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The United States Economy Essay Example Studentshare

Leo Migdal
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the united states economy essay example studentshare

The economy of the United States has maintained a stable GDP growth rate. The economic freedom given to the private sector is the primary feature of the US. Coming to the present day scenario, the US economy is facing another economic downturn, the recession which took off in 2008. In 2008 almost the whole world entered an economic downturn which was because of lending patterns that involved the distribution of mortgages in the US. Loan losses in 2007 resulted in inflated asset prices. To add to this there was an increase, by leaps and bounds, in food and oil prices.

With this share and housing prices fell, and many banks and in the US faced huge losses and also suffered bankruptcy, which resulted in huge financial assistance from the public. This brought about a global recession which resulted in a growth in the unemployment rate, dropping commodity prices, and a drop in international trade. The global recession which the world is facing today has caused plenty of political changes and a lot of social unrest. The U.S. economy faces many challenges given the fact that it is recovering from a financial crisis. Virtually every sector of the economy was affected by the 2009 financial crisis.

Economic growth slowed down while unemployment rates increased. It is important to note that these conditions have not changed much. High rates of unemployment are still being reported in the U.S. During the financial crisis, the American economy shrunk and approximately 9 million jobs were lost. The unemployment rates have been alarming especially from 2009. The unemployment rate was 5% in 2008 but rose during the financial crisis to 10%.

Though they have declined to around 7.8% as of 2012, much has to be done because the number of people unemployed is still high (Lewis, 2013). It is paramount to note that despite the recovery that is being recorded in various sectors of the American economy, the figures are still very low compared to the drop that took place. On the same note, there are still the unpaid, and almost certainly impossible to pay, house mortgages which caused the 2009 financial crisis. Similarly, the euro crisis is likely to spill over to other parts of the world and America’s financial system is at risk. On the same note, there is reduction in spending due to the cut in government expenditure which is slowing down economic growth. All these factors are raising eye brows among economists because they form a perfect recipe for another economic crisis (Krugman, 2012).

In conditions like the one America is in right now, choice of policy is quite vital to boost the economy. It has been stated that the economy is recovering but not as expected. In order to strengthen economic growth and job creation, private spending should be improved through increasing disposable income. To achieve this, expansionary monetary policy is essential. Topic: City, Development, Urbanization, Town, United States, Wealth, Economics, Workplace The United State’s economic growth period is referred to as the gilded age and it is during this period the United States jumped to lead in industrialization.

The nation was then rapidly expanding and its economy was moving to new areas like into the industry of factories, coal mining and railroads. This period ranged from 1870’s to 1990’s and larger markets grew, commercial farming increased, ranching and mining stabilized and further a national market place was established. “Steel production in America is mentioned to have risen to surpass that of Britain” (Tindall and David, 67). Mechanization of industries also increased and this marked the gilded age’s search that would provide cheaper ways to creation of more products. This paper aims at describing economic changes that took place in the US around 1870’s and how these changes differ from the ones that took place in 1900’s. The paper will further indicate consequences and reactions to the changes of industrial work, law, urban development, agriculture and foreign relation.

During the 1870’s and 1880’s, economy of the United States had the fastest rate of rise ever in history. Wealth, wages, growth domestic product and formation of capital rose in a steady manner. Wages, distribution of wealth, human costs, labor unions, rural to urban migration, industries and technology increased beyond 1880’s and in the 1900’s the state was close to perfection. Wages that were paid to workers and employees increased more during the 1900’s as compared to the 1870’s, wealth became more distributed and most people could access wealth with poverty reduced and human costs... Labor unions arose and grew to fight for workers, industrialization increased with most people moving from the rural to urban areas in search of better lives and employment and technology started becoming familiar. More industries came up, expanded and were able to accommodate more workers, products and services.

For purposes of transportation, the railways if measured tripled around 1870’s to 1880’smore than before but later in the 1900’s it doubled making it improve more. The railways improvements gave rise to increase in commercial farming, mining, ranching and creation of market places. Development of the rail system in the United States during the periods of development has had positive reactions on the urban development, agriculture and industrial work domains. Railways began to be built in the south although it only concentrated on short lines that would link regions of growing cotton to river ports and oceans. The reactions given to the railway building increased the railway networks and later the rails were also linked to the sides of the cities (Spulber, 54). Faster developing financial systems followed and railways later attracted the subsidies of the local governments of the United States.

