It is quite remarkable that the United States has been by far the largest economy in the world. Owing to the fact that the country has abundant natural resources, high productivity, and well-developed infrastructure constructed via the laws led by the US constitution along with policies embarked by the United States Capitol. These several factors ensure long-term financial stability.
Apart from the geographical advantages, the technological advancements made by the country’s businesses, especially in IT, medical, aeronautical, and military, are cutting edge. This has led the country to be the most technologically powerful and innovative economy in the world as well.
With the most significant nominal GDP and net worth in the world, the U.S is a highly developed nation with a free-market economy. Also, the U.S. dollar, which is supported by its firm economy and stable government, is the currency that is most frequently used in international transactions. Globalization has also played an essential part in the development graph’s constant evolution.
We’ve learned from the recession that followed the previous financial crisis that economic models don’t account for intangibles like a company’s willingness to sustain strategic capital investments during an economic slowdown. Businesses and their stock compendium perpetuate the economy of this country. Recessions don’t have a history of lasting very long in this country. The average duration of recession in the U.S is marked at 11 months.
Monitoring the flow of the resources as well as innovation and the market holding jobs go hand in hand. While some characteristics can only be examined through the lens of government laws, the financial system structure of this country appears to be sound, accommodating inflation shocks.
Pressures on public finances will increase as the economy recovers from the closure. However, policy support should continue to be available as long as the economy is operating much below its potential. The continuation of measures up till the coronavirus is eradicated would interfere with productivity growth.
While no one can predict what economic events will unfold in the upcoming period of time, aiding Americans in re-entering the labor force and acquiring the skills required to take advantage of new job possibilities will also contribute to the resumption of the high levels of prosperity enjoyed by the citizens in the past