United States Economy: Beginning of a Depression?
The crash of US economy has begun! US economy, the largest and the most important economy in the world, is going through one of the most worst economic crisis in its long rich history. The failure of the US housing and credit markets have lead America to a situation that it is facing today. The foreign investors are pulling out of the United States and are investing in Asia instead. The US economy being the largest economy in the world is also the big driver of the global economic activity and any downturn in its economy affects the major economies of the whole world.
The effect of this economic recession can be detrimental on the people of America as they have to cease all their spending that further eternalize the on-going crisis. An article on MarketPlace.co.uk warns that, “We are in for a protracted period of economic depression – a depression much worse than the Great Depression, a depression that would likely be remembered in history as ‘The Second Great Depression’ or ‘The Greater Depression.’
In the midst of economic depression, politicians are making apocalyptic statements about the economy in order to calm the masses. But this is proving to be ineffective as the people are really worried. A large number of big and small companies are taking pre-emptive measures by cutting their workforce in large numbers, cutting budgets and advertising costs. The sales of the new and luxurious products are also sinking.
In a survey a large number of Americans believed that the sudden outbreak of the economic depression will surely have a drastic impact on their lives. There will be millions Americans who will be homeless, unemployed and hungry. The US dollar is also facing imminent collapse. The economic stimulus package provided by the government is not helping in restoring the consumer confidence in the stock markets and economy.
These impending US crises have led to rise in the level of inflation. The prices of the essential food products and commodities are on a record high. Also, the rise in oil prices has raised the cost of the fertilizer and food transportation. The private consumption in USA is lacking the momentum. The US economy is certainly experiencing a low growth rate. The falling stock prices is causing the companies to reduce any fresh hiring’s and capital spending.
The government is playing a very pivotal to restore the consumers confidence in the stocks market. They are taking certain important decisions and policies with regard to monetary and fiscal policies. The federal government is initialing all the necessary and corrective measures in order to ensure growth and stability of the United States.
What America needs in this hour of crisis, a president who is fiscally responsible. One can really hope that newly elected President of America, Barack Obama brings cheers to the people of America and to the whole world by resurrecting the struggling US economy.
The effect of this economic recession can be detrimental on the people of America as they have to cease all their spending that further eternalize the on-going crisis. An article on MarketPlace.co.uk warns that, “We are in for a protracted period of economic depression – a depression much worse than the Great Depression, a depression that would likely be remembered in history as ‘The Second Great Depression’ or ‘The Greater Depression.’
In the midst of economic depression, politicians are making apocalyptic statements about the economy in order to calm the masses. But this is proving to be ineffective as the people are really worried. A large number of big and small companies are taking pre-emptive measures by cutting their workforce in large numbers, cutting budgets and advertising costs. The sales of the new and luxurious products are also sinking.
In a survey a large number of Americans believed that the sudden outbreak of the economic depression will surely have a drastic impact on their lives. There will be millions Americans who will be homeless, unemployed and hungry. The US dollar is also facing imminent collapse. The economic stimulus package provided by the government is not helping in restoring the consumer confidence in the stock markets and economy.
These impending US crises have led to rise in the level of inflation. The prices of the essential food products and commodities are on a record high. Also, the rise in oil prices has raised the cost of the fertilizer and food transportation. The private consumption in USA is lacking the momentum. The US economy is certainly experiencing a low growth rate. The falling stock prices is causing the companies to reduce any fresh hiring’s and capital spending.
The government is playing a very pivotal to restore the consumers confidence in the stocks market. They are taking certain important decisions and policies with regard to monetary and fiscal policies. The federal government is initialing all the necessary and corrective measures in order to ensure growth and stability of the United States.
What America needs in this hour of crisis, a president who is fiscally responsible. One can really hope that newly elected President of America, Barack Obama brings cheers to the people of America and to the whole world by resurrecting the struggling US economy.
Labels: US economy
posted by Komal @ 5:25 AM
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