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Economics Causes Of Contraction 2001-2003  Term Paper

In hindsight, it appears that the labor department statistics concurred with the Kerry camp. When Bush still won, unemployment trend indicators seem to be coming true now and there seems to be more problems on the horizon for the economy. The Bureau of Labor Statistics indicated recently that new jobs being created in the economy were the types of jobs that cannot fuel economic growth. Thus, the economy is and will continue to lose jobs to cheaper labor markets around the globe. The Federal Reserve has dictated the cost of capital for businesses to borrow. Trends show that cash shortages in corporate American are increasing and borrowing heavily will be a likely result. Therefore, future actions of the Federal Reserve impacts a major aspect of America's future. Trends to observe by the Fed relate to consumer consumption and governmental spending. The Bush administration continues to have trouble paying its bills and they even have raised the national debt level. The Fed will continue to raise and lower interest rates in order to stave off inflation rates and keep the nation out of recessions. The federal government also has increased spending to maintain the cost of the Iraq and other governmental issues.

In conclusion, this report was about capitalism and...

Even thought the economy seems to be churning out great numbers, it does not mean the economy is going well. The overall economic health of the United States has been sending several mixed messages. The media shows that manufacturing orders are up and new home sales are also up. but, high unemployment figures, major problems with the airlines and growing trends of plant closings due to relocation and globalization send another message. Currently things are looking up...or, are they?
References

Employment Situation Summary. Ed. Bureau of Labor Statistics. 12/3/2003. Department of Labor. Retrieved on 4/13/2005, from http://www.bls.gov/news.release/empsit.nr0.htm.

Heilbroner, Robert, & Thurow, Lester (1982). Economics Explained: Everything You Need to Know About How the Economy Works and Where it Is Going. Englewood Cliffs: Prentice Hall.

Marx, Karl (1977). Capital, Volume 1. New York: Random House.

Marx, Karl (1978). Capital, Volume 2. New York: Random House.

Marx, Karl (1981). Capital, Volume 3. New York: Random House.

Stanley, Bruce. "China, U.S. Lead in Demand for Oil." Associated Press. 10 Dec. 2003.

Economics

Sources used in this document:
References

Employment Situation Summary. Ed. Bureau of Labor Statistics. 12/3/2003. Department of Labor. Retrieved on 4/13/2005, from http://www.bls.gov/news.release/empsit.nr0.htm.

Heilbroner, Robert, & Thurow, Lester (1982). Economics Explained: Everything You Need to Know About How the Economy Works and Where it Is Going. Englewood Cliffs: Prentice Hall.

Marx, Karl (1977). Capital, Volume 1. New York: Random House.

Marx, Karl (1978). Capital, Volume 2. New York: Random House.
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