Introduction
Economic recession is the persistence decline of the gross domestic product for over two consecutive periods. The National Bureau of Economics Research have describe a recession as a drastically fall in economic activities in nearly half a decade. The United States economy has experienced several downturns to name a few The Great Depressions of the 1930s, the Financial Crises of 2007 among others. There are many factors that characterized each recession and solution of each. Factors such high unemployment rate among citizens, world war, and terrorism among others has dramatically played a major in these recessions. Government debt between The United States and other countries of the world had tremendously increased to up to $63.1 trillion as per International Monetary Fund. This can be traced its roots back to Great Recession. The United States government has an internal debt of $20 trillion. This domestic debt includes what it owes its self. Gross debt fewer government assets calculate the net debt about the deficit. Globally many people view The United States as a global economic powerhouse. In a research conducted by Pew Research center across 38 countries indicate that 42% see The United States as an economic master of the world. Never the less, most European nations considered China as the world industrial giant. These are because of the financial crisis the f 2010s in the U.S economy. But recently the trend had also returned back to where it was. Most countries have returned to their perceptions where they viewed the U.S as an economic powerhouse of world. The competition between the two countries’ economies namely China and the U.S had some factors like their leader's popularity had contributed to this. The United States has a liberty when it comes to global reputation. We shall focus on economic recession, government debt and economic power respectively in our study.
Economic Recession
High level of unemployment is one of the critical factors that have led to The United States economic recession. The research conducted on U.S adult between 2006 and 2016. Sample size collected from the population was 5006 with a level of +/- 1.5% error of estimates, 95% level of confidence while those who are unemployed were a sample size of 3,096 +/-2.0% error of estimates, 95 % level of confidence. About the job security for the next 20 to 30 years, they had the following views: in 2006 more protection was 11%, less security 62%, status quo 24%, and no idea 3%. While in 2016 barely ten years after, more security was 16%, less protection 63%, status quo 19%, and no idea 2% while the sample size was 2520. Those who were employed, in 2006; more security was 11%, less protection 64%, status quo 23%, and no idea 2% while in 2016; more security was 15%, less security 65%, status quo 19%, and no idea 1% the sample size was 1542. The other factor that affected employment level is the benefits derived from such employment, for example, health insurance, allowances and pension’s schemes. 25% find it better, 49% average, 23% status quo and 3% had no idea. On the improvement of their skills, 66% thinks has to be frequently done, 9% less often, 22% status quo and 3% has no idea sample size was 2520. About loyalty to their employers, in 2006; 8% were more loyal, 51% average, 31% remained the same, and 4% had no idea while in 2016; 15% were more loyal, 56% average, 27% remained the same, and 2% had no opinion on the subject. About whether their employers give them adequate training to sharpen their skills, 36% were in agreement, 29% had less instruction, 31% remained the same, and 5% had no idea over the subject. In every data survey an allowance of 5% error of estimates had been given ("State of American Jobs Survey | Pew Research Center").
Employment was affected by the level of job security both from the unemployed and those who were already at work. Both categories of the people have the same thought about job security concern. This is because they tend to differ with less than 1% +/-. According to the data, more individual has low confidence in job security. This is because the highest number lies at where there is less job security. On the issue of job retirement benefits, pension scheme, allowances such as vocations and health insurances, the data indicated that more citizens had an average view of the problem. There is a more concentration of 49% not as good. These had done from both employed and unemployed combined chart. When asked if they feel that if there is a need for them to improve their skills to that they can keep up with the current developments, in the working environment, most of them think that it would of vital help. However, the number has been declined by 4% over the ten years. Loyalty to their employees might be one of the factors. The report shows that still, the most significant groups are average loyalist toward their employees. Meanwhile their number had been slowly increased with 5% over the 10 years span. That is roughly 0.5% per year which is still minimal. This might have been caused by the perception the group had about job security and thus having a notion that they can be landed jobless at any particulars time. The group holds the point that their employers training are of great help and they should receive more training from them. That way they will nourish their skill to face the obstacles along their career work. The workforce is redundant toward their core mandate and achievement of the intended goals ("State of American Jobs Survey | Pew Research Center").
Government debt around the world
As at 2016, The United States debt stood at a gross of $19.9 trillion. All indebtedness to its states and those it owes to itself is included in the figure. Japan follows with $11.4 trillion while China is the third with $ 5 trillion. According to the treasury department. The debt has been rising from 1996 to 2017. The debt slowly declined from 1996 to 2000 from 63.4% to 55.7%. Between 2000 and 2001 the debt remained static at 55.7%. From 2001 to 2004 the debt shoots upward to 60%. For the next four years, there was a state of reluctant and the debt level remained the same. The deficit took another turn and rapidly went up to as high as 100% in 2014. There was a decline between 2014 and 2016, but it followed by a rise to 103% in 2017. This debt is a combination of all national debts
The Interest payment on debt has been fluctuating time and then. Between 1980 and 2000, the amounts have been so much high at 15 %. But from 2000 to 2017 it falls to 6.8%. The interest accrued was estimated to around $276.2 billion by the end of 2017. The government budget to pay $475.5 billion investment within the same year. Another arm owed 27.6% of the debt. That brings about $5.48 trillion. The social security’s funds have around 14.7% of the total debt. The Federal Reserve has a share of 12.4% of the total debt..
The government is paying historically low rates on its debt. Public debt had interest rates of 2.232% and 2.279%. Therefore, securities have lower risks compared with other nations ("5 Facts about the National Debt").
