Monetary Policy, And Monopolies Analysis

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Running head: The Economy, Monetary Policy, and Monopolies The Economy, Monetary Policy, and Monopolies Shalanda Massenburg Professor Lloyd Amaghionyeodiwe ECO100 December 4, 2012 Analyze the current economic situation in the U.S. as compared to five years ago. Include interest rates, inflation, and unemployment in your analysis. The United States is the most advanced countries in the world. There has been a downfall in the number of houses being sold; interest rates have hit rock bottom, and a record weakening in the federal budget balance. All this is due to the downward fall in the economy. With all those things taking place within our economy, it is still not where…show more content…
According to the U.S. Census Bureau, median household income in the United States dropped 2.3% in 2010 after accounting for inflation. Overall, median household income in the United States has declined by a total of 6.8% once you account for inflation since December 2007. Should we be excited that our incomes are going down and that a record number of Americans slipped into poverty last year? Should we be thrilled that the economic pie is shrinking and that our debt levels are exploding? All of those that claimed that the U.S. economy was recovering and that everything were going to be just fine having some explaining to do. Back in the year 2000, 11.3% of all Americans were living in poverty. Today, 15.1% of all Americans are living in poverty. The last time the poverty level was this high was back in 1993. It is important to keep in mind that the government definition of poverty rises based on the rate of inflation. If inflation was still calculated the way that it was 30 or 40 years ago, the poverty line would be much, much higher and millions more Americans would be considered to be living in poverty.…show more content…
U.S. consumers will spend approximately $491 billion on gas this year. That is going to be a brand new all-time record. Right now, the average price of a gallon of gasoline in the United States is $3.649. That is 94 cents higher than 12 months earlier and it is a brand new record for this time of the year. Size of the economic pie The size of the economic pie in America is shrinking, and the share of the pie for those that are poor is shrinking a lot faster than the share of the pie for those that are wealthy. According to the Washington Post, the average yearly income of the bottom 90 percent of all U.S. income earners is now just $31,244. When you look at the ratio of employee compensation to GDP, it is now the lowest that is has been in about 50 years. At this point, the poorest 50% of all Americans now control just 2.5% of all of the wealth in this country. Big corporations are recognizing the change that is happening to

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