The following piece of writing is an advisory to you, the president of the United States of America. It is an actuality beyond doubt that the American economy has been in long existence because of its dominance in the international markets. Indeed, it is a voice to reckon and give respect to. When I look at the nature and strength of the economies of other nation, what comes out clear is the nature and extend in which the American economy has taken a firm and established control of the world market. It is a credible idea to have this state of economy continues with this kind of efficiency and effectiveness in the market. A fact remains clear that for this economy to continue and even change and be dynamic to meet the requirements of the market, one or two particular things have to be skilfully done.
The strength of the American economy can be dated back to the periods of the birth of the nation’s independence. This is a clear illustration of how far this economy has walked the long aloofness to get to where it is at the moment. The GDP of nearly $14.7 trillion in the year 2010 was just but an example of how it consumes almost a quarter of the global nominal GDP. This stability in the GDP is due to a number of factors as stronger purchasing power parity, a high and maintained level of output per capita among other parameters of estimation and performance. Mr. President, this in itself is a clear show of how the economy of the state needs to be maintained at this particular level for the betterment of the country and its citizens at large. The world knows that the largest trading nation is the United States of America, hence this has made many nations want to partner with the nation, for instance the Canadian, China and the Mexican nations are already partners to the economy of the United States of America. It is a word trade centre in the making.
When we look at the history of the economy of this nation, we are left to know that the nation has kept a stable and ever growing GDP growth rate overall. The nation has always been at the verge of making sure that the GDP has been left with a progress whenever an economic transaction is done. It has been the responsibility of the nation, the president and the entire population to make sure that at the end of every business, there should be a growth in its general stance. GDP is a good and predictable parameter in which the nation has been able to measure and compare its ability and rate of growth with those of other nations.
Unemployment is one of the aspects that have been dealt with, with firm and resounding efforts. Though the rate of unemployment has not been totally accomplished, it is clear that the country has always been exemplifying ways in which it can deal with this problem once and for all. It is from these copious efforts that the nation has seen improvements in curbing the problem of unemployment among its citizens. The levels of research and capital investment are at the peak simply because of the government involvement in them. Research is normally being carried out as concerns new ways and means of investing either in or out of the nation. Theses efforts are directed towards creating channels that will act as sources of revenue and income to both the citizens and the nation as a whole.
Since the 1970s, the United States of America has been the best in manufacturing of products and services to its people. This fact cannot be overemphasised since it is clear even from the aspects of production that are evident in what the nation produces. This nation, Mr. President represents 19% of the global manufacturing nations, hence it is the worlds largest. The goods that are manufactured have always been taken to the markets within and outside the nation. This has helped the nation a great deal in building its economy, and even helping other nations towards building the same.
Foreign investment is another feature that the nation has taken roots in. As you can see, Mr. President, there are various treaties and agreements that have been established between the United States of America and other nations as china. These codes of agreement are generally meant to solidify the bond that is there for commercial purposes. It is with this effect that many nations have assisted in the building of the economy of the United States of America, thus there is need, Mr. President to incorporate many other nations in the business of the nation. Still on the history of the economy of the United States of America, there are enormous evidences and examples of how the individual citizens of the nation have contributed towards building it. Just in the year 2009, it was discovered that 30% of the world’s millionaires have their homes in the United States of America. This in itself, Mr. President, is a major boost towards the growth and development of the nation’s economy.
When we look at the performance of the nation in the 1960s, the nation’s economy absorbed various savings from other parts of the world. This has been the case even to the present time, Mr. President. Foreign investments earn the country more than any other nation, and this has to be kept at bar for the economy of the nation be able to support its citizens. The country has also done a lot in other nations amongst them, china, Canada and the United Kingdom. Proper ideology and economic standings are critical issues that have to be kept vehemently for these nations to remain faithful to the nation’s economy. Furthermore, public debt is an aspect that has been nagging the nation’s efforts in progressing to greater heights. There should be no state of mixed economy since this is a thwart to the fulfilment of objectives that have been set by the corporate economy in assistance of the nation.
Mr. President, there are true facts that have to be laid bare and worked on in a bid to ensure economy safety. The nation’s economy is in some state of stagnation. An approximated growth of the state economy is around 1.8%. This is a slow rate Mr. President, and something urgent should be underway to make sure that it is quickened. The rate of consumer spending is low, prices at home are low with jobs and wages being registered nowhere. This is a bitter truth that should be understood by all Americans in order to appreciate effective measures of remedy).
To mention a few, thirty years ago, the nation went down due to the great depression, and since then, the economy has been stagnating with unexplained inequalities, culmination in the great recession and a worrying rate of recovery at the tick. During the period of great prosperity, the nation had taken implementations that had seen it rise economically. This comprised of mass production and mass consumption that sow a balanced trading environment. Well, that was during the period of three decades ago. During this period, people were able to easily get jobs and wages trending upwards. The government had acted on this by enforcing various bargaining ways as Keynesian policy that empowered workers with more bargaining power. There was a provision of social insurance; public investment expansion besides middle scale earners had an improvement in their earnings as compared to the high income earners. This marked a significant growth in the economy of the nation as a whole. There was a growth in the productivity of the nation marked by increased income among the workers and business initiatives. Policies were put to oversee the nature of work that was being done by citizens in many companies. This was directed towards making sure that overtime work was well paid for among every working individual. These are just but policies, Mr. President that should be embraced as the first step in rebuilding the economy of the United States of America (Maguire 2010 p. 78-80).
