Economy the United States and Term Paper

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The Bureau of Labor Statistics recently indicated that new jobs being created in our economy were not the types of jobs that fuel economic growth. It looks like the economy is and will continue to lose jobs to cheaper labor markets around the globe.

The Federal Reserve dictates the cost of money for organizations to borrow. The trends of continued cash shortages in corporate American our economy borrowing heavily. Therefore, future actions of the Federal Reserve will play a major part in America's future. Trends to observe for the Fed are the consumer consumption and governmental spending rates. The Bush administration is already having trouble paying its bills as they recently raised the national debt level. The Fed will have to continue to rise or lower interest rates to fight off inflation as well s keep the nation out of recession. The federal government's trends are once again increasing the deficit as the cost of maintaining Iraq and other governmental issues will continue to worry the Fed leadership.

The trend over the next eighteen months seems obvious. Iraq is nowhere near independent so countless billions will be spent maintaining the problem area and the recent weather catastrophes will cost the government a fortune to provide economic relief to victims. The consumer spending trends over the next eighteen months will also be of great concern to the airline industry. The Federal reserve must keep inflation in check so they will make sure that the goods America are buying at record pace will not fuel inflation.

For each of the economic indicators utilized to monitor and forecast the nation's economic outlook, a reconciliation of the monitored trends is in order.

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For the Gross Domestic Product, the U.S. And the World's GDP are well documented figures that can both be considered fairly accurate. The reconciliation for the trends for inflation as measured by the Consumer Price Index is obviously heavily dictated by the cost of oil. Although we can assume that oil prices will continue to climb, it is just that, an assumption.

The reconciliation for the personal income and unemployment trends focuses on the national and airline industry employment figures which are both accurate measures. The reconciliation for actions taken by the Federal Reserve is that governmental spending trends are much more true to the situation than the consumer consumption trends. Consumers can be convinced to buy cheaper products and less of the products but Governmental spending will influence the airline industry and the world for decades.

In conclusion, after analyzing economic indicators like the Gross Domestic Product, Inflation as measured by the Consumer Price Index, unemployment, capacity utilization, personal income and the actions of the Federal Reserve, unfortunately the economic forecast for the United States economy looks shaky over the course of the next few months. What the forecasts provided by the Gross Domestic Product, Inflation as measured by the Consumer Price Index, unemployment, capacity utilization, personal income and the actions of the Federal Reserve seem to be saying is for us to strap our belts a little tighter because it is going to be a rough ride......

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