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Syndicate I Team Member : 29112003 | Widya Wardani 29112006 | Gekan Purnama Zainal 29112032 | Eliandri S. Wulandari 29112098 | Imam Hudori 29112114 | An Am Ta
America History
United State of America (USA) or United States (US) is a federal republic consist of fifty states and a federal distric. (Washington & North America). Is the thirt largest country by land area and population. One of the worlds most ethnically diverse and multicultural nations. On July 4, 1776, delegates from the thirteen colonies unanimously issued the declared of Independent which established the United States of America. Barack Hussein Obama is the President of America.
US
Europe area
Japan
China
In the US, activity is projected to rise by 1.9% this year and by a further 2.8% in 2014. GDP in the euro area is expected to decline by 0.6% this year and then rebound by 1.1% in 2014, while in Japan GDP is expected to grow by 1.6% in 2013 and 1.4% in 2014.
Macroeconomic Outlook of US
1970s 1990s Economy was plagued by persistent inflation Periodically high unemployment Slow growth in productivity Rising inequality and large Federal budget deficits.
Macroeconomic Outlook of US
Well executed monetary and fiscal policies-each focused importantly on their respective long-run goals of achieving price stability and reining in deficit spending-played some role in creating economic conditions that fostered non inflationary economic growth. The business landscape by allowing, indeed forcing, businesses to focus more clearly on a more competitive market place with fewer constraints and increased flexibility.
The United States is grow more Slowly Population growth slowly in a view decade
The analysis dates to 1790 and puts the newborn US at around a 30% debt-toGDP ratio, with the debt a bit higher than $75 million.
Economic History of US
Economic History of US
A distinct change from the 1970s and 1980s, decades in which the economy was plagued by persistent inflation, periodically high unemployment, slow growth in productivity, rising inequality, and large Federal budget deficits. 1970s, as two major oil shocks were followed by simultaneous inflation and recession. The massive and costly recession of the early 1980s and the collapse of oil prices in 1986 broke the back of the very high inflation rates that had emerged in the late 1970s. But as unemployment fell below 6 percent in the late 1980s, core inflation started to climb again.
Economic History of US
Between 1973 and 1993, GDP growth received a boost from the large numbers of women and baby-boomers entering the work force. But at the same time, persistently slow productivity growth (averaging less than half of what it had been during the preceding 25 years) kept GDP growth in check. in 1993 that the U.S. economy could achieve and sustain low unemployment rates, moderate inflation, or robust productivity growth. The Federal Government seemed incapable of balancing its budget, and there was little to suggest that U.S. incomes could grow more rapidly than those in other major industrial countries.
US Economic Timeline
Monetary Policy in US
"monetary policy" refers to what the Federal Reserve, the nation's central bank, does to influence the amount of money and credit in the U.S. economy. What happens to money and credit affects interest rates (the cost of credit) and the performance of the U.S. economy. The goals of monetary policy are to promote maximum employment, stable prices and moderate long-term interest rates. The Fed can maintain stable prices, supporting conditions for long-term economic growth and maximum employment. The Federal Reserves three instruments of monetary policy are open market operations, the discount rate and reserve requirements The FOMC formulates the nations monetary policy. The FOMC committee discusses the outlook for the U.S. economy and monetary policy options.
The interrelated factors lie behind the extraordinary economic gains ( of 1990s) : Business Organizational Changed
Technology Innovation
Public Policy
It is Creared the virtuous cycle in which developments in one area reinforce and stimulate development in another
The Omnibus Budget : In 1992, the new (Clinton) administration wan elected to promise to turn the (Federal Budget) deficits around. In 1993, The administration was able to deliver on the promise The market responded quickly to this serious effort to address the deficit : Lowering expectation of inflation Long term interest rates accordingly fell
"The Clinton administration clearly benefited from an expansion that began well before the election and well before they ever passed a single piece of economic legislation. This administration was clearly hurt by being greeted with a recession and the implosion of the technology bubble well before we ever passed any part of our economic policy."
George W Bush was elected as the President of United States, 27 February 2001
Several economic uncertainities condition. Unenployment and inflation were at low levels. Technological and innovations and organizational changes associated with the emergence of the socalled new economy. Business and consumer confidence fell. Federal Reserve reduced interest rates by a total of one percentage point in January alone. Nasdaq stock market had declined by more than 50%. Inflation remained subdued, unemployment remained at low levels and the US dollar remained strong on currency markets.
Condition Analysis
Previous Condition
Budget debates seem to come down to an old, tired argument. Too much government crowds out initiative and hard work, private charity and the private economy. Tax Regulation & Policy Tax relief or right or urgent with faltering
New Condition
Leave those arguments to the last century, and chart a different course. New governing visions : government should be active, but limited, engaged but not overbearing. Honor hard work, never punish it Help the lower interest
Resolution : 1. Create economy growth and opportunity (put money back into the hands of people who buy goods and create jobs. 2. Act quickly : tax cut often come too late stimulate economy recovery, give an economy an important jump-start by making tax relief retractive.
Bill Clinton
VS George W. Bush Era
Comparison Analysis
In 2001, Bush Cut the Tax rate
From January 1993 to December 2000, businesses created over 21 million jobs. Businesses only created 141,000 under the Bush Administration. Businesses created nearly 150 times as many private sector jobs under President Clinton than they did under President Bush.
Economic Recovery of US
The economy is recovering because consumers are spending, resisdential contrustion is growing, business investment remark ok, and net exports have not been drag on the ecomony. The recovery has been slow because of continued weakness in the labor market, the loss of household wealth, the overhang of motrgage foreclosures anf underwater mortgages, and the decline in government spending. The Federal Reserve has kept the Federal Fund rate close to zero and use quantutative easing. This has raised the inflation concerns (ex. Oil prices).
As $7.4 trillion decline in US household net worth erased all increases in the wealth-income ratio. The household saving rate jumped higher and is projected to remain above trough. US trade gap has begun widening as imports pick up. The rise in inflation has been a concern to tohse who see the FEDs huge balance sheep as likely to cause monetary inflation.
Conclusion
Macroeconomy is best seen as a system of interlinked markets, all tending toward equilibrium. Disturbances or shocks may temporarily divert markets from equilibrium but they will tend to return without government intervention. Government intervention intended to stimulate the economy or reduce unemployment can only have a very short. The new economy is that it reflects an exogenous surge in innovation and capability in the high-tech sector.
Conclusion
Inovation is strongly demand driven so the old or traditional economy was a vital driver of innovation in high-tech. A highly competitive economic environment in which new companies enter and expand and old companies contract or die is one that fosters the adoption of innovation.