Economic Experiences Essay Example | Topics and Well Written Essays - 2500 words

Economic Experiences - Essay Example The US has had its moments of ups and downs in its economic experiences. Asia, Africa, and Latin America have had their seasons too. Some economic experiences that happened in some of the Asian countries in the 90's are being repeated in the US and Africa. In the same Vein, some popular and unpopular American economic viewpoints are also replicated in other countries worldwide (Columbus & Wusu, 2006). For beginners, the United States economy is the most important national economy in the whole world today. By the end of 2007, its gross domestic product (GDP) was approximated to be over $13.8 trillion. The European settlements in the 17th and 18th centuries form the basis of the United States economy. America had many colonies which evolved from insignificant majestic economies to a miniature, autonomous farming economy. In 1776, these colonies became what is today known as the United States of America (The U.S. Economy, 2007). From its inception, the United States developed into a gigantic, amalgamated, and industrialized nation which today comprises over a quarter of the total global economy. The huge growth has been necessitated by among other factors, endowment of enormous natural resources including coal, oil, and timber, possession of huge area of highly prolific farming lands, a large united market, a good entrepreneurial spirit, and a obligation of devoting in human and material capital (The U.S. Economy, 2007). The United States economy has its own advantages and limitations when compared to other economic experiences witnessed around the world, especially in Asia, Africa, and Latin America. Following the great depression of the 1930's, the economy experienced hard-hitting recessions. Periods of high unemployment and slow economic growth rate were recorded in United States economy (Lee, 2002). When government officials realized the dangers posed by the recession, they responded by reducing taxes to enable consumers to spend more. The government also facilitated a swift growth in the money supply thus encouraging more spending. This offered a remedy to the woes facing the economy at that time. The economy continued to grow steadily until 1970's, when inflation fears were acknowledged mainly due to the economic anguishes brought about by major price increases and the Vietnam conflict. Instead of fighting recession that was threatening to destroy the gains made on the economy, government officials made efforts to control inflation by opposing tax cuts, curtailing growth in the money supply, and limiting spending (The U.S. Economy, 2007). Fiscal policy was widely used by the government to control and stabilize the economy in much of the 1960's. Government officials, including the president and members of the United States Congress manipulated state revenues to influence the economy. High unemployment, huge state deficits, and acute inflation levels witnessed during this period weakened the public's confidence in fiscal policy as a mechanism for controlling the