“Economy’s Supply Side Sputters:”
While it is commonly known that the economy sputtered in 2008 because of faulty loans and other issues present, what isn’t as well known is the long-lasting impact this has had on the American labor force. This article has made it abundantly clear that the U.S. economy is making strides to return to where it belongs but is far from where it needs to be. Greg Ip, the author, really further elaborates on how the unemployment market is shaping currently and how it has an affect on the U.S. economy. There are two graphs that really illustrate his points. The first, shows the difference in percentage points between those who are not actively looking or work and those who do want a job. With exception of a couple years, this graph has never been this widely disappeared as it tries to recover to the two functions perfectly meet at 2000. The second graph, shows the difference between the unemployment rate and the amount of jobs available. With a huge spike in unemployment during the recent session, this gap has made some recovery but isn’t to where it needs to be. These two graphs perfectly connect to the greater ideas that the author discusses and how the American economy still has the demand for goods and services but there is still a discrepancy between those who want and those who will make. This gap is progressively getting better but there are still high unemployment rates and government programs (Obamacare) aren’t helping the U.S. supply side because people who are making more money receive less benefits and this discourages the Americans incentive to continue to work as opposed to just using it as it’s intended purpose to be a jumpstart out of a bad situation. Now when I normally began reading this article I naturally believed that the economic model from Chapter 12 that was present was supply side. While this is partially correct, I believe that the author of the article is taking a much more monetarist approach towards this...