The National Economic Growth Rate is an economic measure that attempts to show how the performance of an economy compares to that of a peer group. This measures the differences between economies based on some standard benchmarks. These benchmarks are set in place to provide an accurate picture of national economic performance over time. The US currently ranks very close to the top when comparing to other peer countries. However, the future looks far from great for the nation.
It is a fact that the United States is currently sitting on top of the international economic chart. There have been times in the past where other countries such as Japan and China have also surpassed the US in overall gross domestic product. When it comes to national economic growth, the US economy continues to lag behind.
One major problem with the US economy right now is the high level of debt that many citizens carry. In terms of the overall size of the national economy, the United States is very far behind the rest of the world. This is in large part due to the high level of personal and business debt held by citizens. As time goes by, the government is required to increase its borrowing limit for loans. If current trends continue, the federal government will find it increasingly difficult to meet its debt obligations.
Many economists believe that the sluggish national economic outlook will continue into 2021. This is because, while private spending has picked up in the past year, growth in state and local governments has not kept pace. Until the economic picture turns around, expect state and local governments to continue to experience budget cuts. As a result, the tax base will become even smaller for both businesses and residents. Unfortunately, this will have a significant negative impact on overall consumer confidence.
According to the conservative Heritage Foundation, a key factor behind slower national economic growth is the relatively weak performance of the American military. In its latest scorecard report, the foundation says that the defense department has failed to achieve its long-term goal of building 30 new ships, which it had hoped to do by the end of last decade. The reduction in shipbuilding jobs is also hurting revenue for local economies. The slowing down of military activity will likely dampen investment in other types of military hardware.
As noted above, another key driver of national economic growth is the performance of American companies. Many analysts have indicated that although companies are making money, they are not being as profitable as they could be. Many have attributed this loss of profitability to a combination of factors such as excessive overhead, poor management, and ineffective business strategies.
Over the past few years, experts have noted that one of the most important drivers of national economic growth has been the increase in the number of . . . . . . working-age adults who are employed. Unfortunately, this gain in the workforce has also brought an increase in the number of persons who are classified as “employed but not self-employed.” These people do not own their own homes, and so they fall under the working-age population. One problem that often occurs is that these “employed but not self-employed” people do not have access to the same benefits offered to “working-age” citizens. As the unemployment rate continues to rise, it becomes increasingly difficult for these groups to make ends meet.
Recently, the government took steps to curb this issue by creating a national economic growth scorecard that would assess all of the assets and liabilities of the nation. This scorecard is meant to allow each citizen to properly assess his or her own personal capacity to fuel national economic growth. Although the current report card results do not show much growth in the national economy, many economists believe that things are going to change dramatically over the next few months. It is also true that many of these indicators are volatile, and it is important to remember that they are also affected by global events.