Freight rail road came up and played important roles in the economy of the United States. They got the use of moving imports and exports by use of containers and both coal and oil were being shipped form areas of production to areas of consumption. More freight locomotives arose together with those of passengers. These railways further led to rapid industrial growth and several far5ms got ready for mechanization. Cost of food lowered, national sales in the market increased, and engineering culture started to excel and modern management systems arose. During the nineteenth century, the railway system of transportation impacted the United States economy on bases of industrial work, urban development and agriculture.

Development of United States changed over time and developed more as the railway system also developed. Railways became the common mode of movement and connected one business to other. Markets could have sufficient goods to provide to clients and customers and this ensured a good flow of money in the market further increasing stability of the economy. These rails needed maintenance and at times could cost United States a lot of money for repairs and updating and this derailed the economy (Spulber, 89). So far the maintenance and damages of rails was the mentioned negative part of it in all dimensions. People were employed to operate and manage these rails creating a good form of employment.

The railway system thus had its changes making positive results to the urban development, industrial work and agriculture domains. Wages for workers was less and many people were put to slavery, especially people from the African countries. Workers had no voice in what they were paid yet they worked tirelessly to make ends meet. In the period of 1880s, 1890s and 1900s, this changed and however little the changes could be noticed. People who worked on farms, urban areas and in slums all had some voice that could cater for their needs. Wages increased and workers could be paid depending with how they worked and their posts.

Labor unions arose in the United States, making workers to know their rights and amount of wages that they should earn (Gallman and Wallis, 81). In the industrial work, urban development and agriculture, increased and meaningful wages had implications of bringing improvements. People’s lives improved since they were in a position to meet more needs. Besides, poverty and low living standards decreased, leading to further revolution in the industries and farms. Wages also increased transportation because the available salaries could now make the worker to afford transportation easily. Increased wages on the other hand also negatively affected the industrial work, urban development and agriculture domains.

By making workers earn more the available budgets became interrupted and derailed further development. Industrial work and urban development was most affected since most of their funds were used to pay workers. Labor unions that acted as openers also ensured the officials were paid and employed properly with some benefits that any employee could have. Reactions even wanted more wages to be paid to workers and the race to industrialization became stiffer and tougher. Workers underwent encouragement to work even harder and technological developments accompanied the system. Output of textiles increased, efficiency of steam power increased and iron making lowered the cost of fuel (Westlund, 17).

With both positive and negative effects on the domains that are important, increase of wages still deserves fluctuations and not only in the United States but worldwide. Inequality trends in the United States began revolving around the eighteenth and nineteenth centuries. Long term trends in inequality were now being erased several economic disparities was reducing. “Wealth distribution as a disparity in the United States started improving even the narrow groups were beginning to hold posts in the big issues of stabilizing wealth distribution”. In the industrial work and urban development domain, wealth distribution issue was most important and reactions to these gave more positive implications. “The top earners had national incomes in huge amounts and balancing wealth distribution was like a hyperbole when it was mentioned” (David and Tindall, 85).

Later, wealth distribution could be seen to improve and even the poor people could acquire wealth however little it was. Economic elites came up and great wealth could be inherited and most of this wealth gets to be permanent. The state of affairs started to prove the middle class to also flourish in the wealth generation bracket. With time, even the low class belonged in the bracket of wealth creation and distribution of wealth became uniform. Wealth distribution is a remarkable claim because it is not easy to make different classes have the same rights. On the bases of urban development, most wealth is made in the urban and United States ensured that wealth was distributed in the urban equally.

“Industrial works ensured industries also raised wealth and all classes of people were allowed to participate” (David and Tindall, 27). Agriculturally, productions were made also by both workers and employees. Just as making wealth was made free to everyone, ownership was also free and successfully even the poor came to own something. Wealth distribution came to melt grand historical sweeps that had existed over a long period of time. Survey of distribution of wealth thus is important in all aspects and should be done frequently in order to maintain the wealth distribution system. Development of industries marked the industrial revolution and was a major change during early 1800s.

Later in the 1870s, 1880s1890s and 1900 there was further remarkable improvement in the revolution. Reaction to industrial revolution enabled a positive gain in the interests of making more industries and since then several industries have come to exist. Hand production to machine production now came up and technology also improved. Industries came to exist and were vital in the domain of industrial work and urban development (Durkin, 58). Several industries developed in the urban areas, making people move from rural to urban areas with an aim of employment and better lives. Glass making came up, paper machines increased, whereas agricultural productivity made workers free to work in other and all sectors of the economic system.

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