The US economy is in good shape
Debate Rounds (3)
First, the U.S. has a great unemployment rate. According to the U.S. Bureau of Labor Statistics, the current unemployment rate, 5.5%, is the lowest it has been since 2008 (Bureau of Labor Statistics 2015)! That is great for economy, as unemployment and commerce greatly effects economy. We need a low unemployment rate for a strong American workforce and a strong American economy! (Website: http://data.bls.gov...)
Also, we should not worry about future inflation. Michael Ivanovitch, a writer for NBC, says,"At the moment, there are no reasons to worry about rising inflation expectations. Unit labor costs in the fourth quarter declined 1.6 percent from the year earlier as a result of strong productivity gains and weak wage increases. For last year as a whole, unit labor costs rose only 0.8 percent" (NBC 2014). Inflation can be devastating for economies. Those are great numbers for the U.S., taking the burden of future inflation off of our shoulders. (Website: http://www.cnbc.com...)
Finally, the U.S. is a leader in economy. We are in the Great 7 (G7), which is the 7 leading countries in economy and industry. According to the Telegraph, the U.S. is the world's most powerful economy, and expected to stay the most powerful for the coming decade (The Telegraph). This proves that our economy is strong within the international community. (Website: http://www.telegraph.co.uk...)
As I may not agree with things our current administration does, the U.S. has a great economy, which is thriving and will continue to. America is a great country with a great economy. America continues to thrive, and will for many years.
The unemployment rate of 5.5% sounds good, but there are a few reasons why it's misleading.
First, the number does not include the millions of people who have not looked for work even though they are able to and/or want to, if they haven't searched for a job in the past four weeks. (http://useconomy.about.com...) This is manifest in our current labor force participation rate of 62.9% (http://data.bls.gov..., as of May, 2015) This means that more than 1/3 of people currently able to work are not working!
Included in the 62.9% of people in the labor force that are currently employed, many are only part-time workers, and many are low-wage.
The US actually is a leading country in low wage jobs, in the United States, according to the OECD, 25.3 percent of workers had "low-pay""earning less than two-thirds of the median wage.
Part time workers currently make up about 15% of workers in the US (EPI analysis of Bureau of Labor Statistics' Current Population Survey public data series)
Additionally, the current trend in job availability verses job seekers is indicative of rough times now and in the future for job-seeking graduates. "An average of 150,000 new grads enter the workforce per month, creating far more highly-qualified job seekers than there are high-paying jobs." (http://www.businessinsider.com...) In fact, six of the fastest growing jobs in the US right now, are low-paying. (http://www.huffingtonpost.com...)
Also close to half of Americans (Census Bureau) receive government assistance in some form. There are also about 46 million people households receiving food stamps from the SNAP program. That means one sixth of people in our country are requesting help just to buy food.
Our current GDP growth percentage is about zero and has been negative for the past few years.(http://www.tradingeconomics.com...)
Median Household Incomes.
2013 is the latest year in which Median Household Income is available. It was $51,900 in 2013, (Census Bureau) That's 8 percent lower than in 2007, before the recession began.
According to the Telegraph, the U.S. is the world's most powerful economy, and expected to stay that way. That is their opinion but it is odd how they come to that conclusion when other countries' GDP growth have been outpacing ours for a few years. In fact, Afghanistan's average GDP growth has been higher than ours over the past five years. (http://data.worldbank.org...) Indeed, if you read the comments on the Telegraph article you linked, most readers share my skepticism in America's positive economic outlook.
"According to a national survey, 70% of Americans believe the U.S. economy is permanently damaged, while 84% do not believe the economy has improved since the recession ended in 2009."
To sum up what I think our current economic situation is, I'll use a quote from a stock market, financial, and economic analysis site.
"The U.S. Economic Outlook for 2015 will be significantly different depending on your vantage point. If you"re wealthy, 2015 will probably be another year of celebratory wealth creation.
