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Headwinds of the US Economy: An Analysis

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Added on  2019-09-26

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This article analyzes the headwinds faced by the US economy, including unemployment, declining GDP growth, and imbalances in GDP expenditure. It also discusses fiscal and monetary measures to address these issues.
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Economics
Headwinds of the US Economy: An Analysis_1
1ContentsIntroduction..............................................................................................................................................2Unemployment and Labor Participation rate...................................................................................2Inflation rate.............................................................................................................................................3Declining growth of GDP......................................................................................................................4Imbalances of components of GDP expenditure leading increased debts and deficits.......6Fiscal and Monetary Measures...........................................................................................................7
Headwinds of the US Economy: An Analysis_2
2IntroductionIn today's era, it is impossible to think about any important business presentation such as on earnings reports, sales turnovers, revenue reports without the use of the term “headwinds” by the businesses. From the point of view of aviation, a headwind is a windthat pushes back against the front of the aircraft in contrast to a tailwind that acceleratesan economy. So if we talk about the business definition of headwind, it would imply all the situation or conditions that make the growth prospects much harder. Since the end of 2016, the United States is facing sluggish economic growth and still is experiencing major obstacles in efforts to boost full level recovery of the economy due to the followingfactors. . The problematic trends in the United States may lead to inappropriate spill-over effects on the overall global economy (TRADING ECONOMICS | 300.000 INDICATORS FROM 196 COUNTRIES, 2017).Unemployment and Labor Participation rateIn 2016, U.S. job growth has been disappointing. As per the monthly nonfarm payroll, (NFP) report in December 2016 stated a little of 38,000 non-agricultural jobs added in January 2017, much lower than the expected 162,000. The unemployment rate has been reported at 4.7% It is very important for the policy makers to take into consideration the labor force participation, as the official unemployment rate can be a misleading indicator to get an idea of economic recovery (Zero Hedge | On a long enough timeline the survival rate for everyone drops to zero, 2017).
Headwinds of the US Economy: An Analysis_3

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