Question

What is your prediction about the future of the U.S. economy? Looking ahead, say, twenty years, what specific transformations do you expect to see? Why?

Note : answer should be in a paragraph.

Answer 1

US economy has services as well as manufacturing sectors, but the futuristic outlook will make the US economy to be more of a service based economy and manufacturing sector jobs will come down. in the future, the manufacturing companies will keep key process areas within the USA, but other non-key areas will be outsourced to the other low cost nations such as India and China. Besides, the country like China will cause a big dent to the jobs as more US based companies will opt for the manufacturing contracts in the country of China.

The GDP growth rate is projected to be 2% to 3% in the next 10 to 20 years time and major drivers of the growth will be retail services, IT services, travel & tourism, education and eCommerce in the US economy. Besides, the federal debt level will also increase due to the excessive pressure created by the high health care cost and other social security expenditures. These two sectors, will remain to attract the highest share of the budgetary expenditure.

Regarding regulations, Federal Reserve, the FTC and other regulatory bodies will form to regulate the market. Though, the spirit of the free market economy and private property rights are preserved, but proactive initiatives will be taken to prevent the occurrence of financial crisis of 2008.

Here, specific transformation will be to move from manufacturing to service sector, budgetary shift from military to health care and proactive regulatory framework in the US economy. It will happens due to the more number of US companies going global, prevalence of global sourcing and lack of military based interventions and focus upon health care.

So, the overall future outlook of the US economy is promising, but manufacturing sectors and jobs will suffer.

Reference:

Top Nine Economic Predictions for the Next 10 Years. Retrieved from: https://www.thebalance.com