Aquil Muhammad, ECON 202


The US economy has been running exceptionally throughout the millennium. In 2003, that is when the recessions started. The US unemployment rate had slightly raised in two consecutive years, from 4.7% in 2001 to 5.8% in 2002 to 6% in 2003! George Bush was aware of the growing unemployment rate and was able to lower the deficit slowly to 5.5% in 2004, 5% in 2005, to 4.6% in 2006-07. In 2008, with the transferral of presidents caused unemployment to raise back up to 5.8%. In 2009, another recession began as the second consecutive declining year rose unemployment to a blistering 9.2% and to 9.6% in 2010, a US high. Using the John Keynes method, President Barack Obama was able to lower the US unemployment rate to 8.9% in 2011, 8% in 2012, 7.3% in 2013, 6.1% in 2014 and 5.2% in his final year. Throughout this 15 year stage beginning in 2000, US unemployment averaged 6.4%, 1.4% higher than the national average of 5%.

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If you're purchasing a pie from a bakery, and eggs and flour prices go up, leading to the price of the pie to go up. Those rising prices are called inflation. In the US, inflation is very common. Starting at 3.3% in 2000, inflation slowly fell to 2.8% in 2001 to 1.5% in 2002. Inflation rose again in 2003 rising to 2.2% and once again in 2004 and 2005, reaching 3.3%. In 2006 prices declined to 3.2% and again in 07 to 2.8%. In 2008, inflation rose again to 3.8%. In 2009, inflation dropped drastically as it fell to -0.3%, but the following year it rose again to 1.6%. In 2011, inflation rose to 3.1% and in 2012-2013 we fell into a recession as inflation declined consecutively for 2 years in a row down to 1.4% before rising again in 2014 up to 1.6%. Inflation then lowered again in 2015 to 0.11%. From 2000 to 2015, the US has had an average inflation rate of 2.1%. They are just 0.1% higher than their target rate of 2%.
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