US Economy: Growth, Indicators, and Challenges

Week 6 - Discussion
Even after facing several challenges faced by the country, US economy has represented 20%
of the total of global output that is still larger as compared to China. According to IMF
(international monetary fund), US is the sixth largest country that has highest per capita GDP.
US economy is well developed and technical advancement- based companies in the areas of
financial services, retail, healthcare, and technology. Service sector is the engine of the
country and US has a significant manufacturing base that represents 15% output. The country
is the second largest manufacturer and it is a leader in automobile, machinery, chemicals, and
telecommunication industry (Hanushek, Machin, & Woessmann, 2016). Whereas, the
primary sector represents less than 2%. US economy maintains a powerhouse status with the
combination of few characteristics. It has been observed that after 1940 to 1970, the country`s
GDP grew at the annual rate of 4%. While observing the GDP, it is seen that GDP is around
USD16692bn in 2013, USD17428bn in 2014, USD18121bn in 2015, USD18624bn in 2016,
and USD19391 in 2017. From the GDP, it can be seen that each year the country has
improved its GDP with a small proportion.
As far as the economic indicators are considered, it can be seen that unemployment rate
signifies that number of people who are able to earn their livelihood and does not contribute
to the economic growth. The unemployment rate was 7.4% in 2013, 6.2% in 2014, 5.3% in
2015, 4.9% in 2016, and 4.4% in 2017. The inflation rate of country is nearly 1.5% in 2013,
0.8% in 2014, 0.7% in 2015, 2.1% in 2016, 2.1% in 2017 and 19% in 2018.
Currently, it has been seen that the US faces slow economic growth in last five years and
reflects that 2.2% GDP growth in 2018. The reason of slowing GDP is that since the last
election, the bond price has been reflecting consensus faced by the US economy. The
economy faces discouraging sustainable of Lacklustre growth and inflationary pressures.

Especially calculating the growth rate, jobs in US market that is tighter as compared to the
pair of skinny jeans. It is noticed that only 3.7% people participated in labour force who are
out of work in September. Most importantly, it is announced that rate of 3.7% is the lowest
unemployment rate since 1969. American government has added 134000 jobs in 2019 this is
very below the expectation. Further, it is expected that US growth rate will slow 2.3% from
the 3% in 2018. The country will be 2% in 2020 and 1.8% in 2021. Economists have seen
that US`s economy will slow severely before of possible recession in 2020. The economy
was boosted in 2018 that has been increased and boosted by tax cuts, those economic factors
that fade in 2019. Although, it is expected that growth will soon be back to the long term pace
of 2%. This reflects that emerging and raising even after the recession in 2019 and 2019
clearly reflects that the economic conditions of the organisation are stable.
Week 6 - Learning Journal
The learning journal reflects interesting concept of economic indicators that identify the
economic performance of the country. This reflects the significance of technological changes
in the decision-making in the economic consideration. Although, it is fact that the economic
conditions are important but at the same time, social oughts has to be considered. The main
aim of this week discussion ensures that there should be balance between the economic
relying and social oughts. As organisation is the part of the society and society`s work and
income affects the national economy. The technological advancement should not be only
used for production purposes rather it has the potential to improve the living standards of the
hue population. Decision making related to technological changes are not very
straightforward because it implies that the potential negative external business conditions
affect the technological changes. This is undoubting that consumer`s decision making is
based on rational choices. Rational decision model assumes that the general human will make
choices, which will maximise the benefits within the minimum costs because it is assumed

that a customer always have given set of feasible options and constraints and among them an
appropriate choice is made to maximise the live decisions. However, it is important to
prioritise and integrate the negative external environment in order to chase the improved
efficiency by using the scare resources.
Additional response to other students post-1
Response to Manny
After studying the data of the US economy, with the help of some indicators such as
unemployment rate, GDP and level of inflation, a country determine its state and recognise
itself as underdeveloped, developing or developed. She has concluded that US is performing
well by analysing the last quarter`s GDP, inflation, and unemployment. I think there is no
detailed discussion of rise. For example- “he said that GDP is increasing each year since
2009”, that is absolutely incomplete as reasoning is an important aspect of reflecting growth
and decrease (Gasteiger, & Prettner, 2017). It is important to know that expanding economy
generally have low unemployment rate and what opportunities in the economy has raised the
employment rate. The post discussion lacks the relationship between three economic
indicators. At the same time, she has effectively defined the economic cycle with the example
of business cycle and how it affects the economic conditions.
Although there are few measures that is not being includes in the GDP factor such as worst
health of the workers, pollution, work-in-progress, and other ethical values. Other more
measures through which the conditions of the economy can be determined are human
development index, Gross sustainable development product and many more. Apart from this,
GDP indicates high standard of living as it is a rough indicator of people`s income but it is
not directly related or accountable to environmental quality. More of them are leisure, level