Common Economic Problems
Although worrying does not help to solve problems, it nevertheless creates the urgency to discover solutions.
Since 2008, many economies around the globe have been experiencing many challenges.
The debt situation for instance has been proving desperate.
In many economies such as in the US, the deficit has grown to several trillions of dollars.
This means that a significant portion of the federal budget goes to pay off the interest on debt.
Some of the common economic problems include: · Healthcare costs Although the goal of many nations is to reduce the cost of healthcare, the cost of healthcare has been on the upward trend.
Furthermore, the spending by government on healthcare has been on the rise.
In the US economy, for instance, Medicare accounts for 15 percent of the federal budget.
Therefore, to make healthcare competitive and affordable it is important for measures to be put in place to reduce the costs of healthcare.
· Housing crisis Many houses are in problems, with millions of homeowners being behind in submitting their payments while millions of other homes are in the process of foreclosure.
It is projected the value of homes is likely to move downward.
Houses are considered the largest asset in the balance sheet of an individual.
Therefore, the value of the home has a significant impact on their net worth.
When the values are down, people get into more problems because borrowing capability is diminished while consumer spending is affected.
Furthermore, the rental prices rise because supply is down.
Former homeowners choose to rent resulting in rental prices rising, as well.
· College tuition cost A college degree is very important because it determines the income levels and wealth creation, which generates into economic growth.
However, the cost of tuition has been on the rise.
According to statistics, tuition fee has been doubling every 9 years or so.
Furthermore, the cost of books, board, room, etc has been rising beyond the rate of inflation.
Therefore, college education is becoming expensive, beyond the reach of the average citizen.
· Lack of jobs Unemployment is a common problem being experienced in many economies.
It is becoming increasingly difficult for people to find jobs.
They are many reasons why this is the case: many people are unwilling or unable to relocate where their experience/skills are needed.
Some people remain jobless because they have unrealistic expectations about their compensation.
Therefore, they choose to leave their current jobs to look for better opportunities.
Furthermore, some of the job seekers do not possess enough experience- their employment gaps make them less competitive when compared with other candidates.
Since 2008, many economies around the globe have been experiencing many challenges.
The debt situation for instance has been proving desperate.
In many economies such as in the US, the deficit has grown to several trillions of dollars.
This means that a significant portion of the federal budget goes to pay off the interest on debt.
Some of the common economic problems include: · Healthcare costs Although the goal of many nations is to reduce the cost of healthcare, the cost of healthcare has been on the upward trend.
Furthermore, the spending by government on healthcare has been on the rise.
In the US economy, for instance, Medicare accounts for 15 percent of the federal budget.
Therefore, to make healthcare competitive and affordable it is important for measures to be put in place to reduce the costs of healthcare.
· Housing crisis Many houses are in problems, with millions of homeowners being behind in submitting their payments while millions of other homes are in the process of foreclosure.
It is projected the value of homes is likely to move downward.
Houses are considered the largest asset in the balance sheet of an individual.
Therefore, the value of the home has a significant impact on their net worth.
When the values are down, people get into more problems because borrowing capability is diminished while consumer spending is affected.
Furthermore, the rental prices rise because supply is down.
Former homeowners choose to rent resulting in rental prices rising, as well.
· College tuition cost A college degree is very important because it determines the income levels and wealth creation, which generates into economic growth.
However, the cost of tuition has been on the rise.
According to statistics, tuition fee has been doubling every 9 years or so.
Furthermore, the cost of books, board, room, etc has been rising beyond the rate of inflation.
Therefore, college education is becoming expensive, beyond the reach of the average citizen.
· Lack of jobs Unemployment is a common problem being experienced in many economies.
It is becoming increasingly difficult for people to find jobs.
They are many reasons why this is the case: many people are unwilling or unable to relocate where their experience/skills are needed.
Some people remain jobless because they have unrealistic expectations about their compensation.
Therefore, they choose to leave their current jobs to look for better opportunities.
Furthermore, some of the job seekers do not possess enough experience- their employment gaps make them less competitive when compared with other candidates.
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