Solution
David answered on
Dec 26 2021
Running Head: ECONOMY 1
Economic Challenges
Running Head: ECONOMY 2
Introduction
In the era of globalization, there is no boundary between the nations. Due to this the
change in the economy of one country affects the economy of the countries. As a result, there
are similar issues in each country. On the other hand, the changes in the economic structures of a
country due to social pressure also motivate the other countries to make changes in their
economic structure (Freya & Osborne, 2017). In this context, this paper has aimed "to identify
the four most important economic challenges faced by a country" Further this paper will present
the solution for each economic problem. To conduct this project, United States is selected as a
country.
Economic Issues
The economic growth of the United States is continuing, but it below than the
expectations of the government and its people. There are several other factors that are affecting
the economic policies of the country and creating big issues to the federal government of the
country and its economic policies (Chetty, 2016). Some of the economic issues are discussed
elow which are facing by the United States in the year of 2017.
Limited Jobs and Poor Wages
If the rate of unemployment is low and wages of employees are rising, then it is a clear
indication that the economy of a country is healed from economic recession (Freya & Osborne,
2017). In this context, some of the economists in the United States believe that the country is
close to complete employment to people. It means employees in United States can get a new job
quickly.
But the majority of economists say that there are enough places to the federal government
of the country to improve the job market in the country. After the economic crisis in the United
Running Head: ECONOMY 3
States the employment rate is near to 78% that were as similar as 2008 data. In this context, the
ate of unemployment was 7.3% in last October month for Americans who have not got a high
school diploma (Chetty, 2016). On the other hand, the unemployment rate was 8.9% for black
men in the United Stated age group of 25-34 (Chetty, 2016). But the scenario related to
unemployment in the rural areas is just different. This is reached in double digits. Hence, it can
e stated that the people of the United States are still facing the issues related to unemployment
that plays an important role in the economy of the country.
Slow Productivity Growth:
In the context of the economy of a country, productivity is defined by the economic
output, which is produced by the average worker in an hour. It is a more obscure concept in the
comparison of wages or jobs. But it plays an effective and efficient role in the economy of a
country (Al
izio, Kozluk & Zipperer, 2017). The growth of productivity gives place to raise the
level of the income and living standards of the countryman without the more hours working for
everyone (Olsen, 2017). In recent years, the productivity level in the economy of the United
States is rising with slow growth in the comparison of previous decades. Due to this the
productivity report of the United States defines that there was no change in the productivity
graph of third quarter of 2016 in the comparison of the same quarter of 2015 (Porter, Rivkin,
Desai & Raman, 2016).
Running Head: ECONOMY 4
Figure 1: Decline in Productivity Growth
(Source: Porter, Rivkin, Desai & Raman, 2016)
As per the economist of the country, the slow growth rate of the productivity does not
only affect the economy but also gives reason for the growth of the other economic challenges.
Figure 2: Slowdown in Economic Growth Rate by Decade
(Source: Porter, Rivkin, Desai & Raman, 2016)
Due to slow growth, the growth in wages will be also slow because poor productivity of
the worker may not help the companies to pay high wage to them. Slow economic productivity
of the United Stated is also forcing the federal government to get more debt and also creates a
Running Head: ECONOMY 5
ig issue in the pay off of debts. Some of the economic experts say that the innovation of internet
and other production related technology is not as significant economically because of their
adverse impacts on the existing jobs (Al
izio, Kozluk & Zipperer, 2017).
Declining Dynamism
As per the economic report of the federal government, the economy of the United States
is still in the constant motion. This is because of cretin reasons. People were acquiring jobs and
after sometime leave them. Companies were using government facilities and budget to establish
their business in market and go out of the country and business (McDonald & Benton, 2017).
Families were moving to grab better opportunity elsewhere after picking-up stakes. Yet that
motion has been decelerating in recent decades. This is because the changes in the moving
pattern. Now, Americans do change in their jobs less repeatedly. The movement in the
companies from markets has also reduced and fewer companies are moving only. These trends
make wo
y to the economists of the country because above defined motion was an important
part of the economy of the United States and they played a significant role in improving
economic strength of the country (McDonald & Benton, 2017).
It can be explained with the help of some examples. Turnover of the jobs helps the
workers to find the job which matches their expertise that also makes them more productive. But
the reduction in the turnover means employees are not changing their jobs and trying to adjust
themselves to the existing jobs that may affect their...