Full name: Nguyen Phuong Quynh Class: CLC02

2nd Assignment - U.S. economy in 2016

After the decision to raise interest rate of The Federal Reserve, many people
wonder about the U.S. economy in the near future. Some American leading
economic thinkers suppose that this year offers great opportunities for growth,
while other experts argue that America would face several major risks. This
essay will discuss both positive economic outlooks and troublesome problems
that the USA may encounter in the year 2016.
On the one hand, the American economy is expected to improve steadily after its
slow thanks to lots of positive signs shown in the past year. According to Cecilia
Rouse (2016), low unemployment rate and economic improvement outside
American market could greatly accelerate economic development in the United
States. Also, U.S. monetary policy and a rise in interest rate just announced by
The Federal Reserve are substantial contributions to American economic growth
in this year. In addition, Deborah Lucas (2016) believes that the economy of the
US will stay strong in 2016, stimulated by prolonged low energy prices, interest
rate as well as a normalized labor market. Besides, the recent study of BMO
Harris Bank indicates that the majority of American business owners and
executives are looking forward to bright economic prospects. Due to the active
involvement of businessmen and investors in economic activities, "businesses
are reaping the benefits of investments and productivity improvements, and
buoyant consumer demand is creating opportunities (Michael Gregory, 2015).
This will result in the remarkable progress of the national economy.
On the other hand, this year, there are some potential risks, which have an
adverse influence on the economy of the United States. The first one is a political
risk, which is one of the most concerning issues. Americans are going to elect a
new president, and they fear that their choices may lead to the erosion in the
federal government. This may result in negative consequences since advanced
economies need functional federal governments (Jared Bernstein, 2016). For
example, Diane Coyle (2016) says that the standing of the US in the world is
diminished because Donald Trump runs a campaign to hold geopolitical power;
therefore, American people are very angry and dispute his action. Another social
risk that Americans may experience is the rising burden of fundamental
reformation on the economy. Caroline M. Hoxby (2016) says that yet reforming
programs such as Medicare and Social Security causes the fear of the latest
crisis, which is not useful to let the economy re-equilibrate.

In conclusion, it seems that the economic prospects for the U.S. economy in
2016 are very complicated because of the both positive and negative possibilities
mentioned above.

References
Could the American economy tank in 2016? (2016, January 4). Retrieved
January 4, 2016, from http://www.politico.eu/article/could-the-economy-tank-in2016/
Positive Outlook for 2016: Business Leaders Expect U.S. Economy to Continue
to Improve. (2015, December 17). Retrieved January 4, 2016, from
http://money.cnn.com/news/newsfeeds/articles/marketwire/1235880.htm