Trade Policies for the Current Economic Crisis

Trade Policies for the Current Economic Crisis

The current economic state of the United States is quite alarming because of the recession that surprised most of the economists and politicians. The recession being experienced within the United States greatly affects the economic activities within the country, as well as the countries that are dependent on the American economy, which is one of the largest economies in the world.

WRITE THIS ESSAY FOR ME

Tell us about your assignment and we will find the best writer for your paper.

Get Help Now!

The American recession largely affects the businesses around the world because a large part of the world economy is contributed by American investments. It is speculated that there will be a global recession that will happen probably next year. The International Monetary Fund (IMF) also speculated the same theory in the next twelve months wherein the economies of the other countries will be greatly affected (Stewart).

Countries that are largely dependent on the United States will suffer the most as they are also affected by the crisis on the major economic activities of U.S. This can be prevented if major economic reforms are put into motion in order to save the economy of America. One of the actions taken is the U.S. bailout program. More of this programs and policies are needed to uplift the economy and sustain its stability.

There is the urgent need to adjust the basic economic and trade policies to help relieve the effects of global economic crisis. The implemented policies by the government is unable to sustain economic growth and stability. The current global economic crisis is calling for the sound decision of the law makers to maintain control over the economy (Das).The severity of the problem caused by the global economic crisis is unquestionable and requires immediate action to prevent further loss and damage. It already cause severe damages in many economies worldwide. In the United States alone, unemployment is one of the major problems as the country already lost 3.6 million jobs.

The American economy is largely dependent on its consumers, who serve as the main engine in running the economy. With the fiscal crisis lurking behind, there occurs consumer retrenchment that drives the consumers to spend less than usual (Lindsey). The government should encourage the people to spend and let money circulate and run the economy. It is also important to prevent job losses and to balance employment for the people to earn money and maintain their purchasing power.

In the United States, a surprisingly US$30 trillion was also lost due to the global economic crisis. Moreover, the current economic crisis coincides with another major global dilemma which pertains to the environment. The severe climate change is also one of the major concerns of the economists and politicians for it has major social and political implications. The irreversible climate change, scarcity in food supply and other resources as well as the declining diversity is significantly connected to the existing economic system. It hinders the level of our growth in terms of economic and environmental aspects.

We must live according to the economic limits that is only adequate for normal consumption. Our attempt to win over the economic imbalances posed greater challenges as half of the economies worldwide heavily relied on the American economy. The United States must significantly decrease its consumption, increase its savings, reduce its debts and it needs to export more and import less (Das). Most impor………………………