A macro analysis of the united states recoverywith a particular focus on public debt

Dr.Sc. Selman Selmanaj, Donika Limani, Pëllumb Reshidi

Abstract


The intention of this paper is to analyze the lingering effects of the 2008 crisis in the United States and the implication they have on the policies undertaken by the Obama administration. A particular focus is given to the debt accumulation and how that relates to the challenges of the long run development of the American economy. The first part of this paper will give a brief overview of some of the elements central to the causes of the crisis, namely the centralization of wealth and its implication for the unsustainable consumption patterns. It will then follow to consider how the previous issues relate to the weak aggregate demand and the expansionary policies used to tackle it. Additionally, an overview of the crisis effect on the already troubled labor market is laid out in the third part. After exploring the interventionist policies used by the US administration in the after-crisis period, we move on to the presing issue of debt and possible scenarios that may arise in case it is not seriously addressed.

Keywords


US Crisis; US Recovery; Labour Market; Consumption Patterns; Public Debt

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DOI: 10.21113/iir.v2i1.162

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Copyright (c) 2016 Dr.Sc. Selman Selmanaj, Donika Limani, Pëllumb Reshidi

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