A Healthier American Economy? But Her Policies In The Middle East Seem To Have Indirect Control Over
Since the financial crisis began in the middle of 2008, the highest figure for Dow Jones Industrial Average has been set at 13,000. Available information shows that the American economy is becoming healthier. The number of those who claimed to be unemployed, seems to have gone down. Housing starts have gone up. President Obama would most probably be happy because any improvement in economic growth will certainly increase his chances of getting re-elected. Although the unemployment figures are appreciably high, they are still falling and experts say that unemployment is not a vital tool to use in determining whether the incumbent President will be re-elected.
It is the capita GDP, i.e. an average person's increment in income that is used as a yardstick for stating that an economy is getting better. The economy may not be in the best shape, but it is certainly better than how it was about 8 months ago or less. It is unlikely that the economic crisis plaguing America would retard the growth of her economy more than the way it did some months back. Mario Draghi and the European Central bank said that even if recession occurs in europe, it wouldn't have any significant effect on the growth of the American economy.
Derek Thompson of the Atlantic points, forsees a situation whereby new debt renewal might take place before the elections and lead to another drama between the President and the Republicans. This is highly probable because there is currently a slowdown related to the fact that oil prices are going up. It is well known that for several months, oil prices had been going up. Oil prices are at $105 per barrel and a pump price over $3.50. It is so shocking to witness how oil prices increase faster and higher. In 2007, oil was put at $50 a barrel. Though there are weaker demands for it from India, Europe, America and China, the prices are still too high. A major contributor to these high prices is the political turmoil in the Middle East.
The politics around Iran seems to be leading these high prices. Obama and the American economy also seem to be at a disadvantage because of the manner in which he has handled foreign policy. Apart from positively manipulating the politics in the Middle East, there is no other way to easily reduce oil prices today! Drilling more oil, or raising efficiency, won't have much impact on the short run. As it stands now, the Middle east geopolitics that basically involves Iran, Israel and America, is the major determinant of the future of the American economy, and the outcome of American Presidential election as well.
For your interest, read other articles written by the author:
http://expertscolumn.com/users/terihagh
It is the capita GDP, i.e. an average person's increment in income that is used as a yardstick for stating that an economy is getting better. The economy may not be in the best shape, but it is certainly better than how it was about 8 months ago or less. It is unlikely that the economic crisis plaguing America would retard the growth of her economy more than the way it did some months back. Mario Draghi and the European Central bank said that even if recession occurs in europe, it wouldn't have any significant effect on the growth of the American economy.
Derek Thompson of the Atlantic points, forsees a situation whereby new debt renewal might take place before the elections and lead to another drama between the President and the Republicans. This is highly probable because there is currently a slowdown related to the fact that oil prices are going up. It is well known that for several months, oil prices had been going up. Oil prices are at $105 per barrel and a pump price over $3.50. It is so shocking to witness how oil prices increase faster and higher. In 2007, oil was put at $50 a barrel. Though there are weaker demands for it from India, Europe, America and China, the prices are still too high. A major contributor to these high prices is the political turmoil in the Middle East.
The politics around Iran seems to be leading these high prices. Obama and the American economy also seem to be at a disadvantage because of the manner in which he has handled foreign policy. Apart from positively manipulating the politics in the Middle East, there is no other way to easily reduce oil prices today! Drilling more oil, or raising efficiency, won't have much impact on the short run. As it stands now, the Middle east geopolitics that basically involves Iran, Israel and America, is the major determinant of the future of the American economy, and the outcome of American Presidential election as well.
For your interest, read other articles written by the author:
http://expertscolumn.com/users/terihagh
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