Major Economic Statistics and the US Economy Essay

Major Economic Statistics and the US Economy - Essay Example Hence, it would be expected to result in a rise in the Gross Domestic Product (GDP). However, when considering the impact on the standard of living the economists have to look at the movement of GDP on a per capita basis. Taking into account the economic factors mentioned above and population growth it is possible to say that the rate of production does not coincide with the rate of population growth. Even if figures show that production activity of the country increases it does not satisfy the increased consumption need (because of population growth). This fact is proved by the poverty statistical data shows the rise in poverty rate from 11.7 % in 2001 to 12.1 % in 2002. The number of poor increased also, by 1.7 million, to 34.6 million poor in 2001. It is possibleto predict that in a competitive US market, reductions in the marginal product of labour will tend to lower the rewards to labour. In other words rapid growth in population leads to a cut in wage rates (Economic Forecast for the United States. 2005). According to the statistical data the U.S. current-account deficit increased $6.7 billion to $195.1 billion in the first quarter of 2005. In the economic system there is a link between the country balance payment and its rate of economic growth. The notion of trade balance can be defined as "the difference between the value of the goods and services that a country exports and the value of the goods and services that it imports" (White House Statistics, 2005). The strong growth of demand has led to a large increase in the trade deficit in goods and services. So, if the US government wants to reduce the trade deficit, then it has to accept that consumer must grow at a slower rate in order to reduce the imbalance between exports... Taking into account the economic factors mentioned above and population growth it is possible to say that the rate of production does not coincide with the rate of population growth. Even if figures show that production activity of the country increases it does not satisfy the increased consumption need (because of population growth). This fact is proved by the poverty statistical data shows the rise in the poverty rate from 11.7 % in 2001 to 12.1 % in 2002. The number of poor increased also, by 1.7 million, to 34.6 million poor in 2001. It is possible to predict that in a competitive US market, reductions in the marginal product of labor will tend to lower the rewards to labor. In other words, rapid growth in population leads to a cut in wage rates.According to the statistical data, the U.S. current-account deficit increased $6.7 billion to $195.1 billion in the first quarter of 2005. In the economic system, there is a link between the country balance payment and its rate of economi c growth. The notion of trade balance can be defined as â€Å"the difference between the value of the goods and services that a country exports and the value of the goods and services that it imports† (White House Statistics, 2005). The strong growth of demand has led to a large increase in the trade deficit in goods and services. So, if the US government wants to reduce the trade deficit, then it has to accept that consumer must grow at a slower rate in order to reduce the imbalance between exports and imports.