Economic Environment Essay Example

rate of 5. 8% was reported in January and increased to 6. 3% in June. From there till the end of the year there was a decreasing rate to 5. %. Unemployment leads to fewer Americans spending less money because they have less money to spend. The national income is something that has always mystified me. What surprises me even more though is that every year the national income has increased. In 1999, the National Income of the United States was $7,802,400,000,000 as reported by the Bureau of Economic Analysis.

Yes, that is right, almost eight trillion dollars. In 2000, the National Income was $8,429,700,000,000. In just one year, there was an increase on national income of $600 billion. How can this happen, one might ask.

There is no clear cut answer, but one guess is that since the unemployment rate decreased, there more money was earned which increased the national income. In 2001, the National Income was $8,724,100,000,000. There was a slight increase of about $300 billion, but relatively speaking not as much as the year before. Once again September 11 played a major role in the earning potential of Americans. This is most evident from the data found from the year 2002. There was an increase of only $157 billion.

It seems as though there was less personal income being earned.Each year, the amount of national income was only increasing by half that of the previous year. In 2003 things somewhat turned around. There was a reported $300 billion increase from the year 2002.

Call it high hopes, but the unemployment rate was 6. 3%, the highest in this time span. I am perplexed as to how

the nation, as a whole, can earn more money with an increasing unemployment rate. Oil prices have always been a major discussion in this country. While doing research I found some very interesting facts.

“In 1999, U. S. oil refiners made 22. 8 cents for every gallon of gasoline refined from crude oil.

By 2003, they were making 40. 8 cents for every gallon of gasoline refined, a 79% jump,” (Public Citizen). This was definitely an economic factor which influenced Americans decisions. Granted gas prices were not as high as they are today, but back then $2. 00 a gallon was unheard-of. “Since 2001, the five largest oil refining companies operating in America—ExxonMobil, Valero, ConocoPhillips, Shell and BP—have recorded $228 billion in profits” (Public Citizen).

I would say that investing in the oil and gas industry during that time period would have been an excellent idea.Around the early 2000’s, the major automobile manufacturers started the move to produce vehicles that had increased gas mileage. Perhaps they had some insight of what was going to happen in years to come. Gas prices determined whether a family took their summer vacation or drove across the country to see their favorite sports team. This in turn affected the amount of money people spent, which affected the price of everything. September 11, 2001 is a day that will always be remembered.

Because of the actions that those men took, the U. S. had to retaliate.Not only were those 2,752 victims (CNN) affected, but their families and the families of all of those who lost their lives. This prompted the War in Iraq, a war that has changed everything.

The economy was disrupted by this

action. As mentioned above, unemployment rates skyrocketed. There were unsettled views of most or all Americans which resulted in a disturbed economy. Another victim was thrown into the mix, soldiers. Their lives were changed forever. Also, the fact that there could be retaliation from those enemies in the war was another disturbing feeling which impacted emotions of all.

Fear of attacks at anytime on U. S. soil, put fear in Americans financial pockets. The economy from 1999-2003 was influenced by many factors. There is no doubt that the attack on the World Trade Center Towers of September 11 played a major role in this vast unemployment increase.

Even though there was a significant jump in the unemployment rate, the amount of increase in the national personal income was astonishing. Each year there was an increasing rate which would lead one to wonder if we were financially affected.Gasoline prices impacted the choices that Americans had to make which resulted in spending less money. The War in Iraq has left Americans unsettled about what direction the U. S. will take. All of these factors had an impact on the environmental economy of the United States from 1999-2003.

References

• Bureau of Economic Analysis, www. bea. gov Bureau of Labor Statistics Data, www.
• bls. gov CNN, Phil Hirschkorn, http://www. cnn. com/2003/US/Northeast/10/29/wtc. deaths/, Oct. 29, 2003
• Public Citizen, www.citizen. org; Tyson Slocum, September 5, 2005