Five Modern Problems of the US Economy
The American people are facing the following problems today: Inflation.
This is one of the most important modern economic problems because of the way it impacts people s quality of life.
High inflation means that they can buy less with their money.
At the same time, however, inflation is also a sign that the economy is growing, while deflation (when prices are going down) can also be a negative indicator that the economy is weakening.
Economic inequality.
Studies have shown that income inequality in the US is worse now than it was even back in 1774, before the Revolutionary War.
In 1774 the richest 1% of Americans accounted for 7% of the country s income; by 2010, they laid claim to twenty percent.
But economists remain split about the best way to bridge the inequality gap as well as its effects on the middle class.
The immigration debate.
The overall consensus is that immigration is good for American since immigrants are more likely to start businesses and be more highly skilled.
However, there are others who believe that immigrants directly compete for jobs in a tight labor market with native workers.
And there is also the question of illegal immigration, which many economists believe will lower wages as they compete with American low-wage earners for scarce jobs.
The minimum wage.
It has been three years since the federal minimum wage was raised but in the interim, prices of basic goods and services have risen substantially.
Thus, a person only earning minimum wage not only does not have enough income to maintain a decent standard of living, they actually fall below the federal poverty limit.
Is it time to increase the minimum wage? But how would this policy affect the employment rate? Would it actually drive more people into poverty? The health care system.
Although the US is one of the wealthiest countries in the world, access to health care remains extremely unreliable despite recent attempts to reform the system.
A recent report revealed that the percentage of people who were unable to obtain health care because of high costs increased to 13.
7% in 2010 from 8.
8% a decade earlier, while close to 2010 of adult Americans hadn't been able to see a doctor in the past year.
In addition, more than 20% of adults had a medical need that went unmet in 2010.
How can the health system be reformed to ensure greater access to health care? Reading free download books can help you learn more about the issues involved so that you can participate intelligently in the debate.
This is one of the most important modern economic problems because of the way it impacts people s quality of life.
High inflation means that they can buy less with their money.
At the same time, however, inflation is also a sign that the economy is growing, while deflation (when prices are going down) can also be a negative indicator that the economy is weakening.
Economic inequality.
Studies have shown that income inequality in the US is worse now than it was even back in 1774, before the Revolutionary War.
In 1774 the richest 1% of Americans accounted for 7% of the country s income; by 2010, they laid claim to twenty percent.
But economists remain split about the best way to bridge the inequality gap as well as its effects on the middle class.
The immigration debate.
The overall consensus is that immigration is good for American since immigrants are more likely to start businesses and be more highly skilled.
However, there are others who believe that immigrants directly compete for jobs in a tight labor market with native workers.
And there is also the question of illegal immigration, which many economists believe will lower wages as they compete with American low-wage earners for scarce jobs.
The minimum wage.
It has been three years since the federal minimum wage was raised but in the interim, prices of basic goods and services have risen substantially.
Thus, a person only earning minimum wage not only does not have enough income to maintain a decent standard of living, they actually fall below the federal poverty limit.
Is it time to increase the minimum wage? But how would this policy affect the employment rate? Would it actually drive more people into poverty? The health care system.
Although the US is one of the wealthiest countries in the world, access to health care remains extremely unreliable despite recent attempts to reform the system.
A recent report revealed that the percentage of people who were unable to obtain health care because of high costs increased to 13.
7% in 2010 from 8.
8% a decade earlier, while close to 2010 of adult Americans hadn't been able to see a doctor in the past year.
In addition, more than 20% of adults had a medical need that went unmet in 2010.
How can the health system be reformed to ensure greater access to health care? Reading free download books can help you learn more about the issues involved so that you can participate intelligently in the debate.
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