The U.S. Economy

The U.S. Economy

Introduction

The economy of the USA in year 2009 has reached towards the most precarious condition since Great depression. Hence balance of payment deficit, current and the capital account deficit and the negative balance of payment alarm cannot be easily ignored (Vukovic, 2011). In this paper, we will evaluate the forces that US adaptability changing the economic forces and US productivity growth. At the end of this paper, we will analyze the causes of financial and economic crisis in US and commenting on its reformation impact to the date.

Discussion

Forces Underlying US Adaptability

New high tech industries have been the important features for the economy of United States. The major forces that underlying US adaptability to change economic forces are the regional difference of each state; thus they experience periods of expansion and contraction as their basic activities dominating the local economy. Till 1970, US economy drives through slow growth and lower per capital income, while the federal government favoured the southern jurisdictions. The global low wages competitions are others forces require to make changes and adjustments.

US Productivity and Growth

The productivity growth is the critical part for the national economic competitiveness, the product and services become more competitiveness in the place of the global market. The US firms are engaged for producing better and the same output input (Buchheim, 2009). The indicators of the United States productivity surveyed the economic consideration about the economic competitiveness for living standards. Public supported that the lower tax rates and lower expenditures with heavy reliance on the need of each individual are the gateway of US growth success. Other analyst suggested that financial institutions play a major role for decreasing unemployment.

The major factor that influences the economy of United States is the labour market, and this is the key indicator that majority ...