• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The question is will the U.S. economy emerge from its recent funk- or spiral into a full-blown recession?

Extracts from this document...


THE END IS CLOSER THAN WE CAN IMAGINE ! WRITTEN BY: JACOB STEVE ANTHONY ID: 00-01633-2 AMA INTERNATIONAL UNIVERSITY BANGLADESH The U.S. and Japan, countries of Strong economic background and measurable wealth are now at a stage of serious economic turmoil. Americans are living through a high level of anxiety. The question is will the U.S. economy emerge from its recent funk- or spiral into a full-blown recession? But there is light at the end of the tunnel; a lot of stocks are doing well. Despite awful headlines and a palpable fear, the average diversified stock fund has fallen a manageable 13% in the past year. Lots of people are doing well too. U.S. Job creation is growing at a faster pace this year than in the final months of 2000. Inflation is tame, and interest rates are falling fast, lowering the cost of mortgages and car loans. It looks like as if the economy in the U.S. is still in a very strong position, or is it? The signs of economic slowdown started to show up almost suddenly in the last quarter of the last year. In the third quarter of that year GDP registered a fall to 2.2 per cent and in the forth quarter it slumped to 1.1 per cent. During President Bill Clinton's era USA saw sustained economic growth almost on all fronts. Even in the first six months of last year (i.e. ...read more.


The Federal Reserve cut interest rates aggressively for the third time this year in a bid to keep the United States from slipping into recession. The "Feds" cut interest rates a total of 1 % bringing it down form 6.00 to 5.00, The Federal Reserve expects this cut in interest rate will boost the economy of the US and increase investment, due to this cut ion the interest rate the government said 141.9 million people were employed in March compared with 135.8 million in February, which shows a sign of slow economic reform, the strategy implemented by the US government is working and the US is slowly but steadily pulling out of this recession, but if not taken care of appropriately there may be a huge problem in the US economy which will affect the economy of the world tremendously. On the other side of the pacific another story has to be said. Japan has been suffering form a long economic stagnation for more than a decade, the recent slowdown of the US has effected the Japanese economy enormously, Japan is the second largest economy in the world and is totally export dependent on the U.S. As the demand for Japanese cars and electronics rock bottomed the Japanese have entered into an early phase of recession. Japan's problems make prospects of the U.S. economy look downright sunny. The main cause of the Japanese economic slowdown is this reduction in trade surplus, which is due to a fall of exports of Japanese commodities in the US markets. ...read more.


the coldness of the economic slowdown is felt very strongly, mainly by Japan, who is the largest exporter of electronic and automobiles to the United States. As soon as the slump hit America, Japans trade surplus plummeted to a rock bottom of a mere 64.8 trillion dollars in 2001 while it was at a staggering 800.9 trillion dollars at the beginning of the last decade. The Japanese economy slowly moved towards recession independent of the U.S. but the recent U.S. economic slowdowns have boosted the economy into ruins. Not only for Japan all major export countries to the US will be seriously affected due to reduced demand within the US economy. The scenario of 1932 is even closer than we think. The big question is whether this will indeed change is the months ahead, especially if the carnage in Wall Street continues. We might better cast our horizons lower - and look towards what the Joneses are doing. One afternoon last week Lindsey McKenzie, a nursing assistant with tree kids, tried on three pairs of sandals at George's Shoes in Boston. She held on to a black and a white pair wistfully. You could almost see her Neurons wrestling with the eternal question. "To buy or not to buy?" "I don't have the money this week," She finally told the clerk. She exited the store, her belt a notch tighter, figuratively. The fate of the worlds economy now rests on a billion such small decisions, played out in a store aisles and around kitchen tables across America. The end is closer than we can imagine! ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Retailing In India - A Government Policy Perspective

    than do supermarkets. Counter store operators either own the premises in which they operate or pay a nominal rent (set years earlier) that is far lower than the actual market value of the property. Most counter stores also save on power costs, paying residential rates that are nearly half the commercial rates paid by modern retail chains.

  2. Monetary policy of a globalised economy

    to the former countries and therby complete the exchange of present output for future output. Other considerations may also justify this. A country where output drops temporarily my wish to borrow from foreigners to avoid the sharp temporary fall in its consumption that would otherwise occur.

  1. How did rubber and tin in the Malay States affect the Singapore economy in ...

    It enabled local traders to obtain western imports in credit and in exchange, the foreigners are supplied with local produce when there is supply. Hence, the tin industry saw Chinese traders taking on additional services as they provided credit and financial services in addition to goods.

  2. This report will establish the opportunities and threats presented to Sony by the EU ...

    If Sony don't hire Lawyers and they break these laws set then they will be fined 10% of their turnover. This then leads to bad reputation by Sony, which gives Sony more expenses to be paid in the short run to bring up sales.

  1. How have interest rates changed over the last thirty years? What affects have these ...

    When the pound increases against other currencies, our exports become more expensive abroad, so exporters get less money. Also foreign goods become cheaper in Britain so British products are less desirable. Imports and Exports are factors of demand so when imports go up and exports go down demand within the British economy goes down.

  2. Should the government increase spending to get out of a recession?

    enterprise" That's the most powerful man on the planets view of the matter12. Long-term investment in human capital and enterprise is the way forward - apparently. This seems like a logical hypothesis: donating money to provide jobs in the long-term well increase overall job security, if there are more jobs.

  1. Liberalization: where it has lead us and where it is headed

    Thrilled by this unexpected windfall, the "Import Lobby" described the Chidambaram budget as a "dream budget". Unsurprisingly, this lead to a surge in imports that squeezed domestic producers and led to an industrial recession. Unmatched by a proportionate increase in exports, India's trade balance has steadily worsened.

  2. Free essay

    different sectors of economy

    This also includes water companies like Severn Trent water. Construction This sector includes house builders, civil engineers, electricians, plumbers, plasterers, joiners, painters and glaziers. Among them they build all types of buildings as well as motorways, bridges, roads and railways. * Tertiary Sector The tertiary sector (also called the service sector)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work