Question

How is the economy doing

Answer 1

Economy's Doing great.

I will brief you about the past situation as well as the present scenario of the economy.

America prospered greatly in the late 1940-1950 period that is the post war period. Now there were many reasons of America’s economic prosperity. Now coming to the pointers, the one significant factor was the increase in defense services of America due to which, the country was able to grow exactly and nearly after the 2^nd world war. This created a huge impact for a country which recently was a significant player in the war.

The automobile industry was another factor responsible, the demand of automobile industry increased hugely between 1940 and late 1950’s. Hence the supply had to be increased. It almost increased by 3-4 times than before and this was a significant reason for the economic prosperity of America that happened.

After 1945 the major corporations in America grew even larger. There were various mergers that initially happened in 1920 but again it occurred when in 1950 created a huge impact on America’s growth. Many companies were established on the domestic land as well as on the international lands because of which there were a large number of profits that were being experienced by America. Take McDonald’s for example. It was huge game changer in the market and the country significantly grew because of that one major leading brand in terms of food in 1950. Because of that too, many other companies were established.

The personal income of US citizens was also increased at that time by the US government because the government wanted to make their citizens increase their consumption. It was indeed needed for the growth that had to be achieved in the national income and GDP of the country. This factor is what; every country’s government is most concerned about.

During World War II, women played a crucial role in America when their males were sent to foreign lands or borders to fight. This way most of the jobs were created for the women who were previously occupied by the male workers. Many women began working in factories or in manufacturing.

Even in the present, the situation is quite appealing. Consider the unemployment rates for example.

The most recent unemployment rate of US in April 2019 was 3.6%. This rate fell from 3.8% in March 2019. The rate of 3.6% is the lowest that Unites states have achieved in the past 60 years. To be precise, the unemployment rate has fallen for the adult men and women. The unemployment rate of teenagers has been not impacted by this. This unemployment rate or employment rate are affected by certain factors like education, health and competition. These affect the unemployment rate by affecting number of jobs, number of employed/unemployed and wage prices.

The unemployment rate of United States has been averaged at around 5.5% since the past 60 years and now has fallen to 3.6%. This poses how the economy is growing at a greater pace.