In: Economics
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
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.