The overall state of the economy Essay
The overall state of the economy
M r. President! It is with due respect that I would like to express my gratitude for the invitation. Owing to the major issue at hand, we are aware that most countries are still grappling as a result of the after effects of the Economic crunch that has been taking place. The meltdown has mainly been triggered by our banking system liquidity crises which resulted to the collapse of large financial institutes in a short span of time. The housing market suffered tremendous losses; this lead to increased cases of eviction mostly experienced by the middle class (Miller, 2010).
Our capitalistic nature makes it had for resources to be shared equally. This has resulted to increased joblessness as many strive to make ends meet. In history, this is considered our worst economic situation after the great the great depression of 1930s. In as much as this has been so we thank your government for implementing the stimulus package to caution our economy. This presents us with a different dimension to the situation, when dept is encouraged the need arises to beg for support from bodies such as the IMF which may not be forthcoming. By doing so, we only aggravate the situation further.
We ought to analyze the fundamental issues so as to get a clear picture of the existing structural factors as well understanding competing strategies with the world in attempts to caution our nation from the slump. (Miller, 2010) Who pays for the crises? The housing market incurred bad debts mainly from housing loans. Before the slump properties were valued highly than they are, this investments were carried out in anticipation that the prices were likely to raise thus get huge profits in return. It didn’t turn up as expected though thus many were indebted.
The financial sector has been trying to pass the cost to the labour market. We have also seen the provision of plans to pass the cost of maintaining the payment on the tax payers. This rises the question about how prepared your government is to handle such a situation due to the repulsive effect that may be unforeseen. The current policies make it had for our Economy to thrive. There also exist a big deficit due to the mixed priorities; this is because most of the budget is spent in ammunition as a result of the fight against terror (Bergsten, 2005).
If this funds were channeled towards economic revamp this would see more job creation. There exist a short fall between the income generated from revenue and the elevated spending. In the current fiscal year there exists a deficit of $ 1 trillion this is about 9. 2% of the total GDP growth. In as much as there is reversed inflation the Economic outlook is still subdued, this still is a far fetched dream. The adverse effects The adverse consequence posed by this deficit is quite enormous.
Going by the current state of affairs it’s estimated that spending will hike than normal due to the increased cost of living; to a large extent though I hope there will be a decrease in expenditure, this is due to the rebound activity at the financial market on the other hand more resources ought to be channeled towards such sectors such as healthcare, social security, as well as net interest, this is meant to speed up recovery. Future outlook The future outlook is highly depended on the critical decisions we make. I therefore would love to ask you Mr.
President to spearhead a reform agenda that will see policy change. To be included I suggest the downsizing of troop deployment across the world. Our nation is at war, this is not a conventional war but a fundamental war thus a new approach to way we handle such issues ought to be developed. This is likely to lead to increased corporation with other countries thus translate to more trade. Your government should therefore practice good policy reforms; at this may not come by easily. (Bacevich, 2009). Conclusion A bird in hand is worth more than a thousand in flight, lets harness the resources we have.
These are the building blocks of a better tomorrow; a better tomorrow will lead to a better world with peace and prosperity. Though going through turbulences, turbulent times calls for drastic solutions. I hope you will stand for what we believe in and see the realization of a better world. Reference Bacevich, A. J. (2009). The Limits of Power: The End of American Exceptionalism. New York: Henry Holt and Co. Bergsten, C. F. (2005). The United States and the world economy: foreign economic policy for the next decade. Washington DC: Institute for International Economics. Miller, D. A. (2010). The U. S. Economy. New York: Greenhaven press
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 11 September 2016
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