Will US tax bill prevent US Economy to Make a Nosedive? A Quick Preview
Is US Economy Making Faster Nosedive? A Quick Preview
Is America worried about the upcoming recession? Economists and various stat reports predict that upward trend seems to deplete. The downward in economy starts coming closure to doorsteps of American citizens. Recession can take place even during productive days due to lack of risk management to prevent the financial downturn. Donald Trump is a new president of US with bundles of futuristic plans to reset the economy. To be frank, more rework and productive plans are needed to remove the side effect of recession to make America powerful.
America Has Historic Recession
America has the history of economic recession. During Gulf war, this advanced country with the largest economy must hold a glass reflector to cross check credit crunch history. The battle is not less expensive. American administration had to spend billion dollars to upgrade nuke systems to hurl back for controlling terrorists and rebels. This rich country had to switch off the overseas trading with OPEC nations during the most pressing time. So, the recession is hankering after US administration. Economic crashing in America started on 1st October in 2017. The Market index clarified that the dashboard showcased the nosedive in the index since 2013. Similarly, ISM’s downtime began with the 50.2 percent index which is the lowest rate comparatively.
Crunch in US Economy Starts
US manufacturing industry lost profits due to the shortage of sufficient financial aids to reinforce the backbone of the industry to expecting excellent credit returns. The causes of disorders in the growth of manufacturing units are loss of goodwill in global market, demand for US goods is decelerating and rising prices of dollars. Obviously, there must be effective resistant band to insulate US economy to fight with extreme recession. Another survey was conducted in Philadelphia. It was debacle in a word. The scenario is not acceptable to economists. In short, the growth rate dropped down to touch -6 with higher ambition to make it 5.9. This cumbersome crush is definitely symptom of pecuniary downturn. Simultaneously, Empire State Manufacturing has had a record breaking negative index with -14.7 in last September. Dallas Fed survey registered -9.7 indexes. So, these growth oriented industries had to minimize the number of workers to overtake the sudden blitz Krieg invasion. Analysts and economists opine that US should have better preventive care to wipe out causes of financial nemesis. This downfall must make the manufacturing sectors helpless and defunct in the long run. The speedy hike in energy prices in global market, the low strength to compete with rivals and lack of interest from other countries to choose US products must be detrimental to invoke the coming of economic downward.
Recession Prevents US Growth
Ian Shepherdson of Pantheon Macroeconomics has data to provide. The prominent lacunae between products importing and exporting widens gradually with the gap of$48.3 billion. Earlier, it hovered around $41.2 billion. So, US traders have to have nightmarish experience at the time of creating their financial budgets. The rebound of recession is on its way to destruct US in upcoming years. On the other hand, more job cuts are visible to reset the budgets. When recession hit US, jobs for competent workers and qualitative employees went ground level to hang with dull 62.4 percent. This reading disheartened workers’ federation. They started protesting and blocking roads with their demand for having job security. The participation of laymen and skilled labor is certainly painful as employees have to work on low wages. They have to work harder without emoluments. The recession can’t illuminate their home.
Stock Market Waning –Downtime Starts
The improvement in the stock market is waning. S&P 500 organizations will have rainy days which will last longer. Signs of fragile growth in stock market will smash US government. It will struggle for own safety. The constant problem in labor market and the poor results in manufacturing, housing and automobile sectors must inhibit the process of development in transforming US economy. 0.6 percent decline in profit margin is not hygienic to US economy. It needs more detoxified components to remove free radicals to refurbish the US economic infrastructure. At the same time, the position of high yield bonds in US is not comfortable. Money lenders are not willing to have more risks to provide financial support to companies which have junk bonds to sell. They have to bear higher yields in the forms of interest rates or dividends which are more than investment grade percentage. Recession will force these companies to stop offering long term loans with higher yields to help small size companies to head for profits generating.
White House Denies Double Tone Recession in US
White House can’t believe that US economy is in dip layer recession with long lasting effect on citizens. There is no confirmation of possible financial disaster. However, Treasury Secretary, Paulson, is little bit worried about the condition of job market. Employees are not entertained by government offices and private sectors with enthusiasm. Jobs cuts are higher to endanger skilled workers. They prefer cross border trips to settle in ME and other countries in Europe. Price hike in energy and loss of interest of global customers to buy US products are making deep lacunae. Jay Carney, spokesperson to represent White House admits the downfall in the economic growth surprisingly. The recession will damage the reputation of US if it is not controllable. Debt management theories need to be changed or innovated to resist the economic downturn. Besides, US has new trouble with North Korea and Venezuela. New petro-euro currencies in Iraq which are not designed yet must put another obstacle. Venezuela and OPEC nations want the currency replacement to deal with West. Value of crypto currencies is cross checked by Venezuela to use gold and diamond. US economy will have to fight and struggle because of the possible introduction of crypto currencies. Donald Trump has not accepted the proposal of Venezuela to pay in new crypto currencies. The shale oil industry in US is not disturbing OPEC nations due to the investment of more dollars to make the oil fields in ME fertilized to produce oil. Iraq has decided to add 1 million more oil barrels to outperform America’s Shale oil. So, it is crisis for US to handle.
US economy has received 47 recessions in total. After 7 years’ gap, the economic downtime becomes palpable. Though America discovers shell oil industry to cope with OPEC nations, the overseas trading with other countries is interrupted. Donald Trump’s historic visits to Asia for business deals, innovation in the economic growth and peaceful negotiation with China will not be nootropic supplements for Donald Trump to gather energy to suppress recession. He needs to revitalize manufacturing industry once again. His diplomatic relationship with Islamic countries must be smooth. War can’t be flawless way to find better routes for economic development. He must have more sophisticated economy remodeling theories to boost up the economy eventually.