Government actions can save the U.S. from a Great Depression
Economists are unable to give a single and common statement regarding how long the slowdown will last but according to them in spite of constant corrosion of the American economy U.S is not going towards another Great Depression as government is exercising additional pains to relieve the impact of the mortgage crisis, credit crunch and unemployment. During the period of global slowdown government is playing a significant role to make over the loss and to solve out the problem.
For some years a lower standard of living for a large part of the U.S residents is predicted because of the extended depressed job market by Economic Policy Institute president. On the other hand some economists predicted gross domestic product rate will range between1 to 3 percent along with slow recovery till the second half of 2008.
Financial market and employment condition would be worsening if the Fed increases its benchmark rates too early. On Tuesday Federal announce that to control the instability in financial and employment condition it will hold its rate to 2 percent until the next year which give an helping hand to sagging U.S. economy. In total ten members of federal board member nine of them opted to hold the price and not to make any change which indicates that government authorities are directing there policies for the betterment of the economy as a whole.
