Question

In: Economics

I'm in need of a current news event (current as in this week 2/18/2018 - today)....

I'm in need of a current news event (current as in this week 2/18/2018 - today).

I have to write a paper and it must consist of an analysis of a macroeconomic related current event.

The article needs to be about these glossary terms:

balance of trade (trade balance)

current account balance

merchandise trade balance

unilateral transfers

exports of goods and services as a percentage of GDP

financial capital

national savings and investment identity

Solutions

Expert Solution

U.S. Economic Indicators

Throughout this site there are many discussions of economic indicators. At this time, the readings of various indicators are especially notable. This post is the latest in a series of posts indicating U.S. economic weakness or a notably low growth rate.

While many U.S. economic indicators - including GDP - are indicating economic growth, others depict (or imply) various degrees of weak growth or economic contraction. The Gross Domestic Product Q4 2017 Advance Estimate (pdf) of January 26, 2018 was 2.6%, and as seen in the February 2018 Wall Street Journal Economic Forecast Survey, the consensus among various economists is for 2.8% GDP growth in 2018. However, there are other broad-based economic indicators that seem to imply a weaker growth rate. As well, it should be remembered that GDP figures can be (substantially) revised.

Economic Overview of the United States

Despite facing challenges at the domestic level along with a rapidly transforming global landscape, the U.S. economy is still the largest and most important in the world. The U.S. economy represents about 20% of total global output, and is still larger than that of China. Moreover, according to the IMF, the U.S. has the sixth highest per capita GDP (PPP). The U.S. economy features a highly-developed and technologically-advanced services sector, which accounts for about 80% of its output. The U.S. economy is dominated by services-oriented companies in areas such as technology, financial services, healthcare and retail. Large U.S. corporations also play a major role on the global stage, with more than a fifth of companies on the Fortune Global 500 coming from the United States.

Even though the services sector is the main engine of the economy, the U.S. also has an important manufacturing base, which represents roughly 15% of output. The U.S. is the second largest manufacturer in the world and a leader in higher-value industries such as automobiles, aerospace, machinery, telecommunications and chemicals. Meanwhile, agriculture represents less than 2% of output. However, large amounts of arable land, advanced farming technology and generous government subsidies make the U.S. a net exporter of food and the largest agricultural exporting country in the world.

The U.S. economy maintains its powerhouse status through a combination of characteristics. The country has access to abundant natural resources and a sophisticated physical infrastructure. It also has a large, well-educated and productive workforce. Moreover, the physical and human capital is fully leveraged in a free-market and business-oriented environment. The government and the people of the United States both contribute to this unique economic environment. The government provides political stability, a functional legal system, and a regulatory structure that allow the economy to flourish. The general population, including a diversity of immigrants, brings a solid work ethic, as well as a sense of entrepreneurship and risk taking to the mix. Economic growth in the United States is constantly being driven forward by ongoing innovation, research and development as well as capital investment.

The U.S. economy is currently emerging from a period of considerable turmoil. A mix of factors, including low interest rates, widespread mortgage lending, excessive risk taking in the financial sector, high consumer indebtedness and lax government regulation, led to a major recession that began in 2008. The housing market and several major banks collapsed and the U.S. economy proceeded to contract until the third quarter of 2009 in what was the deepest and longest downturn since the Great Depression. The U.S. government intervened by using USD 700 billion to purchase troubled mortgage-related assets and propping up large floundering corporations in order to stabilize the financial system. It also introduced a stimulus package worth USD 831 billion to be spent across the following 10 years to boost the economy.

The economy has been recovering slowly yet unevenly since the depths of the recession in 2009. The economy has received further support through expansionary monetary policies. This includes not only holding interest rates at the lower bound, but also the unconventional practice of the government buying large amounts of financial assets to increase the money supply and hold down long term interest rates—a practice known as “quantitative easing”.

While the labor market has recovered significantly and employment has returned to pre-crisis levels, there is still widespread debate regarding the health of the U.S. economy. In addition, even though the worst effects of the recession are now fading, the economy still faces a variety of significant challenges going forward. Deteriorating infrastructure, wage stagnation, rising income inequality, elevated pension and medical costs, as well as large current account and government budget deficits, are all issues facing the US economy.


Related Solutions

International Trade and Politics are very much in the news today. •Research current event articles on...
International Trade and Politics are very much in the news today. •Research current event articles on American International Trade agreements with GATT, TIP and NAFTA. •Explain the Trump Administration’s view is on these agreements, how the view differs from the last administration, and what effect it has on current American Trade.
In your initial post, reflect on a current event in finance news or an event that...
In your initial post, reflect on a current event in finance news or an event that has personally impacted you or your work recently that can be related back to the course concepts. Briefly describe the event or link to a related story and, in relation to your selected event, share at least two key takeaways related to course concepts that have impacted your understanding of the selected event and reiterated the importance of appropriately applying these concepts in corporate...
the purpose of this assignment is to choose a current event and find two different news...
the purpose of this assignment is to choose a current event and find two different news sources that discuss that event. Some current events you may want to consider are: Canada’s response to Covid-19,the wildfires in the USA, the upcoming American election,the NBA, the Black Lives Matters movement, the WE charity scandal, etc. Guidelines:•Your thoughtpiece should contain your thoughts! You should discuss some differences you see between the two different news sourcesthat covered that same news item/event. oYour sources could...
Identify this current event highlighted in the news that relates to business strategy. You will submit...
Identify this current event highlighted in the news that relates to business strategy. You will submit a report that should include written analysis of the current event. In the report, you must discuss the current event, and then discuss how it affects the strategy of businesses that may be impacted by the current event. Airbnb Hires New CFO From Amazon Airbnb Inc. has hired another executive from Amazon.com Inc., this time naming Dave Stephenson as chief financial officer of the...
Critical Thinking of Current Affairs Collapse Select a major current national or international news event. Apply...
Critical Thinking of Current Affairs Collapse Select a major current national or international news event. Apply your sociological imagination and your critical thinking skills, using the six rules of critical thinking described in Chapter 1, to explain the event. Thoroughly discuss several reasons why this event is occurring (or had occurred). In your response, be sure to demonstrate your ability to become a "critical consumer" of this information by looking beyond common sense and critiquing the information available to you.
Choose a discussion topic related to a current marketing event at the beginning of the week...
Choose a discussion topic related to a current marketing event at the beginning of the week of September 27 - October 5. Throughout the week, gather data points related to the marketing event that will determine how successful it was. Share what you learn, including measurable data and what you can infer from it.
Pick a current or past news event and offer different explanations for why it happened. Include...
Pick a current or past news event and offer different explanations for why it happened. Include the different theoretical perspectives presented in chapter one in your answer. Psychoanalytic Theory, Behaviorism,Humanism, Cultural Psychology and Evolutionary Psychology ( This was what I wrote not understanding the question at that time). Topic: Increasing Suicide Rate Just In one week, two great celebrities took their own lives without any explainable reasons that we may know about, first the designer Kate Spade and then the...
Find current event news/article about Behavioral Finance, Summarize the article. Note: No handwriten
Find current event news/article about Behavioral Finance, Summarize the article. Note: No handwriten
Select one current event article from any news organization or website that relates to corporate valuation.  ...
Select one current event article from any news organization or website that relates to corporate valuation.   Provide a summary of the article, including how the article relates to the article relates to corporate valuation
I need to write a blog post on a current event new article in the United...
I need to write a blog post on a current event new article in the United States that pertains to Macroeconomics, could someone please point me in the right direction
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT