The 'running out of time' article published on January 7th, 2013 The Economist edition describes the economic growth in the United States. A graph retrieved from the National Bureau of Economic Research by the author shows an expansion in economic growth from the time of the Second World War to the year 2001. Employment opportunities available to the citizens determine economic growth. Economic growth is the rise in the level of goods and services produced by every person of a population in a specific time. Economic growth is measured as the percentage rate of rising in the real gross domestic product. The author states that the country will take a full decade to recover from the recession just like it did during the 1990s. The author states that due to limited time, Chairman Bernanke declared new beginnings to be used as strategies for decision making on time to initiate the interest rate of the Fed's benchmark. Interest rates can be increased by improving the labor market thereby increasing the country's economy. According to Bernanke, the economy is better when it is near the recession as the Fed's policy rate are low.
The author of this articles argues that recession began due to the end of the business cycle expansions. The business cycle is the rising and falling of economic growth occurring over time. The stages of business cycles are expansion, peak, contraction, and trough and help a country in decision making. According to the author, the American economy fails to grow from one business cycle to another due to the low rate of economic growth. The author argues that America can experience a downturn in its economy if there is no fast growth rate. A fast-growing economy increases the chances of employment and reduces the risk of the employed people losing their jobs. The author also states that a fast-growing economy increases the interest rate thereby avoiding recession. Employment growth rate increases the economic growth rate and according to the research done by the author, the employment growth increases by 153ooo in 2012 with the payroll rising to 155ooo jobs. The author argued that the collection of data was inaccurate due to the similar number of employed people in 2012 to that of 2011.
The author argues that time is essential in contrast to the way the Fed acts as if time does not matter. The economy permanent damage is caused by the longevity of current adverse situations affecting the economy. For instance, the unemployment problem taking too long to be solved causes inflation. The author states that Washington takes into consideration the disappointing growth rates that make it hard for the government to stabilize the country's growth due to its pending debt burden. Fiscal policy is used by the government to secure the economy by adjusting the revenue and government expenditure levels. The fiscal policy applies taxes and spending because tax influences the country's economy through determination of the sum of money the government expends while spending is used to drive government money to particular sectors that need economic enhancement. The author discusses that America can remain in a slow-growing economic equilibrium like Japan to enable it to eliminate various massive debt without impacting the interest rate. In contrast, America's leaders are more concerned about the present economic growth without noting the limited time they have to fix the country's economic growth.
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