Our economy is the world’s second-largest in terms of GDP, and it is growing at about 15-20% per annum. This means that we are adding about 10% more jobs every year. How much are jobs? That’s how much we are adding.
In the context of our economy, we’re spending more than we are producing. If we don’t start cutting down on wasteful spending like our consumption of materials, energy, and labor, we’ll be putting more than half of the jobs in the economy in the hands of the very people who are creating the jobs.
We have to realize that the real question here is not so much how much we are spending as how much we are creating jobs in this economy. So let’s take the number of jobs we have in this economy (which is a lot) and think about what the rest of the economy is doing at that same time.
The United States currently has around 20% of the worlds jobs held by Americans. It’s only recently that the percentage has been climbing. We have about 17% of the world’s population, so we may be losing jobs to the other countries. We have about 16% of the world’s GDP and that will fall by about 20% in the next five years. If the United States is losing jobs, then the entire global economy is losing jobs, too.
To find out, we need to look at the top 20 countries (which are mostly the same) on the World Economic Outlook. We can also pull up the IMF’s World Economic Outlook report for countries around the world. The report shows that the United States has taken a dive in the world economy. It’s been losing jobs to Mexico, Canada, Germany, Sweden, and Japan. Japan has been losing jobs to China as well.
The United States has been losing jobs for more than eight years now, but the IMF isn’t exactly a reliable source of information. The report we’re looking at is the United Nation’s World Economic Situation and Prospects: The 2011 Revision.
The US’s current economic situation is really bad. The IMF is saying that the US is in recession, but it’s really a depression. And it’s a recession that’s going to continue for the next few years. This is because of the Federal Reserve’s interest rate hikes. The Fed’s printing money to try to boost the economy. The biggest reason for this is because the stock market is crashing.
The US is in a recession because, a) We are spending more money than we have in the bank, and b) The Federal Reserve has decided to start buying back $2B of our debt stock. These are the first steps the Fed has taken towards “quantitative easing,” which means that they are trying to inflate the stock market and thus make the economy grow faster.
There is a lot of debate about what is quantitative easing, but it’s essentially the Federal Reserve buying back government bonds and bonds that are backed by other government debt, such as bank loans. This way, the Fed can buy back less government debt and therefore lower the interest rates on government bonds. This is what is known as quantitative easing, and it is what the Fed is doing already.
One would think that a country in such a situation would want to increase its GDP. But that seems to not be the case with the United States. They keep increasing it year after year. As a result, the Federal Reserve is in a situation where they can buy a lot of bonds at a lower interest rate and thus increase the rate of growth in the economy. This is what is known as QE.