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Economic Status Essay

Economic Report Card The nature of the economic world is in constant flux and changes, requiring the student of the subject to be aware of the many patterns and tendencies that are contained within any economic or market system. The purpose of this essay is to examine and compare the current economic situation of today to that of five years ago. This essay will explore the monetary and fiscal policies of the United States since 2009. This essay will explain how different indicators within the economy have the potential to paint different stories and ideas about the true health of the economy. This essay will argue that each component discussed must be held within the context of the larger economic picture in order for it to be totally understood and then implemented into a policy that may help correct or take advantage of that trend.

The Last 5 Years

It is widely accepted that in 2008, the United States experienced a major economic collapse that saw government bailouts, a welfare explosion and the hangover of constant war impact the environment in many ways. To most this was a bottoming out point in which a new low of American fiscal responsibility has been witnessed. Since that time the U.S. economy and fiscal policy has been on a rebuilding track.

Aurebach & Gale (2009) revealed the status of 2009 economic situation and presented ways in which the downward spiral would continue if certain approaches were not modified to represent a more balanced and focused outlook. They wrote "Adjusting for those factors, we project a 10-year deficit of $10.2 trillion, or 5.5% of GDP. In our projection, deficits fall to 4.8% of GDP by 2012 as the economy recovers, but then rise to5.0% of GDP in 2015 (even though the economy returns to full employment by then) and 5.8% of GDP by 2019. In 2019 alone, the difference...

Much of the fiscal and monetary policies were not fully understood nor divested by those who were willing to radically change the system. In order to fully understand where we are now, it is important to look at where we came from and how the current economic situation has reached the point it has where there appears to be much trouble and confusion about the best way to manage the economy.
Today's Status

The economy today is in much worse shape than it was 5 years ago as the failed attempts to modify the situation back then, are being felt right now. Stillwel (2014) recently reported that "Americans' expectations for the economy deteriorated to a seven-month low in May, a sign that the rebound from weakness earlier this year may be limited by still-cautious consumers." The general malaise that reeks around the media in regards to the economic outlook is very bleak and depressing as there are only slight glimmers of hope in only small corners of the market.

The mark of a strong economy is balance and a productive middle class that buffers the two extremes of the economy. The strength of this demographic has historically demonstrated the strength of the economy. As the middle class has mostly evaporated into a lower form of its former self, economic indicators no doubt can narrate this departure from grace. Snyder (2014) pointed out many of the failures that we are currently experiencing due to the post 2009 handling of the economic situation. He argued that "industrial production is down. Home sales are way down. Retail stores are closing at the fastest pace since the collapse of Lehman Brothers. U.S.…

Sources used in this document:
References

Auerbach, A.J., & Gale, W.G. (2009). The economic crisis and the fiscal crisis: 2009 and beyond. Urban-BrookingsTax Policy Center.

Bridge, R. (2013). 100 years of economic turmoil: Is it time to End the Fed? Russia Today, 23 Dec 2013. Retrieved from http://rt.com/op-edge/end-fed-us-paul-crisis-673/

Stillwell, V. (2014). American's Outlook for U.S. Economy Falls to Seven-Month Low. Bloomberg, 22 May 2014. Retrieved from http://www.bloomberg.com/news/2014-05-22/americans-outlook-for-u-s-economy-falls-to-seven-month-low.html

Snyder, M. (2014). 27 Huge Red Flags for the U.S. Economy. Press TV, 22 May 2014. Retrieved from http://www.presstv.ir/detail/2014/05/24/363906/huge-red-flags-for-us-economy/
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