This whole data brings about the question on to whether the U.S has the most government debt in the world. It is evidently shown by the graphs well. There was $25million unused debt capacity. This is an unproductive debt which still attracts interest and therefore increasing the amount to the core principal. The national debt has superseded the gross domestic product. This was the catalyst for the financial crisis of 2007. This has not happened for so long since toward the end of World War 2. The United States security has been held up widely since biggest creditors, social security funds and Federal Reserve System have the most significant shares of the debt owed by the government. This means that nearly quarter of the debt owed is with other arms of government. And since each state has its debt structure and repayment plans, then the central government find it hard to consolidate and restructure the repayment schedule for the debt. There is a decline in debt interest payment toward the end of 2017. This is as a result of interest credited by social security. After Great Recession, the government was determined to lower the rates, and this has led to it be paying lower historical low rates. This has made the debt to remain significant. China being the second in debt, owes only 5.8% of The United States debt about $1.15 trillion and $202.6 billion. That is less than an eight of the total debt owned. Japan, on the other hand, owes $1.1 trillion. Therefore the government has to increase more an effort restructuring its debt so that it can make repayment schedule in advance. This will make the government more efficient when it comes to allocating and financing its project that will, in turn, make repayment more efficient.
Worldwide, many name U.S. than China as World’s leading economic power
U.S is viewed as second world economic power after China. Research conducted shows that Canada, Spain, United Kingdom, France, Germany, Sweden, Netherlands, Poland, Hungary, Russia, Lebanon, Jordan and Australia view China as the most world leading economy. Alaska, Mexico, Peru, Brazil, Argentina, Chile, Colombia, Venezuela, Turkey, India, Tanzania, Vietnam, Greece, South Korea, Kenya, South Africa, Ghana, Nigeria, Senegal, Japan, Israel, Indonesia and Philippines view The United States as the economic powerhouse. This represents 74% of the total countries of the world. The pro U.S believes that the Americans made their country and therefore they are entitled to their effort unlike China. They believe that it is through hard work that the American has made it to the top. Most of European countries rallied behind China. But Italy gives both nations a draw as they tied on the rank. This is as a result of many factors such as debt level of both nations, relationship between the two countries with other countries of the world. There are also other countries that were undecided over statistics. Such countries are Green land, New Zealand, Saudi Arabia, Nepal, Mongolia among others. Most of African countries did not vote any side because they were torn between the two countries economy. This is because in the recent past, China had invested heavily on African soil. From structures to technology, therefore it seems that they have dwelled so much to even invest externally. The United States on the other hand have been investing too on African soil. In fact, it had been the leading investor to the African continent. Therefore these twists hold the perception of who is the biggest economy at bay among the Africans. The other factors that have influenced this perception are the ideology of capitalism and communism. Most countries follow their masters when it comes to these. This is due to the relationship that coexists between the two ("Globally, More Name U.S. than China as World's Leading Economic Power").
From the above, we can deduct a conclusion that both China and The United States has economic muscles. Each country has its most active supporter which they have interacted in one way or another. There are others who are yet not decided to which is the leading economic powerhouse. Despite China having invested in technology, structure, and regulated debt, U.S still leads in this race. This is because the ideology of capitalism which the Americans came up with had enabled them to prosper much far for a long time. On the other hand, China is still a communist nation, and this had made it slug economically. The population is another critical factor. China is the most populated nation in the world. This accompanied many problems associated with the mass. Most of the revenue generated by this nation is used to cater for the citizens. The U.S on the other side has a small population but create a lot of income. These revenues are used to foster economy up. The other factor is that U.S comprises of many ethnic communities from all over the world, in fact nearly all U.S citizens are people who migrated there. These have solidified by the National Lottery that offers new entrant to the country. This person brings in new ideas and development to the state. They enrich the economy. On the other side, from history, China has not allowed more visitors to their country. Therefore they have remained with their ideas, and this makes their economy to lag behind. The involvement of U.S in many wars is one of the bottlenecks that the economy of this country faces. More funds are invested in this field. This fund makes the debt to be so much huge and thus makes the economy sluggish.
References
"5 Facts About Government Debt Around the World." Pew Research Center, 19 Sept. 2017, www.pewresearch.org/fact-tank/2017/09/19/5-facts-about-government-debt-around-the-world/.
"5 Facts About the National Debt." Pew Research Center, 17 Aug. 2017, www.pewresearch.org/fact-tank/2017/08/17/5-facts-about-the-national-debt-what-you-should-know/.
"Global Public Downbeat About Economy." Pew Research Center's Global Attitudes Project, 9 Sept. 2014, www.pewglobal.org/2014/09/09/global-public-downbeat-about-economy/.
"Globally, More Name U.S. Than China As World's Leading Economic Power." Pew Research Center's Global Attitudes Project, 13 July 2017, www.pewglobal.org/2017/07/13/more-name-u-s-than-china-as-worlds-leading-economic-power/.
"State of American Jobs Survey | Pew Research Center." Social & Demographic Trends - Pew Research Center, www.pewsocialtrends.org/dataset/state-of-american-jobs-survey/.
"U.S. Image Suffers As Publics Around World Question Trump's Leadership." Pew Research Center's Global Attitudes Project, 26 June 2017, www.pewglobal.org/2017/06/26/u-s-image-suffers-as-publics-around-world-question-trumps-leadership/.
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