According to the financial leaders and researchers, one of the greatest issues causing problems in the US business market is the European debt crisis. It is weighing high on the businesses, and this again can lead to low employment rate. The economic turmoil in Europe has ripped the confidence of the US economy. Debt has got ingrained in the society so much so that it seems almost an impossibility to get out of it. So, we are now living within an economy the existence of which is based on debt.
Critical issues affecting business
One of the main problems is that the wealthier the country is, the greater is supposed to be the difficulty in maintaining the growth rate. This again affects the whole system in the country and businesses are no different too. The reports too prove the same fact. If we consider the stretch from 1990 to 1995, the lumber industry of the US was successfully able to maintain a growth rate of almost 3.5 percent. Yet, this was possible only after they had cut down 1.5 million trees in comparison to that of before. After this, the industry so as to be able to maintain the 3.5 percent growth rate in the stretch of 2005 to 2010, were required to cut down 2.5 million trees instead of the 1.5 million in the previous 5 years. Assuming such growth figures with regards to other businesses and industries, like those of the automobile industry, the fish stocks, and so on, the situation is no different. There is the huge difficulty of preserving the exponential growth with regards to the businesses.
So, clearly, the situation is one where we are no more able to produce as per our needs, to sustain ourselves. Just as we - the common people - are failing to earn what we require to sustain ourselves, the businesses too are failing to achieve the goals. Moreover, it is not only the economic environment that is affecting the business in the US on a negative basis. The US political environment too is having a negative effect on the businesses.
As per recent reports, the industry of defense is turning up the heat on the White House and the Congress, threatening to follow massive layoffs. They are going to actually do what they are claiming, if the government fails to call off the $500 billion of the 'automatic across-the-board budget cuts' with regards to the Pentagon spending. On the other hand, The National Association of Manufacturers too have warned that the 'across-the-board budget cuts' can result in the destruction of around 1 million jobs within that of 2014. This is going to hit the businesses hard and also the people of California, Virginia and Texas the most with each of these states losing more than even 100,000 jobs within 2014. In addition to these few states, some of the other states and the businesses there, which would also be hit hard are those of Florida, Georgia, Illinois, Maryland, North Carolina, New York, and Pennsylvania.
Kavin Matthews is a writer associated with http://www.debtconsolidationcare.com/. He loves helping people in financial distress and has written numerous financial articles for different websites too.
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