Many people in the United States were worried when trump won the presidential seat. A person questioned is potential to lead America economy to the next level. Since Trump took over the government, he has faced serious micro economic factors that are limiting the progress of Americana economy. Below are some of this microeconomics issues.
United States debt
In 2008 many people were upset that United States government had increased the deficits from six trillion to 9 trillion over the last decade (Levy). This factor has affected trump administration because he is unable to sustain this growth. In the last financial year, 50 percent growth rate exceeded the growth of the gross domestic price. However, from 2008 United States debt has increased to about 15 trillion, or 67 percent within a brief period (Levy). This aspect has affected trump administration significantly because the every dollar earned in federal budget must pay the interest on the debt. Trump administration has raised taxes to all states, and as a result, they end up missing a positive economic multiplier impacts that are brought by private sectors. These factors hinder GDP growth of a country. The government requires GDP progress in tandem with debt decrease so that to create a balance of payment.
During trump presidential political campaign he promised American to create more jobs within the last three months. For the last few years, unemployment level in America had dropped. However, the rate margin is low; a survey of people looking to secure a job is high compared to those who are employed. Trump government has put tireless efforts to solve this issue; they have created a plan to establish 200000 jobs per month for the next three years to all federal states in America. If they can achieve this in next three years unemployment level will reduce.
Almost 3.5 million homes are behind payments, and other 1.5 million homes are about to be closed. According to Robert shriller, housing value will keep increasing, and possibilities of people owning a house will rise (Case &John & Robert). If the factor is not addressed, it will create slams. Houses are vital to a person balance sheet, and its value has a huge impact on the net worth. With housing problem, people borrowing habits are down, and consumer spending is affected. Whenever consumer spending is affected, the government will lose a lot of money because people are not contributing as expected. Rental prices are also continuing to increase as supply is decreasing.
This is important aspects because citizen health determines the productivity ratio of the economy. To this effect, Trump promised American he would improve Medicare. He made this issue his fast national goal to reduce health care costs and control health care spending. The current government has an account of 15 percent of total federal budget and 21 percent of all national health care spending
Over valuation of dollar
Many people will want the dollar to fall in value because they believe it will lower the cost of living among many Americans. In addition to this, we should regulate the import of foreign goods so that to make our product more competitive and rise demand in the market. The financial crisis of the previous years has made the dollar value what it is today.
Levy, Frank. "Dollars and dreams: the changing American income distribution." (1987).
Case, Karl E., John M. Quigley, and Robert J. Shiller. "Comparing wealth effects: the stock market versus the housing market." Advances in macroeconomics 5.1 (2005).
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