It is noteworthy that the USA economy is the world’s largest national economy with a bigger percentage of activity from the customers. Within 230 years, the USA has grown to a large integrated and industrial oriented economy that constitutes ? of the world’s economy. The main characteristic of this economy lies in private decision hence creating economic independence. Also modified by the following: low regulation levels, taxation and involvement of the government in addition to a judicial system that utterly protects rights to property and does contract enforcements. Unfortunately at this time the USA economy is not at the right track.
Coincidentally enough there is a world wide view that this powerful economy has sharply reduced its pace and its conditions are not expected to reduce any time soon. This might sound quite pessimistic but its reality as there are crystal clear indications that the USA economic growth is currently well below its unbeatable historic trends. One of the indicators of this occurrence is the slowly widening gap between the wealthiest and the poorest which is reported to have widened than it was 16 years ago. This is in terms of affordability of items, accessibility to basic human requirement and general income.
Another indication is the national dept that can be sighted at the moment as about 10. 3 trillion dollars. This heavy dept definitely makes budget allocation to change as more funds would be channeled to the dept clearance other than other much needed services by the people of USA. These indications and many others show the slow down of the US economy. There is need to change some aspects and policies to ensure reduced or even prevention in the future. There is need to address these economic issues to ensure a comfortable life for the upcoming generations maintenance of the countries economic status, and offload the country from its depts.
That could pit it into bankruptcy. There is need to change the taxing system. Taxing should be done not to burden the low class citizens because of their low income. The government should also be careful with the trade agreements it makes. These agreements should be critically looked at before any considerations are made. This is because some agreements finally bring about little profit or losses to the economy hence impacting the economy negatively or positively. Subsequently these should be trade balance to ensure the investments does not deteriorate and affect liabilities to foreigners.
The US government should also attempt to equalize income policies t reduce the alarmingly rising gap between the rich and the poor. The monetary policy in enactment should be partly amended to prevent depreciation of the dollar. Military expenditure should be regulated and if possible reduced to channel resources to other productive uses such as consumption and investments. This enables faster growth and increased employment. Exchange rates should also be looked at to avoid using foreign currencies instead of local currencies for all transactions. Projects concerning other countries should be keenly observed at the proposal stage.
This is because some projects consume a lot of tax payer’s money yet they diminish the sovereignty of the countries involved hence interfering with the world’s perspective of USA. When USA image is tinted, foreign trade is interfered with ad the economy is affected. Conclusively it is factual that many policies put in place are appropriate except a few. These few policies should be reviewed and necessary changes made. Currently there is a wave of change of government. The incoming government should not rubbish al the past policies but should review them and changes made where necessary.
It should incorporate its economic policies into the current ones but change the ones that require change then introduce their policies to replace the non applicable ones. This will ensure there is reduction in the national dept, minimal impact of taxing on the citizens, improved trade and reduction of the gap between the wealthy and the poorest. All these would not be done overnight but it is possible.
Ellen frank. (2004). the raw deal. NY: Beacon Press. Tomasi, M. (2007). World economy. California: MIT Press. Heinn, T. (2006). America in focus. Washington: McGraw Hill.