Int. Micro Presentation

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by Skyler Desrochers10 views·Updated May 13, 2021
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  1. Hi everyone skylar directly with you.
  2. For my presentation, I chose a Wall Street Journal article
  3. called Economy poised for best growth since 1983 inflation lurks.
  4. Um it is predicted within the United States economy that
  5. economic growth is approaching an all time high since 1983.
  6. Um in 1983 of the United States, economic growth had
  7. reached about 7.9%,, And as of April 2021, economic surveyors
  8. forecast that we could reach about 6.4 of economic growth.
  9. Um so first, what happened in 1983 In the 1980s,
  10. up until 1982, uh There was a recession because of
  11. Ronald Reagan's implementation of tax cuts, as well as the
  12. slashing of spending and social programs for citizens, um because
  13. he believed that the government was too intrusive on citizens
  14. lives. Um But with this recession combined with falling oil
  15. prices and the Federal Reserve's control over money, it actually
  16. curbed inflation, after which this time period turned into the
  17. longest period for economic growth that we've had throughout history.
  18. So how is our economy growing so fast?
  19. Um we all know that because of COVID-19 people were
  20. out of work for a long period of time because
  21. of quarantining, which caused a decrease in spending as well
  22. as our businesses and companies to shut down.
  23. And now with the vaccine out, um people are more
  24. comfortable going out in the open restaurants are opening back
  25. up, stores are opening back up and we're starting to
  26. get into a full swing of our economy just getting
  27. back to the way that things were.
  28. Um So as life continues to normality, our our economy
  29. is spending at a super high rate where in turn
  30. money doesn't have as much of a value.
  31. Um which is what is making economists wary for what
  32. the future holds because in reality, COVID-19 is one of
  33. the biggest non intentional economic experiments that has happened in
  34. our history.
  35. So, although we can use economic tools to hypothesize, yeah,
  36. how things are going to turn out and where our
  37. economy is growing, we're still not quite sure how history
  38. is going to excuse me, how the future is going
  39. to unfold.
  40. So, this is a chart from the United States Bureau
  41. of Labor Statistics, Which shows how we're at an inflation
  42. rate of 2.6 as of April.
  43. And this chart just shows um the consumer price index
  44. inflation rate for the entirety of products that are taken
  45. into consideration, which you can kind of see above this
  46. chart here, there's a whole lot of different products that
  47. are taking into consideration for what consumers purchase and to
  48. kind of give you an idea as to how products
  49. are affected.
  50. Um 3.3 of grocery food prices have increased, and energy
  51. and gas prices have also increased By 22.5%.
  52. Um Down South is getting kind of the brunt um
  53. of this right at the moment, if you haven't seen
  54. it online, um it's kind of crazy how gas prices
  55. are climbing in certain areas, so how can we fight
  56. inflation? Um So they're kind of three ways in which
  57. the government deals with this.
  58. The first would be to increase interest rates um where
  59. banks borrow money from the Federal Reserve um and banks
  60. will lend money at higher rates and because of this,
  61. fewer people want to borrow money when it cost them
  62. more money in the long run.
  63. Um The second way to fight inflation is to increase
  64. reserve requirements, where banks have to maintain an amount of
  65. cash to cover withdrawals and aren't allowed to go below
  66. that amount.
  67. Um And more money needing to be held means less
  68. that they can lend out to consumers.
  69. Um They third way to fight inflation is that the
  70. government calls and debts and increases interest on bonds um
  71. primarily so that investors will buy them.
  72. Um And the 2nd and 3rd way to fight inflation
  73. is B is usually most common because it takes money
  74. from banks, um investors and companies and it puts it
  75. into the pockets of the government so that they can
  76. have easier control over the situation.
  77. Um But it's important to note that these forms of
  78. solutions for inflation can also result in large unemployment employment
  79. rates. Um and external issues.
  80. Um So how this relates to the class, we've talked
  81. about the influence that the government has over society and
  82. over our domestic markets.
  83. Um Our supply and demand was low because of quarantine
  84. and companies going out of business.
  85. So in order to keep us somewhat afloat, the government
  86. distributed stimulus checks um so that there would still be
  87. movement within our markets so that people could keep their
  88. houses so that people could feed themselves pay rent.
  89. Um And now that we're getting back to normal, it's
  90. also important to note that the moves the government make
  91. um in order to help us in the future.
  92. Um And so the questions that I have for everyone
  93. are in which areas of our economy do you think
  94. inflation will affect the most once our economy is up
  95. to full speed To do you think it's possible to
  96. surpass the 7.9 economic growth of 1983 And three?
  97. How do you think the government is going to react
  98. to inflation rates after COVID-19?
  99. I hope that you take these questions into consideration and
  100. thank you for listening to my presentation