Growth in the US Economy
Economic growth refers to the increase in the production of goods and service in the economy for a specific period (Panayotou p 144). The economic growth leads to an increase in the production capacity in the economy thereby creating an opportunity for the satisfaction of human wants. While some people argue that there is no growth in the economy, others believe that there is economic growth in the United States over the recent periods. A growing economy is characterized by increase in the employment rate, inflation rate, and health indicators.
There has been low economic progress after the great economic recession. According to (Corrado et al. p 663), the unemployment rate in the US increased in the year 2006 to 2010. The increase in the unemployment was attributed to the aging population who could not take part in any active economic activity in the country. This means that during this period the country experienced negative economic growth. However, the country has been making progress from 2010 to the current period. Currently, the country is making good economic progress towards obtaining full employment opportunity. The most recent economic data indicates that there has been increasing in the number of job opportunities. In the current economy, there is decline in the headline unemployment rate which stands at 4.4%. In the last seven years, there has been a consistent decline in the in the unemployment rate with approximately 180,000 new jobs created monthly as shown in the graph below (Corrado et al. p 666). In this regard, it is clear that the US has been experiencing the economic growth. Besides, to the decline in the unemployment rate, there is also an increase in the labor force participation which has greatly resulted in the US economic development.
The inflation rate is another factor that determines the economic growth of the US economy. The trend in the inflation rate was on the peak during the year 2006 and declined gradually towards 2010. This means that there was a growth of the economy during the year 2010 (Fernald, John and Charles P 45). However, after the year 2010, the inflation rate has been increasing and expected to rise higher in the recent coming years. The rise in the inflation rate has led to the rise in the food and fuel prices. With regard to the inflation rate, it can be said that there has not been economic growth in the country over the recent period. The rise in the inflation rate lowers the value of the domestic currency against foreign currency resulting in the domestic currency becoming weaker against foreign currency.
Additionally, the US national health indicates high growth in the economy. From the year 2006, the US citizen has been able to receive better health care services that have to enable growth in the US economy. The introduction of the universal in the US health care services has promoted good health of the citizens the act that allowed the increase in the productivity of goods and services (Gordon p 34). The growth in the national health expenditures by the government has facilitated active participation in the economic development and eventually the growth of the economy.
In conclusion, even though some people argue that there is no economic growth in the US following the great recession, I strongly believe that there is high economic growth in the country. The country has a progressive record of decline in the unemployment rate. The country also strives to attain full employment in the future, the act that shows high level of economic growth. Also, the health care services in the US indicates high level of economic growth. However, the inflation rate tends to affect the value of dollar and thus portray the US economy as declining.
Corrado, Carol, Charles Hulten, and Daniel Sichel. “Intangible capital and US economic growth.” Review of income and wealth 55.3 (2009): 661-685.
Fernald, John G., and Charles I. Jones. “The future of US economic growth.” American economic review 104.5 (2014): 44-49.
Gordon, Robert J. The demise of US economic growth: restatement, rebuttal, and reflections. No. w19895. National Bureau of Economic Research, 2014.
Panayotou, Theodore. “Economic growth and the environment.” The environment in anthropology (2016): 140-148.
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