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American Economy Has For Decades Essay

After it however, the Bush administration fought hard to eliminate terrorism and most of the state funds went to the military; as a result, the United States is now struggling with its highest federal debt. Natural phenomena, such as tornados and hurricanes, have also had negative impact upon the economy. Effects first effect upon the American population has been that of increased unemployment rate. Agreements of international cooperation, such as NAFTA, have only managed to open the borders to cheap labor force; as a result, American multinationals outsourced their operations to Mexico or other cheap regions, throwing the U.S. citizen into unemployment.

A second effect, at a global scale this time, is that the purchasing power of the American population will decrease significantly. As a result, they will be unable to consume as they were used to. This will consequently impact the trade balance of the countries exporting to the U.S., which will no longer be able to sell their items. "The changes...

were critical for the global economy, which has become ever-more dependent on American consumption spending as the source of final demand. The gap left by a cutback in U.S. consumption was unlikely to be filled" (Beams, 2006)
Also on an international level, the workers in Mexico and other cheap countries will lose their jobs, as the American companies will no longer be able to make the payments.

References

Beams, N., August 18, 2006, Warnings of a U.S. Recession and Global Slowdown, World Socialist Web Site, http://www.wsws.org/articles/2006/aug2006/usec-a18.shtmllast accessed on July 16, 2008

Roberts, P.C., September 11, 2007, American Economy: R.I.P., Online Journal, last accessed on July 29, 2008

VanAlkemade, R., 2006, What Would Jesus Buy?, Warrior Poets

2008, the World Factbook - United States, Central Intelligence Agency, https://www.cia.gov/library/publications/the-world-factbook/geos/us.htmllast accessed on July 29, 2008

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References

Beams, N., August 18, 2006, Warnings of a U.S. Recession and Global Slowdown, World Socialist Web Site, http://www.wsws.org/articles/2006/aug2006/usec-a18.shtmllast accessed on July 16, 2008

Roberts, P.C., September 11, 2007, American Economy: R.I.P., Online Journal, last accessed on July 29, 2008

VanAlkemade, R., 2006, What Would Jesus Buy?, Warrior Poets

2008, the World Factbook - United States, Central Intelligence Agency, https://www.cia.gov/library/publications/the-world-factbook/geos/us.htmllast accessed on July 29, 2008
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