America’s economy continued to fall this year, with share prices falling since the start of 2016 along with European and Asian countries. America’s economic system is on the verge of collapse of economic freedom due to large state loans and ever-expanding government expenditures. For a stock market, these bears and bulls game may be a routine work, but a consistent decline in S & P 500 INDEX is raising many eyebrows. Many factors are involved including current situation of Middle East, a tension between America and China, and more importantly pessimism of investors due to falling oil and share prices. All in all, these factors directly affect U.S economy.
This dwindling formula aided Republicans to gain much support in Congress and Senate acting as an alternative to giving support to the economic failure of Obama’s policies. Evil policies of Democrats may result in their loss in forthcoming presidential elections. Though America is producing a massive amount of goods and exporting them to the entire world from airplanes to laptops, crude oil, and electronics as its main exports. Texas alone sold nearly $34 billion in petroleum category in 2015. Moreover, political tensions, including religious extremism, racial inequalities, and social issues have made an adverse effect on government as well as economy since Obama regime. According to series of Gallup surveys, faith on government & its policies is lowest in 10 years, as people think that corruption is the core problem of bad governance widespread in government officials. U.S government is imposing corporate taxes as high as 35 percent giving a sharp blow to corporate sector with no preferable economic reforms. The fact is corporate taxes in the United States are highest in the world, along with income tax rate of 39.6 percent making it dangerous for investors and entrepreneurs to stem their businesses in America.
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| Obama delivering policy speech |
Average tariff rate is nearly 1.5 percent causing the increase in basic prices of cotton, sugar, and other raw materials; however, imports are restricted in the aftermath of 2010 financial reforms, blowing apart private sectors and firms. Economic Development is slowing down since 2010, and now, it is falling apart in last three months pushing U.S towards another bankruptcy.
American dollar devalued over the past decade especially since 9/11 and Afghan war along with other currencies. Many market analysts panic that the $600 billion program of numerical help by the U.S. Federal Reserve may give some heat to “competitive devaluations” across the globe that could be used as catalyst to worldwide currency disaster. This devaluation process may cause death to many fiat currencies sheltering under IMF and World Bank. China, Russia, and Japan showed huge concerns over devaluation move as they must have to devalue their currencies too in response. Devaluation is herding investors away from paper money to solid reserves such as gold and silver, resulting in all-time high worth of silver going as high as $40 per ounce. On this devaluation process, World Bank President Robert Zoellick is sincerely advising world economies to use gold as an indicator to set foreign exchange rates.
