Economy Reaches Longest Expansion In U.S History In Third Quarter Of 2019

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Economy reaches the longest expansion in U.S. history

The American economy experienced an unprecedented expansion during the years 1991 to 2001. The third quarter of 2019 marked this expansion as the longest in the history of the United States, and the latest release of Gross Domestic Product has confirmed this. One of the major driving factors behind this unparalleled expansion is the policy framework set forth by Trump's administration, which has also paved the way for higher income levels of many American families. The executive council of economic advisors had initially predicted that under the new democratically elected administration, the first two to three years would experience growth in GDP rate, which would be approximately 2.1 annually. Surpassing these expectations, the U.S. GDP rate has persistently maintained its growth at a sturdy 2.6 percent, which is shockingly higher than the expectations of the budget office, which is under the hold of Congress. If we compare the GDP in the era democrats and republicans, the estimated GDP growth would be a 2.1 % annual rate in the first 11 quarters of the new government. In Trump's administration, the GDP growth of the third quarter rose to 2.6 percent, which is very high as compared to the expected growth.

The wide and diverse consumer base of the economy can be largely accredited to the increase in overall income and expenditures, which primarily drive the economy. Consumer side indicators, for instance, personal disposable income and real spending by the consumers, also demonstrated unparalleled increase ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"wbrow3wM","properties":{"formattedCitation":"(\\uc0\\u8220{}Economy Reaches Longest Expansion in U.S. History in Third Quarter of 2019, Beats Market Expectations\\uc0\\u8221{})","plainCitation":"(“Economy Reaches Longest Expansion in U.S. History in Third Quarter of 2019, Beats Market Expectations”)","noteIndex":0},"citationItems":[{"id":127,"uris":["http://zotero.org/users/local/R3lWGnc9/items/VHNLX34H"],"uri":["http://zotero.org/users/local/R3lWGnc9/items/VHNLX34H"],"itemData":{"id":127,"type":"webpage","title":"Economy Reaches Longest Expansion in U.S. History in Third Quarter of 2019, Beats Market Expectations","container-title":"The White House","abstract":"The current economic expansion, which began roughly a decade ago, became the longest in U.S. history on July 1, 2019, beating the previous record that lasted from March 1991 through March 2001. As today’s advance Gross Domestic Product (GDP) release confirms, economic growth continued in the third quarter of 2019, beating market expectations and adding …","URL":"https://www.whitehouse.gov/articles/economy-reaches-longest-expansion-in-u-s-history-in-third-quarter-of-2019-beats-market-expectations/","language":"en-US","issued":{"date-parts":[["2019",10,30]]},"accessed":{"date-parts":[["2019",12,17]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Economy Reaches Longest Expansion in U.S. History in Third Quarter of 2019, Beats Market Expectations”). In the third quarter of 2019, both disposable income and consumer spending grew by a substantial 2.9 percent, which has not been experienced by the American economy in a long time.

Low-interest rates, the historic decline in the rates of unemployment, and growth in job opportunities have spurred this expansion since June 2009. During the recession of 2007-08, approximately 9 million jobs were lost, and this unmatched expansion recovered that loss by creating a surplus of 21.5 million jobs. Another source reported that among those workers who were normally belonging to the lowest income bracket, there had been the healthiest wage increase, which visibly narrowed the income gap between high paid earners and low paid earners. Bank account balances, excluding the credit card debt and the mortgages, stock portfolios, and home values that constitute the overall house wealth, also revealed a spike of approximate 82 percent in the last ten years.

America and China are also engaged in a bitter trade war in which both the economies have imposed new tariffs and also threaten to intensify the existing tariffs ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"OaxmfvFw","properties":{"formattedCitation":"(Liu and Woo)","plainCitation":"(Liu and Woo)","noteIndex":0},"citationItems":[{"id":124,"uris":["http://zotero.org/users/local/R3lWGnc9/items/5WKJBQ2X"],"uri":["http://zotero.org/users/local/R3lWGnc9/items/5WKJBQ2X"],"itemData":{"id":124,"type":"article-journal","title":"Understanding the US-China trade war","container-title":"China Economic Journal","page":"319–340","volume":"11","issue":"3","source":"Google Scholar","author":[{"family":"Liu","given":"Tao"},{"family":"Woo","given":"Wing Thye"}],"issued":{"date-parts":[["2018"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Liu and Woo). Although this war has hurtful impacts for American businesses and the global economy in general, the fact still remains that any signs of recession are not foreseeable in the near future. The effects of this trade are being relegated to a minimal status by the increasingly high consumer spending and retail sales. The GDP curve is also trending upwards, signaling that the recession is most unlikely in the years to follow. One of the major macroeconomic indicators, unemployment, has also seen an incomparable decline in its rate, thereby furthering the economic expansion ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"YXg3Ye0S","properties":{"formattedCitation":"(Moore)","plainCitation":"(Moore)","noteIndex":0},"citationItems":[{"id":129,"uris":["http://zotero.org/users/local/R3lWGnc9/items/3MIQFLHE"],"uri":["http://zotero.org/users/local/R3lWGnc9/items/3MIQFLHE"],"itemData":{"id":129,"type":"post-weblog","title":"US economy marks longest expansion in American history","container-title":"New York Post","abstract":"The US economy has grown for 121 consecutive months following the Great Recession, marking the longest economic expansion in American history. The economy has been on a growth spurt since June 2009…","URL":"https://nypost.com/2019/07/01/us-economy-marks-longest-expansion-in-american-history/","language":"en","author":[{"family":"Moore","given":"Mark"}],"issued":{"date-parts":[["2019",7,1]]},"accessed":{"date-parts":[["2019",12,17]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Moore). From October 2009 to May 2019, the rate of unemployment has significantly plummeted from 10 percent to 3.5 percent. In sheer contrast to the previous expansions, inflation, which is the general price increase in all the goods and services of the economy, also remained well below the target inflation rate envisioned by the Federal Reserve. Since the Great Recession, the stock market index has also augmented manifold ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"xXGuq9K1","properties":{"formattedCitation":"(Akram)","plainCitation":"(Akram)","noteIndex":0},"citationItems":[{"id":131,"uris":["http://zotero.org/users/local/R3lWGnc9/items/M9R9KLM8"],"uri":["http://zotero.org/users/local/R3lWGnc9/items/M9R9KLM8"],"itemData":{"id":131,"type":"article-journal","title":"Monetary Tightening, Financial Markets, and the US Economy","source":"Google Scholar","author":[{"family":"Akram","given":"Tanweer"}],"issued":{"date-parts":[["2018"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Akram). Recent data from the investment sector has appeared to be shaky, but the Trump administration appears confident in their perspective and takes credit for the sturdy economic expansion.

Works Cited

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Akram, Tanweer. Monetary Tightening, Financial Markets, and the U.S. Economy. 2018.

“Economy Reaches Longest Expansion in U.S. History in the Third Quarter of 2019, Beats Market Expectations.” The White House, 30 Oct. 2019, https://www.whitehouse.gov/articles/economy-reaches-longest-expansion-in-u-s-history-in-third-quarter-of-2019-beats-market-expectations/.

Liu, Tao, and Wing Thye Woo. “Understanding the US-China Trade War.” China Economic Journal, vol. 11, no. 3, 2018, pp. 319–340.

Moore, Mark. "U.S. Economy Marks Longest Expansion in American History." New York Post, 1 July 2019, https://nypost.com/2019/07/01/us-economy-marks-longest-expansion-in-american-history/