Development of the US economy over the PAST 3 YEARS 2007 2006 2005

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Development of the US economy over the Past 3 Years

The American government has been successful in running its economy for the years 2005 , 2006 and 2007 as shown in continuing productivity growth , the low level of inflation as well low interest rate . This therefore attempts to discuss or dramatize the success of the American Government been in running its Economy over the last three years . Since any success will have to be explained on what actions the American

government has , this will therefore describe and evaluate the main macro economic policies used by the American government , if there is any , over the last three years

How successful is the American government in running its Economy over the last three years ? The American government performed well in terms of GDP and other growth measures for the last three years starting from 2005 up to the third quarter of 2007 . GPD growth was recorded to have an average of 3 from 2005 up to first quarter of 2006 . This slowed down a little starting from second quarter of 2006 (2 ) to first and second quarter of 2007 , but the third quarter of 2007 appeared to started showing higher increases at 3 .9

In describing the state of the US economy , Poole said .The U .S . economy is highly productive , profit-making opportunities abound interest rates and inflation are both relatively low and stable ' The economy is however not without any challenges to face . Said challenge is not the business cycle but how the US economy will adjust on many fronts to the baby boom generation retirement but Poole believes that the U .S . laws and institutions will enable the country to face these challenges with a better deal of buoyancy than in some other countries that is facing or will be facing the demographic challenge sooner

Poole expressed an assurance that the U .S . economy is fundamentally sound . He cited the fact that surveys of business economists over the past few years regularly pointed to key sources of strength of US economy and these include a dynamic and flexible labour market and a financial system that rewards innovation and risk-taking by channelling capital to its highest rates of return ' He explained that the US market-based economy will allow companies the ability and the incentive to innovate and to adapt quickly to changes in relative demands for goods and services ' Thus he observes that present managements responding promptly to various shocks that shock the economy and according to him this is a growing dynamism of the U .S . economy which be believes is satisfactorily illustrated by the rise in the economy 's rate of productivity growth that has began as early as 1995 and there is still no sign of let up even at present

One way to check economic performance is the level of inflation Poole said , that inflation as measured by the all-items CPI called headline CPI inflation...