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order_97314_245348.docRunning head: ECONOMICS 1
ECONOMICS 6
Economics
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Introduction
The economy of a nation has an effect on the inflation rates as well as the unemployment. For the last ten years, the nation has been experiencing an unstable inflation rate but the unemployment rate has been increasing. Some of the factors that have contributed are the increased population and the innovations of machines that have left organizations with a lesser need of the human resource. There are different ways in which the government can make sure that the inflation rate and unemployment rate are reduced. The concentration on the human capital as well as investing in technology are two significant ways that the country can make sure that inflation and unemployment issues are addressed.
GDP, Inflation, and Unemployment (2005-2015)
The GDP of the country increased from the year 2005 to 2015 by a significant percentage. In 2005, the GDP stood at $14, 234.2 billion and in 2015; the GDP was $16,471.5 billion (The Statistics Portal, 2017). Looking at the statistics provided, it is evident that there was an increase of more than $2.2 billion in the period of the ten years. When it comes to the case of unemployment, the nation has been affected negatively. The reason behind it is because instead of unemployment rate reducing, it is still increasing and that has an effect on the economy of the nation. During the last quarter of 2005, the unemployment rate was at 4.5% (National Conference of State Legislatures, 2017). In 2015 the unemployment rate had increased by 0.5 because it was at 5.0%. When it comes to the aspect of inflation, in 2005, the inflation rate was at 3.42%, and in 2015 the inflation rate was 3.42% World (Wide Inflation Data, 2017). Looking at the statistics, it is evident that the inflation rate did not change for ten years.
Recommendations
In the next ten years, the government should work on two different things; human capital and technology.
a) Human capital
Skills play a significant role when it comes to boosting the economy. In the next ten years, the government should concentrate on making sure that people are skilled to become more productive and financially independent. Skills promote innovations and innovations increase the revenue of the nation. The citizens should be trained in how to use the new technology to empower themselves financially (Wide Inflation Data, 2017). Doing so will reduce the rate of unemployment significantly.
b) Technology
The world is transforming technologically, and therefore it is important for the government to invest in technology. Investing in technology in the next ten years will have different effects on the citizens of the country. The first effect is associated with inventions and innovations. Most of the innovations that are made in the modern day are associated with technology. Therefore, it means that if the technology is prioritized, the rate of unemployment is likely to reduce. When the rate of unemployment is low, the government collects more taxes. The revenues of the government increase when the purchasing power of the citizens is boosted (National Conference of State Legislatures, 2017).
Unemployment rate (%) (2005-2015)
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Inflation Rate (%) (2005-2015)
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200520072009201120132015
References
National Conference of State Legislatures. (2017). National Unemployment Rate at 3.8 Percent through May 2018. Retrieved from http://www.ncsl.org/research/labor-and employment/national-employment-monthly-update.aspx
The Statistics Portal. (2017). Real Gross Domestic Product (GDP) of the United States of America from 1990 to 2017 in billion chained (2009) U.S. dollars. Retrieved from https://www.statista.com/statistics/188141/annual-real-gdp-of-the-united-states-since 1990-in-chained-us-dollars/
World Wide Inflation Data. (2017). Historic inflation United States - CPI inflation. Retrieved from http://www.inflation.eu/inflation-rates/united-states/historic-inflation/cpi-inflation united-states.aspx
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200520072009201120132015
