An Analysis on the Factors Affecting the Recent US Economic Growth Research Paper

An Analysis on the Factors Affecting the Recent US Economic Growth - Research Paper Example Since the degree of industrialization in the country is high, approximately 55% of its imports are crude oil (â€Å"The World Fact Book†). The economic prosperity of U.S. had declined to some extent during the oil price boom from 2001 to 2006 (â€Å"Recent U.S. Economic Growth†). The soaring prices of energy resources increased the cost of imports as well as industrialization in the nation. Moreover, the real estate sector of the nation was facing certain exuberances since the latter half of 2007 in U.S. (â€Å"The World Fact Book†). The real estate’s homes were traded for speculative purposes in the country. Over time, failure of some projects lead to severe crisis in the U.S. money market during 2008. The commercial banks were forced to offer to accept direct implicit bail outs and some of them like Lehman Brothers had collapsed due to severe financial crisis. The recession in 2008, had significantly lowered the economic growth of U.S. since the Great Depression. In order to set everything in the right state, the U.S. government in 2008 has decided to inject $700 billion in its market through the enactment of the Troubled Asset Relief Program (TARP) (â€Å"Recent U.S. Economic Growth†). Some of these funds were utilized by the state federal government for purchasing equities of banks and some industrial corporations. In addition to that in 2009, under the guidance of President Barack Obama, the Federal government injected an additional sum of $787 billion in the U.S. economy (â€Å"The World Fact Book†). It was claimed that this fund was supposed to be allotted for financing the expansionary fiscal policies of the country from 2010 to 2011. The federal budget defici t measured in terms of percentage change in GDP in U.S. was 9% in 2011 but it decreased to a level of 7.6% in 2012 (â€Å"The World Fact Book†). This proves that there are some substantial reasons for which the economic status of U.S. has