overall economic condition
this comment u will see on attach Word from classmate is come from PPT statistic . and the prof replay my classmate and he ask him question . I need to participate on this discussion comment and answer the prof question’s.
I need for 2-5 line
I give to u the PPT slids for statistic to know how the my classmate write this information not to do . for my comment I need replay on my prof and classmate comments .
Statistical Analysis Statistical Analysis U.S. Economy Per capita GDP and GNP Another source Consumption and Household net worth (per capita) Ratio of household liabilities to GDP: If you believe that excessive household debt was the main problem, then the economy is on the mend Productivity and Compensation CBO assessment with and without the American Recovery and Reinvestment Act (ARRA) – i.e. the “stimulus” Bailout of the Automobile Industry The difference: more austerity in the U.K. No inflation here! Theory: Liquidity trap: there is not enough demand (S > I) when the real interest rate is zero S I r 0 S, I Due to the lack of demand, printing money (Quantitative Easing) has not been inflationary The graph shows that the “natural” real rate of interest (r) consistent with full employment is negative. Since r = i – π and the nominal interest rate cannot be negative, the only way for r to be negative is for expected inflation, π, to rise. QE3 has been designed to increase expectations of inflation to reduce r. Natural real rate of interest U.S.: Swing of private sector into financial surplus necessitated large public deficits to avoid a deeper slump The Job Market The Job Market Employment barely keeps up with population Employment Population Ratio A plunge and a stabilization at a depressed level, which has now gone on for almost three years. Everything else is just noise. August 2012 employment report: 96k gain Monthly average gain of 139,000 this year Private Employment in two administrations Public employment in two administrations Note: the spike in 2010 is the census! Government employment shrank under Obama: If government employment had grown as fast under Obama as it did under Bush, we’d have a million and a half more people employed today! Government employment divided by population: Government employment (think school teachers) does not even keep up with population! The top line is total government employment (federal, state and local) divided by population. The bottom line is federal government employment divided by population Government Expenditures Public Investment as measured by the sum of state, local, and federal nondefense investment: US: Actual government purchases (excluding safety net spending) have been uniquely weak, largely because of budget distress at the state and local level Reagan versus Obama Who are the biggest spenders? The 2012 US election: the role of the economy Elections are decided by swing states (like Ohio) and are largely determined by economic factors; if this is the case, Obama has not lost! If the economy appears to be improving, the incumbent tends to do well even if in absolute terms it’s still pretty bad. Is the stock market telling us something? Overall economic condition Comment classmate 1: What really surprised me, besides the fact that Obama was the second less spender since Nixon-Ford, is that the unemployment rate in Ohio in Obama's presidential period is less by 2% than that of Reagan's at the end of their terms. In Reagan presidency, unemployment rate in Ohio hit 14% !!, while in Obama's, the highest was about 10.8%. I thought that the financial crisis made all aspects of the US economy in its worst condition in decades. I believe that there are people behind the scenes want to direct our thought towards something or someone. Comment Prof: Remember that Reagan came to office in 1980 right after the Iranian hostage crisis which caused the price of oil to increase at a time when the US economy was highly dependent on foreign oil (much more than today). This caused both the economy to suffer high unemployment and high inflation (stagflation). Luckily for Reagan, the hostage crisis got resolved right after he took office and the price of oil fell causing the economy to recover fairly quickly (thanks also to large increases in government spending on the military). In which ways is the situation different today?