United States Economy Is Better Than Advertisted

Over the last several years, the United States economy has experienced steady growth. While growth has been slow, it is evident that the American economy is making positive improvements.

Since President Obama’s first year in office, the unemployment rate has gone down from 10 percent to 5.3 percent. Gross domestic product expanded at a rate of 2.5 percent. Furthermore, the federal deficit is estimated to be $486 billion this year, which is about a third of deficit total in 2009.

However, as this article points out, if you follow the current political discussion, you would be likely to believe the economy is in horrible shape. Much of the discussion has centered around stagnant wage growth and growing income inequality. So why is there so much negative rhetoric surrounding the economy when we have clearly seen positive growth and encouraging signs?

This election cycle has no incumbent president running for re-election. The incumbent party has the difficult task of highlighting the successes of the party, but at the same time not appearing to be complacent. Therefore, the are more likely to highlight the weakness of the current policies and the president. In addition, the opposition party will focus on pushing the belief that the economy is in turmoil — as a result of the current president’s policies — and presenting their ideas for change.

The views of the United States economy are, undoubtedly, affected by the current outlook of the world economy as well. European nations are currently unstable, in large part due to the debt crisis in Greece. The future of the Chinese economy remains uncertain, as the currency has plunged and growth has slowed. Many are worried the troubles in China will begin to negatively impact the United States economy.

Lastly, the growth of the economy has not translated into any positive benefits for most Americans. Private investment has remained sluggish as companies struggle to generate more revenue for the top line. The investments are the main driver of productivity and as a result, wage growth. Therefore, wages have remained stagnant for many Americans leading to a negative outlook on the economy by many Americans.

Over the remainder of this election cycle, we will be sure to continue hearing about the many problems of the United States economy. Each presidential hopeful will continue to address and exploit these problems and introduce their plans and policies to address the concerns. However, it is important to understand that the economy is currently moving on a positive path while listening to these plans.

If you would like to learn more about the economic plans for some of the top presidential candidates, check out this website.