Question

What is one of the major economic problems facing the United States today? Explain at least one instance of how this was a problem in the past, drawing on the past semester and the past three centuries of US economic history that we’ve studied. Although we have focused on many of the problems the US has faced and continues to face, we have also discussed several of its major successes. Pick one of these successes and discuss its economic effects.

Answer 1

In the past three decades , we can see that unemployment was a major economic problem which the U.S economy was facing. But we can see that the rate of unemployment is decreasing. This is one of its major success ---- the ability to tackle unemployment.

Unemployment occurs when there are not enough jobs for everyone who are willing to work.

A balance between inflation and unemployment is always required. In most cases, spending more money in order to reduce unemployment will increase the prices. Similarly ,for reducing inflation the amount of money spent must be reduced which may lead to unemployment. A balance the two is necessary. The US was able to address this problem

The central economic issue which the U.S economy is facing today is productivity. The productivity growth increased drastically between 1920 to 1970 and then it started decreasing. It is true that there has been improvement in digital technology, but the pace of innovation has slowed down. The demographic factors , the level of education, inequality, globalisation and climate change are the main factors which pose as a barrier for faster growth.