Aminat Awosanya Professor Swarna Dutt June 12, 2013 Project 2A Cheer Up The article Cheer Up identifies the

weaknesses within the American economic system that have played a major part in the economic decline. Many developing countries, such as China are beginning to catch up in areas of education, infrastructure, international trade, productivity, and market size. The recession has impacted America with a slow economic growth, high unemployment, and a decline in investments. The concept of political differences, energy, education, innovation, immigration, infrastructure, and regulation are individually analyzed, as their significant roles in the economy are illustrated. Also, the lack of confidence in the economy is noted in this article alongside Americas large public debt of $17 trillion. The political differences has brought a sluggish response to solving the difficulties faced in the economy, such as the generous spending on Medicare and Medicaid, which is consuming a substantial amount of federal revenue and further fuelling American debt. Many budget cuts have to be made especially in the area of health care, this decision involves federal government, and so the recently occurring political difference have to be put aside as it affects the nations success. The USs dismal performance in education has affected Americas capacity to innovate. As the immigration system is tightening its borders, by denying visas to skilled foreigners, this has minimized the brain gain, and also affected domestic firms research and development in the long run. Although it appears that Americas economy is heading for the worst, with enough effort from federal government the economy can once again move towards economic growth and reforms.

Energy Recently there has been a boom in the gas and oil industry due to advanced innovation, their high demand for steel pipes has also boosted the productivity of the steel industry, This boom in the steel industry has brought about job opportunities, as firms such as Vallorec are expanding and spending on technology is also increasing USs aggregate demand. With the advance in research and development, more energy reserves are being tapped using new methods like fracking and directional drilling. The development in drilling of shale gas has brought many benefits to people as Pennsylvanians earned $1.2billion in royalties, due to allowing drilling to occur on their property. The royalties earned have helped any people improve their homes, or farmlands as well as farmers having the abilities to buy new tractors, or trucks increasing their productivity. More firms are beginning to expand to states such as Pittsburg and have provided many jobs to residents; also Pittsburg is also experiencing a brain gain as more are relocating due to the availability of jobs. Other businesses are also positively affected as they are also earning profit due to the increase in population and so the consumption of their products has also risen. The local economy is experiencing a boom of $14billion and also expected increase by $27billion in 2020. The boom of the energy industry has allowed for high tax revenue of nearly $3billion allowing for a higher government spending on infrastructure. The boom in energy has attracted many international investors in the energy, steel, and plastic sectors. With energy production at an all-time high many are benefiting from cheap gas, availability of jobs, and cheap electricity. The energy sector has allowed for an expansion and revival of other industries, as America has begun to gain on top oil

producing countries, such as Russia and Saudi Arabia. This boost has reduced the trade deficit by $70billion. Americas competitiveness is at an all-time high, with GDP increasing, higher quality products being manufactured leading to higher consumption. This appears as if America can revive itself and sink its competitor China, as more jobs are being brought back to America due to an increase in Chinese labor cost.