Analisys of the Current State of Teh Us Economy

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Roa-1
Jeff Roa
Richard Elliman
Business 1100
June 11th, 2012
Analysis of the Current Status of the U.S. Economy
While digging into economic trends for the previous three years in the United States, only one word came to mind when assessing where we stand now. Recovery. The recession from 2007-2009 had many lingering effects we didn’t really start to get out of until 2010. Taking a look at our GDP, unemployment rate, and CPI, surely you will agree. First let’s take a look at GDP. Starting in 2009, the GDP was down 2.5 percent based on current dollars, at 13.9 trillion. In 2010 we started to make our gains with an increase of 4.2 percent for a total of 14.5 trillion dollars. In 2011 we continued this trend with an annual increase of 3.9 percent for a total of 15 trillion dollars based on the current dollar. And so far we are right on track for maintaining continued gains with a first quarter showing of an increase of 3.6 percent posting 15.4 trillion dollars. What could have caused this increase in GDP? One possible answer to that question is unemployment rate. Dating back to the recession of 2008 the unemployment number started to climb from around 5 percent to the five year high of 10.1 percent in October of 2009. By June of 2010 it dropped to 9.4 percent, only to gradually climb to 9.8 percent by November of the same year. March of 1011 it was down to 8.9 percent and held at 9.1 percent from June through August. It continued to decline to 8.3 percent from August 2011 through January of 2012. It reached its five year low in April of 2012 at 8.1 percent and currently is at 8.2 percent. A continual increase in employment clearly had a part to do with the increase in GDP. We all know what happens next when more people are working. That’s right, inflation. In 2008 when unemployment was on the rise, the CPI-U only averaged an increase of 0.1 percent to 215.303. In 2009 and the highest mark of unemployment the CPI-U declined...
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