United States has been one of the leading economic power houses for several years. However, this came to s drastic stand still after the 2008 global economic recession. It is at this point that the federal government of United States had to put in place vital measures to curb the increasing rates of inflation and unemployment. This was accompanied by increased housing bubble and low level of confidence from consumers and investors which would ultimately lead to low levels of economic development in terms of GDP and per capita income (Economic, 2013).

United States has however recorded slight improvements in the economic front after the recession. Major improvements have been noted in terms of increased employment and a slight rise in GDP. After the global recession of 2008, the united states have enjoyed uninterrupted economic growth with the most notable effect being the falling unemployment rate. However, it is vital to note that the average economic growth has been less than 2.25% and has slowed further in the recent years by 1%. This has resulted in increased concern in the current levels of unemployment. The US government still believes that the current rate of unemployment leaves a lot to be desired.

After the global recession the federal government has put in place fiscal and non-fiscal policies to deal with the thorny issue of unemployment.  Proactive measures were inevitable so as to regulate unemployment, inflation and other macroeconomic situations faced in United States economy. In dealing with the current issues of unemployment in United States, it is also important to note that inflation has a relationship with levels of inflation and thus proactive measures should be taken to ensure that desirable levels of inflation and employment are realized.

Having realized that US is a world super power, poor economic conditions would result to detrimental repercussions to other global economies. One of the most notable undertakings by the government has been printing of more new money for use in the economy.  By so doing, more money will be put in public disposal thus increasing the consumption levels. Increased levels of spending have a positive impact on aggregate demand which translates to increased economic growth (Economic, 2013). This also leads to increased government spending which has positive impacts on levels of unemployment and inflation rates.

The United States government has also strived to ensure that the economic growth of the country is perpetual. Since 2008, the country has registered a constant growth in terms of real GDP which has prevailed at 3%.  Proper measures should be put in place to ensure that such economic growths are sustained. However, the increased unemployment has caused a sluggish economic development in the recent years.

The United States government has also been drastically affected by housing problems. This has a direct relationship with unemployment and inflation. With increase in the levels of income which can only be realized in full employment, the housing problem can be effectively dealt with.  The increasing costs of fuels such as gasoline have also resulted to increased inflation in United States (Economic, 2013). This has also been a major cause for alarm to the federal government. In order to curb this menace, proper legislation such as tax, interest rates, among other non-fiscal policies have been put in place to eradicate the menace. If such macro-economic situations persist in United States, there is great likelihood to a global economic meltdown which could be disastrous to the World economy.

Reference

Sivy, M. (n.d.).Economic Outlook for 2013 | TIME.com. Business & Money | The latest news and commentary on the economy, the markets, and business | TIME.com. Retrieved June 14, 2013, from http://business.time.com/2013/01/16/what-the-current-economic-outlook-means-for-american-families/

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