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Savings
Savings
Early signs shown in 2006 when subprime loans went into default eventually freezing credit markets in 2007. What followed was interests rates increasing. The housing market crash lead to 3 million houses going into foreclosure increasing unemployment rate up to 10%. This incident was the worst since the 1980’s. This is a fiscal issue. -
Budget
BudgetMedicare, medicaid, and social security put pressure on economic growth which can only be halted by reducing spending on the project or sizable tax increases to help economic stability. This is a fiscal issue. -
Leadership
LeadershipThe budget deficit will reach an all time high in 2016 since the recession in 2008. In 2008, Obama spent nearly $800 billion on an “economic stimulus package” created to kickstart the economy after the recession. This was aimed towards benefitting the unemployed. Another factor towards the national deficit is how the recession reduced federal revenue as well as the war against terror. This is a result. -
Savings
SavingsRetail sales declined below market expectations which would indicate consumers are holding on to their money rather than spending it. Retail sales account for over ⅔ of the overall GDP, the main reason was gas prices falling letting consumers save money. This is a result. -
Trade
TradeThe US is suffering dramatically from over-trading overseas. As a country we buy much more product than we can pay for giving the country an extensive debt, ultimately sustaining a standard of living we can no longer afford. Along with the increasing debt, millions of american jobs are lost to the low wages of overseas workers contributing to the failing economy. This is a result. -
Leadership
LeadershipFor the first time in 10 years, interest rates are increasing. They stopped the rise of the rates to help the depressed economy, but now that the economy has recovered, they resumed rising rates. The government will monitor closely how the economy can handle the increments and adjust them accordingly. This is a monetary issue.
