ANALYSIS OF U.S. ECONOMY Essay Example | Topics and Well Written Essays - 500 words

ANALYSIS OF U.S. ECONOMY - Essay Example This may perhaps be the reason for the speculation over the state of the economy considering that during the second quarter the gross domestic product rate fell slightly lower than that which was produced in the first quarter of the year. However, these higher numbers may not necessarily mean that the economy is going to bounce back. There is still concern over the consumer spending as this only rose to 2.4% which was less than the estimation and this may well be a concern as consumer spending constitutes about seventy percent of the gross domestic product . There have been cuts in taxes to coax the consumers from spending more and this may perhaps have helped the situation. By cutting taxes to a degree which would encourage spending there may well be a rise in the gross domestic product and this would certainly be a big boost to the recovering economy. There are some economists who believe that within next year the rate may well rise to 3% and perhaps even more but it would be too e arly to measure the specific rate. Consumers have also gained confidence are now more welcome to the idea of spending. Incomes and spending have risen, which in result have led to a fall in the savings. The Bureau of Economic Analysis has submitted the figures of savings which have dropped from $622.8 to $614.8 from September to October. Figures such as these are a good sign that consumers are becoming more confident about spending money and this is a welcome boost to the industries and especially retailers (US Department of Commerce). The rate of the gross domestic product would not be the only assessment of the economy. Unemployment rates in the United States are at a high and have even increased to a rate of 9.8% (United States Department of Labor). According to one report, the rates are still lower than what the actual situation is at the moment due to the fact that those who have stopped trying to get jobs due to the slow economy are not being