Question

Briefly explain the US economy.

Answer 1

The economic freedom ranking of the United States is 76.6, making its economy the 17th-freest in the 2020 Index. Due mostly to a lower commercial freedom ranking, its overall score has declined by 0.2 percentage. In the area of the Americas, the United States is ranked third out of 32 countries, and its total ranking is far above international and global averages.

Over the past decade, economic freedom has decreased in America, largely due to unsustainable government expenditures and restrictive health care and financial market control, although ratings have stabilised in recent years. GDP growth has also been strong lately.

The lowest index metrics was clarified by reckless deficit borrowing by Congress and the President under the two sides: budget borrowing and fiscal stability. Approval of the newly renegotiated NAFTA (now the US-Mexico-Canada Agreement) could help ensure continued progress, and economic freedom could be strengthened by settling the U.S.-China trade dispute.

The United States has one of the most wealthy and diversified economies in the world. By eliminating burdensome restrictions and signing a massive tax overhaul bill into law, President Donald Trump spurred reasonably strong economic growth, but deficit spending has persisted unchecked. If recently applied tariffs are repealed, the protectionist trade practises of the Administration will increasingly be a burden on economic development. In January 2019, the Democratic Party gained control of the House of Representatives, dimming chances for passage before the 2020 election of new legislation impacting economic policy. Although services account for about 80% of GDP, the U.S. remains the second largest consumer goods manufacturer in the world and the leader in research and development.