The economic policy in the United States is shaped by various factors, including historical events, political ideologies, and global economic trends. This page provides an overview of some key aspects of economic policy in the U.S.

Major Economic Policies

  • Fiscal Policy: This involves government spending and taxation. For instance, during economic downturns, the government may increase spending and lower taxes to stimulate the economy.
  • Monetary Policy: Managed by the Federal Reserve, this policy focuses on controlling inflation and ensuring economic stability through interest rate adjustments and the control of the money supply.
  • Trade Policy: This includes regulations and agreements that govern international trade. The U.S. has historically been a major player in shaping global trade policies.

Recent Developments

  • Tax Reform: In 2017, the U.S. passed a significant tax reform that lowered corporate tax rates and modified individual tax laws.
  • Trade Agreements: The U.S. has been actively renegotiating trade agreements, such as the North American Free Trade Agreement (NAFTA).

Key Indicators

  • GDP Growth: This is a measure of the overall economic activity in the country.
  • Unemployment Rate: This reflects the number of people who are actively seeking employment but cannot find it.
  • Inflation Rate: This measures the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Economic Growth Chart

For more information on economic policy, you can explore our Economic Policy Guide.