The United States Economy

The United States economy is slowly beginning to recess. According to The New York Times, the US economy was predicted to “produce $14 trillion worth of goods and services in 2007.” Also in 2007, the American economy slowed down greatly. This was due mostly to the real-estate slump and financial problems (Leonhardt 1). The slowing economy in 2007 has extended into the new year, and has brought a slew of problems to attention, particularly oil prices and the mortgage crisis.

Recent reports from the OPEC say that the price of oil fell to just under $90 a barrel, however the demand for oil continues to increase (Reuters 1). The price of oil, argues Dr. Michael Babula on his website, has forced companies to increase their resource prices. In addition, according to the New York Times, the rising prices in oil is also causing rising costs for food. Other sources such as cooking oil have also increased in price, causing shortages and costly food (Bradsher 1). The cost of oil needs to be brought under control.

I agree with Dr. Babula when it comes to the economy of our country. Whereas opposing candidates Albert Wynn and Donna Edwards have not mentioned the economy as a significant issue facing our country on their websites, Dr. Babula presents a clear plan. Resources costs need to decrease, and the United States has to search out alternative energy sources in order to achieve this. The United States can use alternate sources of energy, such as hydrogen that will decrease the dependence on oil.

The mortgage crisis also needs to be taken into account. Candidate Donna Edwards often mentions the scandal and has received money for her campaign from Lawrence Ottinger, the Manager of Policy and Leadership Development at Fannie Mae. Fannie Mae, a shareholder-owned mortgage company, was recently accused by the Washington Post as committing “extensive financial fraud” (“Study Finds ‘Extensive’ Fraud at Fannie Mae” 1). The executives involved in the scandal were not convicted and instead, Fannie Mae agreed to pay $400 million. Americans continue to be the victims of the mortgage company’s decisions and actions, and something needs to be done to prevent this and to prevent more mortgage company foreclosures.

It is important for the United States to be able to control their policies and responsibilities concerning the financial future of the country. The United States needs to develop a better fiscal policy to spur the economy and attempt to turn the looming recession around. Dr. Babula mentions this on his website, and agrees the trading of Chinese currency will be important, however I think this should be considered as well as alternative policies, such as changing the tax system and working on deficit reductions.

Our country needs to see a positive turn in the economy, and quickly. This can be done by seeking other alternatives to oil. In addition, if policies were taken under control and managed effectively, the financial state of the country will be better. If things are not changed, the United States will experience a recession.

Works Cited

Bradsher, Keith. “A New, Global Oil Quandary: Costly Fuel Means Costly Calories.” The New York Times. 19 Jan. 2008.

Day, Kathleen. “Study Finds ‘Extensive’ Fraud at Fannie Mae.” The Washington Post.com. 24 May 2006. http://www.washingtonpost.com/wp-dyn/content/article/2006/05/23/AR2006052300184.html

Leonhardt, David. “United States Economy.” The New York Times. 11 Dec. 2007. < scp="1-spot&sq=">

Reuters. “OPEC: US Recession Fears Cloud Oil Demand Outlook.” The New York Times. 22 Jan. 2008. http://www.nytimes.com/reuters/business/business-opec-oil-outlook.html?_r=1&scp=8&sq=&oref=slogin

Babula, Michael Dr. Dr. Michael Babula For Congress 2008. 18-22 Jan. 2008