Detailed Report: Analysis of Current US Economic Issues and Challenges

This report provides an analysis of the current economic issues in the US. It examines the US government's efforts to address regulatory loopholes and the impact of market volatility on the stock market. The analysis covers factors such as low economic growth, high-interest rates, and faulty economic policies. The report also discusses the role of monetary policy, the challenges posed by taxation schemes, and the significance of international trade for the US economy. Furthermore, it touches upon the potential economic impacts of global events like the nuclear threat from North Korea and terrorist attacks. The conclusion highlights the contrasting issues faced by the US economy and the government's attempts to address them.

DESCRIPTION OF A CURRENT ECONOMIC ISSUE IN UK
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Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................3
Conclusion.......................................................................................................................................4
Reference List..................................................................................................................................5
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Introduction
The assignment presents an outlook of the US economy in recent years. The analysis has been
done in a very comprehensive manner such that everyone can relate to the facts and concepts of
the ideas which have been presented in the assignment.
Analysis
The US government has been trying to assess the loop-holes in the regulatory framework which
has caused major ups and downs in the economic scenario of USA1. The analysis has been done
based on the fundamentals which mainly focus on the causes and neglecting the effects.
According to the director of a US bank has claimed that there is no significant interconnection
between the financial markets and the shape of the real economy in the US2. The stock market of
the US has suffered a major blow due to its volatility. The overall economic growth of the US
economy has been significantly low in the past few years. The prevailing rates of interest are also
high in the US. However, the current real economy of the US has to somehow adjust to the
growing uncertain situation. The economic policy which has been implemented till date stands
faulty and is not capable to recover the growth rates of the US economy. The aggregation of all
these factors resulted in a distortion in the US economy. It was very hard to come out of this
situation3.
The Wall Street Journal showed that the US was experiencing a phenomenon known as
economic freedom. However, there is still a matter of worry because there is a significant
reduction in government expenditure and trade4. According to the Heritage index, the US
economy is still struggling to escape from the hands of monetary freedom5. The monetary policy
1 Forbes.com (2019), The U.S. Economy in 2019: Challenges And Lower Expectations, available at:
https://www.forbes.com/sites/alejandrochafuen/2019/01/03/the-u-s-economy-in-2019-challenges-and-
lower-expectations/#77240a2b3d87 (Accessed on: 20.09.2019)
2 Lindauer, David L. 2017. Maintaining perspective on the economic issues of today. Society 54, (1) (02): 2-3,
https://search.proquest.com/docview/1865256675?accountid=30552 (accessed September 25, 2019).
3 Lindauer, David L. 2017. Maintaining perspective on the economic issues of today. Society 54, (1) (02): 2-3,
https://search.proquest.com/docview/1865256675?accountid=30552 (accessed September 25, 2019).
4 Forbes.com (2019), The U.S. Economy in 2019: Challenges And Lower Expectations, available at:
https://www.forbes.com/sites/alejandrochafuen/2019/01/03/the-u-s-economy-in-2019-challenges-and-
lower-expectations/#77240a2b3d87 (Accessed on: 20.09.2019)
5 Odmalm, Pontus, and Betsy Super. 2015. If the issue fits, stay put: Cleavage stability, issue compatibility and
drastic changes on the immigration 'issue'. Comparative European Politics 12, (6) (11): 663-679,
3

should be able to stabilize the money at the point of equilibrium. The entrepreneurs should also
show an increased incentive towards attaining this targeted money supply rate along with the
joined efforts of the commercial banks. According to many critics and journalists, the US
economy will face new challenges in the coming year due to faulty taxation schemes and
inefficient regulatory norms6.
However, the trading partners of the US are placed in a good position. This is a very good signal
for the US economy because it can earn a lot of revenue from involving in international trade
with the global giants7. However, many economists feel that this projected rate of growth will not
thrive for many years due to downturns in the global scenario. This may affect the performance
of the US economy along with the relative performance of the global giants in the trading
market8. Many economists fear about the nuclear threat posed by North Korea would have had a
major impact on the world economy. Others predicted there are terrorist attacks which are very
common nowadays. It has impacted the US economy and resulted in a major economic downturn
in recent years. Many investors even fear to invest in the US due to the highly uncertain and
volatile situation of the economy (Odmalm & Super, 2015).
Conclusion
The assignment concludes that the current US economy is experiencing several contrasting
issues which are hard to tackle with. However, the new government is trying its level best to
tackle the situation in a bold manner.
https://search.proquest.com/docview/1609234137?accountid=30552 (accessed September 25, 2019).
6 Forbes.com (2019), The U.S. Economy in 2019: Challenges And Lower Expectations, available at:
https://www.forbes.com/sites/alejandrochafuen/2019/01/03/the-u-s-economy-in-2019-challenges-and-
lower-expectations/#77240a2b3d87 (Accessed on: 20.09.2019)
7 Lindauer, David L. 2017. Maintaining perspective on the economic issues of today. Society 54, (1) (02): 2-3,
https://search.proquest.com/docview/1865256675?accountid=30552 (accessed September 25, 2019).
8 Odmalm, Pontus, and Betsy Super. 2015. If the issue fits, stay put: Cleavage stability, issue compatibility and
drastic changes in the immigration 'issue'. Comparative European Politics 12, (6) (11): 663-679,
https://search.proquest.com/docview/1609234137?accountid=30552 (accessed September 25, 2019).
4

Reference List
Forbes.com (2019), The U.S. Economy in 2019: Challenges And Lower Expectations, available
at: https://www.forbes.com/sites/alejandrochafuen/2019/01/03/the-u-s-economy-in-2019-
challenges-and-lower-expectations/#77240a2b3d87 (Accessed on: 20.09.2019)
Lindauer, David L. 2017. Maintaining perspective on the economic issues of today. Society 54,
(1) (02): 2-3, https://search.proquest.com/docview/1865256675?accountid=30552 (accessed
September 25, 2019).
Odmalm, Pontus, and Betsy Super. 2015. If the issue fits, stay put: Cleavage stability, issue
compatibility and drastic changes on the immigration 'issue'. Comparative European
Politics 12, (6) (11): 663-679, https://search.proquest.com/docview/1609234137?
accountid=30552 (accessed September 25, 2019).
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