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A good number of Americans are becoming increasingly aware of the deteriorating state of their country’s economy. This can largely be attributed to the increased trade deficits and importation of expensive services. The U.S. credit crunch and the rising national debt are attributed to the war in Iraq and Afghanistan, which is supported by the tax dollar.
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As a matter of fact, economic experts agree that the law, economic, and monetary policies are responsible for the decline in the economy. Citizens have their share by being complacent, too preoccupied with their activities so that they cannot take any mass action to save the economy. In view of the same, most jobs in the country will become virtual and international where the profit is shared among a number of the countries hence reducing the GDP (Latimer, 2010).
The economy spiral behavior is attributable to the high gas prices and lowering of interest rates. The Federal Reserve’s measure of lowering the rates has an effect of weakening the dollar as most investors would not save but would borrow more and more (Latimer, 2010). This pumps more money into circulation and consequently lowers its value. Even hoping that the recession is ended, the U.S. economy will still records high rates of unemployment. In addition, there is a fear among the investors to invest in this economy, because of a slump indicated by the slow rate of recovery. To date, congress intends to raise the tax rate to suppress the trade deficit, which would then reduce the national debt. The measure is aimed at reducing government’s spending from a step to cut the budget figure.
Most Americans in a recent CRC-ORC poll agree that the economy state will be worse in the near future. In a recent forecast, China is believed to be the world’s economic power by 2030 followed by America, which will be successful in energy production technology.
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