Question

how do you feel about the rate of economic growth in the United States? Why do you feel that way? How has recent history affected growth in the United States?

Is Economic Growth always a good thing?”

Answer 1

The leading economic indicators of growth are steady growth, low unemployment and little inflation.The economy is measured by Gross domestic product which is the most important measurement of growth and the GDP of US in the second quarter of 2019 was$5,334, 475 million .Inflation was 1.6 % which was below the target of 2%.Stock prices tells how the economy is doing Stock prices reflect demand and health of the economy and in August 2018 , stock market came out of a six month correction which is considered healthy. When Interest rate is stable the economy is healthy and the Fed funds rate is 2.25%.The growth of the US economy GDP was 2.1 % in the second quarter of 2019.I feel the US should promote economic growth to increase more jobs ,increase wages , bring more tax revenue to build infrastructure, increase investment in education,give support to the defense sector etc.

I feel that way because the GDP growth fell from 3%in 2018 to 2.1%in 2019 and forecast for coming years is that the GDP growth will be 2%in 2020,and 1.8% in 2021.This forecast is according to the Federal Reserve committee on July 2019.Thus GDP growth should be encouraged as the US economy has slowed

Recent history of slowing down of the Chinese economy has affected US economy . China and US are engaged in trade war and the falling of rate of exports of goods and services to China has affected the US economy.

High GDP growth means more goods and services are produced and consumers in the economy benefit . This will lead to increase in demand and firms will employ more labor to increase production .However fast economic growth can lead to environmental pollution and create negative externalities like noise pollution,air pollution,etc.The increase in industrial waste will decrease social welfare.

.

.