If, on the other hand, you"re not, 2015 will feel an awful lot like 2014, 2013, 2012, 2011, 2010, and 2009. Wall Street and the U.S. government will tell you the economy is doing well, but it won"t feel like it."
(1) "Low Wage"
You say many are "low wage", which there are many Americans who run on minimum wage, which stands at $7.25 an hour. But low wage is pretty irrelevant. If you want to say we need to raise that low, minimum wage to help our economy, I'll tell you that raising it will cause HUGE problems in our economy.
Raising that "low wage", which many Americans are lucky to get other than not having a job, will raise the unemployment rate! Seems crazy, right? Here's the reasoning. For a minute, you have to think about the owners paying the employees more. You think 5.5 is bad? When business owners have to pay more, they might go in debt for paying more an hour. President Barack Obama wants the wage changed to $10.10 an hour (https://www.whitehouse.gov...). Think about it: That is a $2.85 increase an hour from $7.25. That can really add up depending on the number of employees and the hours worked. A graph in a political article showed that with a state's minimum wage at $7.25, that state would have an average unemployment rate at 6.4%. Then, states with a minimum wage over $7.25 showed to have an average unemployment rate of 7.4%. Simply raising the minimum wage can increase a state's average unemployment rate by 1% (Gitis 2014: .) So raising the wage, which many can say will help the economy, will raise the unemployment rate, which you say is bad enough now.
Also, businesses can just shut down. A business owner said that she has to fear of being shut down because of the raising wages (www.nytimes.com/2014/02/06/business/smallbusiness/as-minimum-wages-rise-businesses-grapple-with-the-consequences.html>.) Commerce is big to our economy, and could be shut down.
So the "low wages" are actually good, and should be good for the people who are employed compared to the 5.5% who aren't.
Yes, many incomes are lower in America, which can bring more poverty, but reasons why incomes are lower can be a few problems.
One is the minimum wage, which we discussed earlier, which is actually good for our economy. Think about it: Higher minimum wage, more money for businesses to pay, employees are fired, unemployment goes up, incomes are lower because they don't have a job!
Second, many people don't have a job, but this isn't the economy's fault. It is actually, mainly, the persons fault! According to the U.S. Coast Guard, reasons people don't have jobs is because they don't search for jobs, don't trust small businesses, don't have certain skills, etc. (https://www.uscg.mil....) Maybe the reason for these low incomes isn't only the recession, but the lack of people getting jobs themselves.
(3) Final Notes
Yes, you may say the government is feeding us the news of a growing economy, but look at other nations! The BBC, a big broadcasting group in the UK, says we are "Growing at quickest pace for 11 years." (http://www.bbc.com...) When other countries say we are doing well, that is saying something. It isn't OUR government speaking there, it is the government of another country!
This has been a good debate, with good points on your side. I'm g;ad to have accepted it.
The coast guard's reasons might be accurate for some, but I think the number one reason why people don't have jobs is because jobs are not available. Many people have the lost their jobs and can not get trained for a new one.
I appreciate that you accepted this debate. Thank you! You also made some good points.
America has made a lot of jobs. According to CNN, America has made over 1,000,000 jobs in 2015 alone. And 280,000 jobs in May 2015 (http://money.cnn.com...).Yes, I do not agree with most of what our current administration does and usually look at opposite ends of what our President does, but I must say that this job growth is impressive.
I am glad I accepted this debate! You too had very excellent points. Thank you for giving me a good debate!
1 votes has been placed for this debate.
Vote Placed by imabench 1 year ago
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Reasons for voting decision: It was never defined what the US economy is being compared to, and pro let this one slip away. Rather than point out how the US economy is doing fantastic compared to Greece, Italy, Spain, etc, he let Con steer the debate into comparing the US economy to what it was in the past, where con beat Pro with arguments about lagging wages, the number of people on government assistance, etc. Points to con for arguments, but this one could have easily gone the other way
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