fall and it decided to foster technical skills training for older workers to boost the city's productivity. The economies of whole world, are becoming worried due to less rate of economic growth.

The Context of Debt-trap:

The economy of Unites States is one of the largest economy of the world. In terms of per capita GDP (PPP), it is sixth highest economy of the world. It has highly developed and technologically sound sector of services holding 80% share of its output, which made it so strong in the world. Apart from services sector, it has 15% manufacturing sector. The biggest advantage to the economy of United States is its citizens, who are well-educated and productive in terms of businesses. The politically stable government along with strong legal system provides stable business environment for the entrepreneurship, innovation, research and development. In 2008, the economy faced a major recession and till date it is not recovered completely from the economic recession. The economy is suffering from various factors like high consumer indebtness, low interest rates, and widespread mortgage lending which led to collapse of the housing sector in United States and collapse of various banks. In order to recover, the government intervened and purchased the mortgage-related assets. The growth of economy is still low and there is widespread unemployment.

The Current Account Deficit of United States:

The current account deficit (CAD) is also a great concern for the United States economy. The United States' President Donald Trump is taking initiatives for reducing the CAD. The CAD means the goods and services are being purchased more from the abroad than the value of goods and services being sold to the abroad countries. The imposition of import duties on the goods being imported from China, is an initiative to discourage the imports so that the goods and services which are made in USA can be safeguarded from the competition of China products.

Dependence over imported Oil:

The United States produces the oil but due to higher energy needs, it depends upon the imported oil. However, the economy increased the oil production to a great extent and now reduced its dependence on imported oil to a great extent. Due to increasing debt of United States which became $21 trillion on 31st March, 2018, the country is facing problems and being seen as unable to meet its debt obligations in near future. In case, the further crisis came in the economy, the economy can become bankrupt as Iceland.

Problem of maintaining liquidity:

Due to developed nation, the economy requires to make efforts to keep the liquidity in the economy so that the recession may be avoided to make a suffering again. Government finds out the areas to spend more particularly in the areas of social security and medical services to the citizens. The economy is surviving due to raising funds from issuing United States debt at higher rate of interest. The investors purchased the United States bonds at higher rate of interest and it also increases the liquidity in the economy. The issue of United States bonds also increases the demand of Dollar, and the value of Dollar is going up now-a-days in terms of other currencies. But issue of United States bonds is not a permanent solution to the economic situation of United States.

What can be done to make a permanent recovery?

The permanent solution can be to increase the exports and decrease the imports which is possible only after cutting the spending of American citizens. It is very difficult to control the expenditures which are being spent by the citizens. Further, the generation of jobs for the Americans can also boost their earning capacities and increase in the tax collections. Thirdly, it is required to improve the entrepreneurship skills by cutting costs and enhance the profits of the enterprises settled in United States.
Do you think something more the United States can do? Please tell your views?
*Copyright © 2018 Dr. Lalit Kumar. All rights reserved. 

No comments:

Post a Comment

I will be happy to hear from you. Please give your comments...

Auto_1

Horizontal Responsive1

Popular Posts

LoP1

Special Offer!

Funny Baba

Free Seminars

Featured post

Grow with a New Mindset and EQ

Grow With a New Mindset and EQ Everyone in this world is unique in most aspects and behaves differently because everyone has their own set o...

Free Notes

Tips to Grow

Earn Money

Popular Posts

Free Download

Tax Saving

Fun in Life

Labels

Progress Leaves Important Questions India Economic Growth Energy Governance Government Business Commerce Current Affairs Demand Economic GST General Knowledge Indian Youth Information Technology Parents Procedure Solutions Advance Tax Adverse impact of Social Media Agriculture Banking Change Children Clerk Common Man Corruption Currencies Decision Development Employees Financial Management Free Trade Agreements Growth Indian Culture Indian Economy Indian Rupee Interest on Advance Tax Liberalization Liquidity Management Money Notes Opportunity PPPs Personality Pollution Reforms Safety Supreme Court Technology United States 80C 80EE Accounts Act Action Advantages Air Quality Index Anti-virus Anti-virus Protection Appreciate Appreciation Assets and Liabilities Astrology Author Autocratic Automation BIFR Basic Exemption Limit Behavioural Benefits Best Resort Bitcoins Budget Business Environment CAD CBI Court CHSL Capacity Capital Capital Expenditure Capital Gain Capital Market Capital Stru Capitalism Care Taker Cash Cash Flow Cashier Challenge Change Management China Chit Fund Clean Clearing House Commission Competitive Examination Compliments Computer Computer Virus Consolidated Statements Consumers Contractual Control Covid-19 Pandemic Credit Criminal Law Act Crisis Crops Crypto-currencies Current Account Deficit Current Events Custody Cutomers Cyber Crimes DBT Dairy Register Dairy Writing Data Theft Debit and Credit Debt-trap Deficit Delhi Demonitization Dera Sacha Sauda Detecting virus Dictatorship Diet Difficult Situations Digital Disadvantages Dollar Donald Trump Download and Install Dr. MSG Drawing and Disbursing Officer Duties of Diarist EQ Earning Money Easy Electricity Emotions Employment Empowerment Environment Environmental Crisis Equity Ethical Values Evaluation Event Examination Expense Accounts Exposure Farmers Faster Finance Financial Administration Financial Control Fiscal Deficit Fixing Responsibility Food Grains For example Foreign Institutional Investors Free Fuel Prices Further Scope Geography Getting rid of Corruption Global Market Globalization God Good and Simple Tax Goods and Services Tax Google Adsense Google Desktop Government Departments Gurmeet Ram Rahim Singh Hacking Harmony Health Problems High Cour Honesty How Google Adsense Works Humanity IL&FS Identification of Assets and Liabilities Immunity Imports and Exports Imprisonment Income Income Accounts Income and Expenditures Indian Institute of Management Indian Jal Shakti Indoor Plants Industrialization Inflation Internet Inventions Investments Irregularities Jobs Journal Judgement Labour Language Law Leadership Learning Life Life Style Linking Aadhaar Loans Loss to Government MBA Mahatma Gandhi Management Development Programmes Managerial Success Managing the work performance Marketing MeToo Mind Mindset MoU Mobile Governance Moral Morality Motivation NITI Ayog NPAs NPS NRF Narendra Modi National Pension System Net Assets Value New Industrial Policy Niti-Aayog Non Performing Assets Outsourcing PSUs Palmistry Paper Parking of Funds Penalties People Personal Ledger Account Petroleum Picasso Police Commissioners Political influence Practical Problems Precautions Prime Minister Prime Minister Narendra Modi Principles of Management Probing Problem Problems Procurement Products Protection Public Public Sector Entities Publication Quality education RTI Activists Rafale Reaction Rebuilding organizations Record Keeper Recovering from Sickness Recovery Religious Research Paper Retrieval Revival Rulers' actions SIPs SSC Search Engine Section 234 (B) Seeking Information Self-education Services Sexual Harassment Sim Card Simple Sirsa Smog Social Media Social Responsibilities Society Solar Solved Speed Up Spiritual Saints Spyware Stability Staying Calm Storage Store Keeper Struggle Success Suggestions Surplus Sushant Rajput TDS Take-Home Salary Talent Retention Tax Tax Planning Teacher Technical Factors Tender Tips Touch Trade War Types of Tenders Unemployment Values Verify Aadhaar Waiving Off Water Webpages What Why and How to Evaluate Work Environment Writing Off Youtube deferred payment of advance tax e-Shram Portal higher education insolvency managerial skills scam training training courses world

Happy Moments

Learn and Update

Popular Posts

Auto_1

Horizontal Responsive1