The central factor in the establishment and maintenance of the United States of America economy is the kind of freedom that has been offered to the private sector. This is specifically in the making of decisions of determining the parameter in which the nation’s economy should be based on. The nation has made enormous production due to the decisions that have been formulated and implemented by the private sector. The government has very slight chances in influencing and regulating the decisions that have been taken by the private sector. This has extended to the court systems protecting the property of the individual sectors, and implement respective contracts. As a result of this, Mr. President, the nation has made advances in establishing accommodation to numerous small scale business establishments in the country.
Science and invention are some of the nation’s corner stones in the establishment and maintenance of economy. It is due to this, Mr. President that the nation has become a centre of innovation as in internet, airplanes, refrigerators and even electronic devices as ATM services. These devices and services are used all over the world. This therefore should be kept at high performance since it strengthens the nation’s economy (Haines 2001 p, 32). Technological undertakings have been established and used in the country since time immemorial. When we compare the economy of the nation with those of other nations, in the year 2000, it was as graphically represented below:
Natural resources are some of the other products that have been able to keep the economy of the nation even at times of hard economic crises. Mineral salts and fertile farm soil are just but a few of these resources. The climate is moderate hence making it suitable for production. Water sources are accessible all the time, and are often used to shape the economy of the nation. The 50 states have been connected by these natural resources since they were established and maintained by the government of the United States of America (Goldin & Lawrence 2007 p. 47.
Policy initiatives for the future
As far as the economy of the nation has a lot to be admired and copied from, there are crucial policies that have to be formulated and implemented in order to support the economy of small businesses and transform them into large established businesses in the nation. First and foremost, there is need, Mr. President; to reduce the taxes levied on small businesses to the levels efficient for them to embrace. The hire act should respond positively with reduction of these taxes, since in the years 2008 and 2009, there was a marked reduction in the hire of workers by small scale businesses, attributed to increase taxing of these firms. Reduction in these taxes will see more job creation for the citizens hence help in building the nation’s economy.
Access to credit is another initiative that has to be undertaken with an immediate effect. An act to assist small scale businesses access credit should be formulated and signed by the president. This will provide funding for small scale businesses to hire and expand their business establishments. Access to government loans and other financial bodies should be a subject of concern in making sure that the economy of small scale businesses sprout and establish as expected. Financial stability plans should be embraced with an aim of freezing secondary markets and thus improving lending to small scale businesses.
A national export initiative should be implemented in the nations market. This will help benefit the small scale businesses. The proceed will help expand the reach of small scale business to international levels, and improve opportunities for other economies to grow. Through this act, small scale businesses will be able to export their products. A number of agencies will work together with this undertaking in improving, some of which will be the commerce department’s international trade administration. This agency will serve in providing training and various technical assistances that will help small scale businesses prepare and become exporters. Moreover, these agencies will ensure that pilot programs are established to link small businesses with export intermediaries. This will further help these businesses export their locally manufactured products.
Policies to oversee encouragement of greater access to capital should be elevated. Besides provision of tax cuts and raising the amount of credit to small firms, opportunities to access greater capital should be formulated and implemented. Formation of new businesses should be stressed among individual citizens of the country. The government should administratively launch several crucial initiatives that will facilitate the flow of venture and expanded capital to small businesses, with more ventures being established. Venturing to international market corridors is another aspect that goes hand in hand with creation of business opportunities.
Small business investments companies programs should be introduce to feed into the economy of the nation. This will cater for the needs of private sector businesses. They do this by raising equity capital originating from private sources. Entrepreneurship is a sector that has not been well exploited by the people of United States of America. This is therefore a chance for many individuals to get self employment through what they naturally or inventorially have. This, Mr. President, should be promoted in regional clusters. More funding should be done to individuals in these regions because of the fact that they have what it takes to participate actively in promoting the economy of the nation. Moreover, there is a notion of starting up America. This involves particular federal policies and public-private partnerships that are aimed at promoting the activities of the entrepreneurs. This moreover aims at increasing the growth start-ups that establish both economic growth and job creation.
In conclusion Mr. President, there is greater need to have well established levels of knowledge in the nation. This entails the aspects of educational, technological and intellectual developments that have to be done among the lives of the American people. This first starts with the nature of education system in the nation. With the nature of dynamism in the world, the people of this nation should therefore be equipped with respective and efficient skills that will give them the know-how to propel the economy of the nation to greater heights. Moreover, educational institutions are of subtle importance in the realization of this dream. When all these factors are put under consideration, America will experience one of the greatest economies in the entire globe.