The 21st Century Economy

1 Pages 321 Words

The 21st Century Economy in the United States can be characterized as a very prosperous economy. The article “The 21st Century Economy.” In Business Week describes how the 90’s are no fluke. This decade has turned out to be a decade of unexpected prosperity.
When the United States came out of World War II, United States productivity growth was at high levels. Then in the 1970’s it dropped mysteriously. This low productivity growth continued to the middle of the 1990’s and was thought to continue this way. Suddenly in 1995 productivity gains started to rise to overwhelming heights. In long run economics, productivity growth is the most important. This determines the path of income per capita, which effects out living standards. According to Robert D. McTeer, president and chief executive officer of the Federal Reserve bank of Dallas, two factors determine the rate of economic growth; productivity increases (more output for the same amount of inputs), and labor (the number of hours worked.
There are many benefits that go along with the economic expansion we are experiencing. The current expansion has commonly been referred to by economists as “The 1990’s Economic Boom’, because the current growth of the United States economy is the longest ever in peacetime. Economists observe that the expansion has benefited nearly every American. According to the reports of the Labor Statistics, more than three out every four jobs created from 1989 to 1995 were highly paid professionals and managerial position. The Council of Economic Advisors reported that in Ninety-five and Ninety-six, more than half of new jobs created were in fields where the average wage ranked in the top third of all salaries. Another great benefit according to the Investor’s Business Daily in the January 19, 1999 publication is that 1.67 million families left welfare roles and 1.74 million more single parents found jobs...