Essay: Shopping Mall the American Economy

Pages: 8 (2525 words)  ·  Style: MLA  ·  Bibliography Sources: 5  ·  Topic: Economics  ·  Buy This Paper

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[. . .] This means that everyone wins when local businesses do well.

My opinion is that growth is promising in many regions of the country. One of those regions is Colorado. In Colorado Springs, the local economy is doing quite well in spite of the housing market downturn. "The Colorado Springs economy will grow between 2 and 3% this year amid an improving national job market, a growing national manufacturing sector," (Heilman). One of the local concerns in Colorado Springs is that the local economy is very much dependent on the military for its jobs sector. President Obama has been cutting military expenditures and will continue to do so, which is some concern for local residents. There is not yet evidence that the military cuts will affect this specific community in Colorado Springs. However, it is highly likely that the local residents in Colorado Springs will need to find other things to invest into in their local economies. Many troops are returning from their stations in Afghanistan, for example, and might need to find new entrepreneurial ways of making money and stimulating the local economy. I also believe that there is much that local economies cannot do anything about, such as international matters. For example, Heilman notes, "European debt problems could trigger a global recession." The United States economy might certainly be doing better than the fear-mongers believe. "National employment figures are improving, industrial production is looking better and…the number of housing permits is getting back to a more normal level," (cited by Heilman). Much of the blame lies abroad, and there is not much that Americans can do about what is happening in Europe. "Worsening debt problems in Greece, Spain and Italy are the biggest challenge facing the world economy and financial markets during the next year and are unlikely to be resolved quickly or without pain," (Heilman). Other international issues that are directly impacting the American economy include China. China has a housing market bubble to contend with. The country also has an export-driven economy, which could see major downturns as European spending power has weakened due to their recessions. Unfortunately, the problem is deeper than just being able to sell some goods abroad. As Livingston notes, "Stability in Europe over the sovereign debt crisis is one of the most important factors that will affect the economy next year. The ongoing crisis in Europe is also indirectly related to the housing market." The situation is complicated, but basically, banks are unwilling to lend money because they do not know what their capital requirements are, and are also uncertain of whether there will be a new international capital requirement. The term capital requirement simply refers to the stores of money a bank has in order to lend money. A larger store means it can lend more. Currently, banks are being thrifty and this means that fewer people in Europe as well as the United States can borrow for homes or business investments. One serious domestic economic problem is debt. Banks might start calling in their loans, which could prove disastrous for many Americans. "U.S. housing foreclosures likely will surge this year as lenders catch up on a backlog of defaulted loans delayed due to procedural issues," (Heilman). In fact, almost all areas of the American economy are showing signs of improvement except for real estate and related debt areas. Other debt areas include healthcare, as future Social Security and Medicare benefits will be putting the country in debt. However, there is measurable, "continuing private-sector job growth and investment in innovation," notes Heilman. Innovation is particularly important in stimulating the American economy because it means taking new products to market and stimulating consumer desire to spend. Moreover, Heilman points to a stabilized banking sector and a booming energy industry, which are helping the American economy to improve when it needs improvement the most.

In conclusion, the fears about the American economy are largely overblown. The real estate and debt problems have yet to be resolved and although some of the unemployment statistics look scary at the moment, these issues will improve as more and more people turn to shopping in their local market or shopping mall vs. shopping at Wal*Mart or Amazon.com. The most significant improvements to the economy have been made through consumers spending habits, shifting from stores and restaurants that invest their money outside the community vs. instide. It is important for Americans to pay attention to what they are buying, where it is made, how it arrived at the store, and who owns the store. These are the intelligent ways of improving the economy, rather than waiting for some magic wand to be waved to make everyone rich. Europe is a major issue, and the President of the United States only has jurisdiction over the domestic plans to help the economy. Therefore, it is important to understand Europe's role as well as China's role in the recession instead of blaming President Obama for all the current economic problems. The United States economy has proven to be strong and resilient and it will bounce back from the recession. It will do so not by supporting Wal*Mart, which does not put much money back into the local economy. As researchers and reporters show, the local economy can only benefit from local businesses. Consumer intelligence means that shopping at local businesses becomes a trend. In many places around the country, shoppers prefer to go to the farmer's market vs. A major department store, and this is proven in the number of people that visit American farmer's markets each year. American shoppers are going to buy more gifts this Christmas season at local stores, and will also start to see the increased growth in local tourism.

References

"Farmers market important to local economy, producers." Editorial in Greely Tribune.

Foss, Cassie. "Tourism pumps nearly half a billion into local economy." August 7, 2012.

Heilman, Wayne. "Forecast: Local economy will rebound a bit in 2012." The Gazette. January 19, 2012

Lee, Jason. "Shopping local benefits local economy more, new… [END OF PREVIEW]

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Shopping Mall the American Economy.  (2012, November 11).  Retrieved June 20, 2019, from https://www.essaytown.com/subjects/paper/shopping-mall-american-economy/2049230

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"Shopping Mall the American Economy."  Essaytown.com.  November 11, 2012.  Accessed June 20, 2019.
https://www.essaytown.com/subjects/paper/shopping-mall-american-economy/2049230.