Macroeconomic analysis
Summary
The article assesses the American economy and its predetermined forecast for the next five years. According to the article, it was initially expected that the country would experience a financial turmoil in the economy but a review in this quarter’s overall national financial outlook illustrates a different scenario. The findings of this quarter, as opposed to consumer confidence which has diminished by the previous quarters economic outlook, America is set to experience tremendous economic growth in the coming five or so years.
Analysis
This article is not only factual but has also been backed by professional information which has been listed by the numerous authors specialists who were consulted in the making of the original report. This article is thus resourceful and its content is just superb. Additionally, the report has used previous quarter’s financial figures to forecast the future of the American economy for the coming half-decade. This article is exceptional as it has also assessed the spending habits of the United States and the tax policy changes that are about to be enacted in the coming year. Briefly, this article has also assessed the possible effects of Obama’s reelection in this year’s elections, terming his reelection as less impactful as previous thought.
Main Macroeconomic Concepts
The article has used a number of concepts related to the discipline of Macroeconomics. One of the vital considerations made by this paper is assessing the economic forecast for the next five years. With more emphasis on the consumer spending, this article has assessed the numerous possibilities of the United States financial market. Another major concept assessed in this article is the tax policy of the country. The tax policy of any country has direct effects on the economy. For the United States, the increase in tax cuts is likely to send the prospecting country into a huge recession, one similar to the one experienced in the 2007 real-estate flop. These concepts relate to the class text books in that we are taught about these facts on a daily basis in class. The tax policy, the country’s spending habits, recessions and inflation are basic concepts taught in class.
Implications of the New to the US, world Economy, solutions and alternatives
The rapid enactment of corrective measures to the United States current financial economic are needed urgently. If left unattended to, with the United States being a superpower and a major influence on the country’s economy, there is a huge possibility that the financial backdrop of the country will lead to unresolved financial issues in the rest of the world. As such, strict measures need to be employed such as the institution of a corrective mechanism before the commencement of the next fiscal year, 2013. Alternatively, the United States would have elected a new president to institute different financial measures, such as Romney’s suggestions, which could have or could have not been effective. The country also needs to regulate its spending habits and seek alternatives to the taxation issue, as the increment in tax will only lead to the financial pitfall of the country.
Relevance
To anyone in the country or elsewhere in the world, the fall of the American economy will lead to severe effects being felt by practically everyone. For families, the cost of living will increase, the rates on land too and the increase in tax will decrease the disposable income for family use. For students, the cost of living will skyrocket too and there is a huge possibility so will tuition fees. This article is relevant in that it informs all readers of a possible financial failure, and thus prepares them psychologically and financially for the coming year.
Key Terms Used
• Economy
• Jobs market
• Economic outlook
• Financial markets
• Spending cuts
• Tax increases
• Economic growth
• Index of consumer
• Fiscal cliff
• Quarter
• Gross domestic product growth
