Economic instability affects low income families and workers in certain sectors. The economy ebbs and flows throughout history and all throughout the United States. Economic instability, characterized by fluctuating markets and potential downturns, can occur due to various factors like stock market crashes, changes in interest rates, asset price fluctuations, and even unforeseen events, impacting consumer spending and business performance.
Economic instability is important because it can lead to negative impacts on individuals, businesses, and the overall economy, potentially causing unemployment, poverty, and hindering economic growth and development. It can also significantly decrease the GDP of a country, which can impact the individuals living in that country. It can exacerbate health issues, social inequalities, and hinder overall economic and social progress. The global economy is facing slower growth than the pre-pandemic average, with ongoing structural challenges like weak investment, slow productivity growth, high debt, and demographic pressures. The global economy faces significant instability, with weak growth, persistent inflation, and rising interest rates in major economies, exacerbated by the lingering effects of the COVID-19 pandemic and the war in Ukraine.
Economic instability is a topic more people should be focusing on. Saleem from FMS had this to say: “The economy could be better, and I hope that we can fix it in the future. I hope that we can make it even better than it was.”
Renzo, also from FMS, added, “I really hope America can get their money. I hope that Trump can fix that. The economy really crashed in the recent years, so hopefully we can get it back in order.”
In a market economy like the US, day-to-day economic decisions are primarily made by businesses and individuals. They interact through markets, driven by supply and demand, rather than a central authority. Ways we can boost our economy include mentoring young people, advocating for better work pay, fair tips and wages, and buying from employee-friendly businesses. The economy could also grow with tax cuts and tax rebates. Having more cash means companies have the resources to procure capital, improve technology, grow, and expand. All of these actions increase productivity, which grows the economy. We can also create a favorable environment for businesses to invest by reducing regulatory burdens.
