Review of the Current Macroeconomic Situation in the US Essay

Review of the Current Macroeconomic Situation in the US - Essay Example Unemployment situation in the US Young Americans are one of the worst sufferers of recession that has followed the global financial crisis of 2008. Although almost all open economies in the world have been affected at varying levels, research suggests that unemployment situation in America is grave. While other developed and developing economies have gradually been able to create employment opportunities for citizens, rate of unemployment in the USA for the age group of 16 years to 24 years is approximately 16.2 percent. This rate of unemployment is considered very high by policy makers in USA and also other countries across the globe. It has been apprehended that even if the rate of unemployment falls over the years, the impact of current unemployment would linger around for several years in the near future. Over the next ten years, members of the American labor force would experience a drop in total expected earnings by US $20 billion. Building on recent research reports published by Center for American Progress, economists have estimated that approximately US $22,000 per person has been lost in earnings (Ayres, 2013). This loss in earnings (depicted by fall in wages) holds serious economic implications for individuals, private corporations as well as the government. Higher unemployment would result in delay in repayment of student loans that would lead to ballooning of student-loan debt (Ayres, 2013). In the short term, the delay in repayment of debt would lead to loss in earnings by the financial institutions. These institutions would be unable to extend fresh debts, thereby, foregoing opportunities of higher earnings. Besides, the long... This essay aims to comprehensively observe current set of macroeconomic policies, carried out by American government to tackle the economic consequences of global financial turmoil In the essay, the stability in the price level is regarded the main aspect, that affects healthy economic growth in the country. One of the major reasons of concern for the US government is the high rate of unemployment prevalent in the economy. It is undoubted that the economy is recovering, but at an unsatisfactory rate. This rate of growth is frustrating for the economists and policy makers in the economy, since such rates of growth are deemed insufficient. In order to take the economy to higher levels of growth, economic performance by the country has to be boosted up. Different aspects of the economy have to be considered for the study of performance of US economy. These aspects are represented by the variables, such as rate of inflation and unemployment and level of recession in the economy. Persistent weakness of the housing market in U.S. is one of the major concerns for the economy. The US economy is characterized by tightening of credit conditions and availability of credit in different sectors in the economy, which is responsible for deleveraging of the U.S. households. The government has adopted contractionary fiscal policies along with accommodative monetary policies. Policy of large scale asset purchases is aimed at sustaining downward pressure on the long term rates of interest that would support the mortgage and real estate markets