Current State of Us Economy
Peter Nesi
Bus 100: The Contemporary Workplace
Short Essay 2
US Economy
Jan/08 Aug/08
Unemployment Rate
4.9%
6.1%
GDP
1.5% (roughly)
2.5% (roughly)
CPI
4.3 %
5.4%
PPI
7.4%
9.6%
The US economy has been becoming a slowing economy as we approach the second quarter of the 2008 fiscal year. The GDP has increased from January 2008 to August 2008 but still there has been a large increase in unemployment rates. The CPI according to http://www.whitehouse.gov/fsbr/esbr.html#income has been on an incline from January to August as well as the PPI. The Federal Reserve Bank or Fed has had its hands full with the GDP sending mixed signals. Although GDP is increasing, the Fed 's primary concern remains inflation. Federal Reserve Bank chairman Ben Bernanke, has expressed that slowing economic growth is his primary concern but at the same time promote some growth. To do so, the Federal Reserve Bank and Treasury will greatly reduce interest rates, raise taxes, and raise the money supply through his fiscal policy and monetary policy. I do not think the current state of the economy can officially be considered as in a recession but it is definitely slowing which has its negative and positive effects. Its negative effects are that a slowing economy usually means more unemployment. The positive effects is that inflation will not become to big a problem. The economy is my perspective is somewhere in between an economic boom given the rise in GDP and a recession while leaning more towards a recession given the high unemployment, increased business failures, and an overall drop in living standards around the country.
Peter Nesi
Bus 100: The Contemporary Workplace
Short Essay 2
Bibliography
US Economy
Hilsenrath, Jon. (2008, September 30) "Fed and Treasury Are Left With Familiar Aresenal" The Wall Street Journal, A3.
The White House. 2008. 1 October 2008. <http://www.whitehouse.gov/fsbr/esbr.html#income>
Schaefer, Steve.
Bus 100: The Contemporary Workplace
Short Essay 2
US Economy
Jan/08 Aug/08
Unemployment Rate
4.9%
6.1%
GDP
1.5% (roughly)
2.5% (roughly)
CPI
4.3 %
5.4%
PPI
7.4%
9.6%
The US economy has been becoming a slowing economy as we approach the second quarter of the 2008 fiscal year. The GDP has increased from January 2008 to August 2008 but still there has been a large increase in unemployment rates. The CPI according to http://www.whitehouse.gov/fsbr/esbr.html#income has been on an incline from January to August as well as the PPI. The Federal Reserve Bank or Fed has had its hands full with the GDP sending mixed signals. Although GDP is increasing, the Fed 's primary concern remains inflation. Federal Reserve Bank chairman Ben Bernanke, has expressed that slowing economic growth is his primary concern but at the same time promote some growth. To do so, the Federal Reserve Bank and Treasury will greatly reduce interest rates, raise taxes, and raise the money supply through his fiscal policy and monetary policy. I do not think the current state of the economy can officially be considered as in a recession but it is definitely slowing which has its negative and positive effects. Its negative effects are that a slowing economy usually means more unemployment. The positive effects is that inflation will not become to big a problem. The economy is my perspective is somewhere in between an economic boom given the rise in GDP and a recession while leaning more towards a recession given the high unemployment, increased business failures, and an overall drop in living standards around the country.
Peter Nesi
Bus 100: The Contemporary Workplace
Short Essay 2
Bibliography
US Economy
Hilsenrath, Jon. (2008, September 30) "Fed and Treasury Are Left With Familiar Aresenal" The Wall Street Journal, A3.
The White House. 2008. 1 October 2008. <http://www.whitehouse.gov/fsbr/esbr.html#income>
Schaefer, Steve.
Bibliography: US Economy Hilsenrath, Jon. (2008, September 30) "Fed and Treasury Are Left With Familiar Aresenal" The Wall Street Journal, A3. The White House. 2008. 1 October 2008. <http://www.whitehouse.gov/fsbr/esbr.html#income> Schaefer, Steve. "Slow U.S. GDP Slows Wall Street." Forbes.com 2 September 2008. 1 October 2008 < http://www.forbes.com/2008/02/28/briefing-gdp-bernanke-markets-econ-cx_ss_0228markets14.html>