“The Most Pressing Issue in America” Intro According to the United States Census, The goods and services deficit was $540. 4 billion dollars in 2012. Goods can be defined as physical objects such as shoes and shirts and services are actions and activites that one person preforms for another such as haircuts or dental checkups. As a percentage of U. S. gross domestic product: or the dollar value of all final goods and services produced within our countrys boarders in a given year, the goods and services deficit was 3. percent in 2012. Our nations deficit has continued to expand over the years due and becoming one of the ey factors to our high inflation rate of 2. 3%. The overall pressing issue of America’s struggling economy is leading to additional pressing issues such as unemployment and poverty, which leads me to believe that our countrys national deficeiet and recession are therefore the most pressing issues America is facing today.
Many of us have heard our grandparents talk about the “good old days” when you could buy ice cream for a nickel or a movie ticket for a quarter, as opposed to now where a simple small ice cream cup is usually equivalent to about three dollars. Inflation is directly responsible for these rises in price. Today consumer price inflation is averaging at……. Theories for the cause of our countries inflation range between three theories that the demand for goods and services exceeds exsisting supplies, so prices skyrocket.
Also, it is also believed through the cost-push theory that when producers raise prices in order to meet increased costs inflation also occurs. In addition, inflation occurs when there is too much money in the economy at once. High inflation has numerous negative effects on the economy. For example, it can virtually erode purchasing power. In an inflationary economy, a dollar cannot buy he same amount of goods as it did in the past, as I stated previously in my ice cream example.
Inflation also can deteriorate income, in other words people who have wages that are equivalent to the inflation rate, don’t see a difference in their real income, whereas people who do not work with wages such as doctors, businesspeople, and lawyers have to raise their prices and wages to keep up with the rising inflationary increase. Interest rates are also affected by inflation, people are given an amount of interest on their money in their savings account but their return n that money depends on the inflation rate, savers can loose money if the inflation rate is higher than their banks interest rate.
Economists can measure how healthy the economy is by totaling how many people are unemployed, or figuring out the unemployment rate. Economists agree that in a prooporly functioning economy, an unemployment rate of around 4 to 6 percent is normal. Today the unemployment rate is at……. Unemployment has also led to many discourages workers who have stopped searching for employment and to many underemployed workers that are working at Jobs for which they are over-qualified. Despite numerous government welfare programs, many Americans still lack lack sufficient food, clothing, and shelter.
According to the government, a poor family is one wnose total Income Is less tnan tne amount requlrea to satlsTy tne Tamllle’s minimum needs. That income level becomes known as a “poverty threshold”, if families make less than the threshold they are considered impoverished. According to the Census Bureau, the overall poverty rate in 2011 was 15. 0 percent which means 46. 2 million people were living in poverty in 2011. Addtionally 16. 1 million children (persons under 18) living in poverty in 2011