The international financial system is presently experiencing one of the largely difficult situations that it has to face when it comes to fiscal heftiness. Last year, a worldwide financial catastrophe was felt around in the global market, which has resulted to the liquidation of some of the world's prevalent companies as well as complications for some of the economic organizations around the globe. Various states have already felt the effects of this universal economic calamity and the United States of America is no exception. Regardless of the reality that the United States is renowned as among the developed states in the globe and has been one of the nations that is regarded to have a vigorous financial system, it is still one of the countries that are presently experiencing the difficulties of this monetary crisis. This fiscal predicament is not only distressing huge corporations but it is also putting the lives of many American people in an unfavourable situation. The existing economic state of the United States of America is the subject of main reporters in the country as well as in other parts of the sphere.
The newspapers stated that at the centre of economics is the study of human deeds in producing, distributing and consuming substance goods and services in a world of limited resources. The author feels that the United States ought to face the present financial situation with an eye to the shortage of resources it possesses and the actuality that no judgment occurs without a constituent price. The author underscores the reality that current ordinary economic indicators, which do not entirely obey the course book description of stasis, boom or decline, only exacerbates the intelligence of indecision around how to supervise this current state of affairs (Florida 1-4).
The United States' financial system is basically the foundation of our contemporary society. The United States economy has witnessed spectacular changes as it grew from being an uncomplicated economy, to become the world's most dominant country. Even though the United States has got the most prevalent economy in terms of financial plan and overheads in the entire world, solemn economic inconveniences have come up. At the moment, for instance, the poverty rate is remarkably high, the least amount of earnings is not sufficient in nourishing a family, and there is also partiality and discrimination all over the employment margin. In addition, numerous businesses are reluctant to allow workers to form unions. All of these exertions over after a specified period of time have sparked contentious and solemn debates associated with economic changes (Knoop 166).
The United States is currently in the grips of an economic situation that defies customary, conventional suppositions of recession and boom. The stock market is on shaky ground, having weathered one of the most crushing crashes over the past two years in recent memory, as well as a constant state of economic uncertainty in its technological sector. The market swings up for several weeks then back down again. Consumer confidence is down, even though the unemployment rate is above recession levels. Retirement funds are in jeopardy, yet the economy itself does not seem to be contracting. The United States government is facing a budgetary crisis, yet it also must budget for war. It wishes to lower income taxes to stimulate the economy, yet not face an overwhelming deficit (167).
As formerly mentioned, the low minimum wage and poverty are a big crisis to the economy. The rate of poverty has stayed put since the 1960's. At the moment, an approximate 32.2 million Americans subsist below the poverty line. These individuals are also not receiving adequate funds assist in sustaining their families. This does not unswervingly bind into the least wage, but they are equally related even when the working poor cannot be able to provide for themselves. Today, several Americans are struggling to remain economically stable. Conversely, for the less well-off, the least amount of wage is hardly enough money to make ends meet. Poor people who go to work full time are not even making enough to propel them above the poverty line (Zuckerman, 23).
The present economic crisis is improbable to result in the similar kind of collective knowledge. To be certain, the economic reduction is causing pain just about everywhere. In October, in less than a month soon after the financial crisis began, Moody's Economy.com published an evaluation of current economic activity within 381 U.S. metropolitan areas and of all the metropolitans, 64 had been affected while only 15 was still expanding. Noteworthy among them are Texas and Oklahoma, the oil- and natural-resource-rich regions.
According to Zuckerman, not even a single place in the U.S. is expected to break out of the deep and long depression. However, as the crisis prolongs to extend outward from New York, through industrialized centres like Detroit, towards the Sun Belt, it will unquestionably settle much more profoundly on some places than on others. Some cities and regions will ultimately bounce back stronger than before while others may by no means come back at all. As the crisis worsens, it will profoundly and permanently change the country's economic setting. It is probable that the United States will go into a phase of speeding up relative decline in future, although that's scarcely a foregone ending. What's more definite is that the recession, predominantly if it turns out to be as deep and long as several now fear, will speed up the fall and raise of precise places in the U.S.as well as repeal the fortunes of other regions and cities (24).
The safety of the United States is strongly attached to the international economy. Presently, the United States has no rivals on the global market in terms of economic and military power. The mounting number of international corporations and promotions across boundaries add to the increased influence and power of the economically-developed countries. Nevertheless, the international economy is not all-encompassing with many poor nations debarred from participation. Whereas the United States and other developed nations profit from the global economy, the disqualified states comprise of security threat. Aggravation, scarcity, and conflict add to the deterioration of the global economy as well as safety. The military and economic leadership of the United States is not welcome by several states. Therefore, the United States has to reassess the foreign relations policies and economic and in order to uphold global leadership (Bivens 2).
In this intellect, the monetary predicament may eventually facilitate New York by reenergizing its inventive wealth. The bizarre revenue gains of savings bankers, traders, and hedge-fund managers over the past two decades twisted the city's financial system in some detrimental behaviour. In 2005, a top-ranking administrator at a chief savings bank was asked whether the city's intensifying real-estate prices were disturbing his company's aptitude to draw international capacity. He responded basically: "We are the reason, not the result, of the real-estate simmer." (As it seems, he was only partly precise.) Stratospheric property prices have made New York less miscellaneous over time, and questionably less motivating. The effects of increasing real-estate prices on originality point out to the fact that, when a place gets dreary, even the affluent individuals depart. With the domination of the venture bankers over, New York currently stands an improved likelihood of avoiding that germ-free fate.