6 biggest myths about the imminent collapse of the U.S. economy

Discussing the U.S. economy, are regularly confronted with the arguments on the fact that she will soon come to an end.

Such alarmist statements, of course, have a right to exist. It is true they are often based on established misconceptions and myths that are without an objective basis. For example, it is believed that the government regularly underestimates makrostatistiku in order not to give the information about the real state of things come to the surface. Still there is a rumor that the stock market is completely controlled by the Federal Reserve. These stories, of course, loud sound, but the evidence base is not enough, to say with certainty that it is so.

6 biggest myths about the danger lies in the U.S. economy

The first myth.

First the imaginary threat to the U.S. is seen by many in the U.S. government may one day be in the position of their Greek counterparts. Today this can be heard literally everywhere. Given the fact that the national debt now stepped over the mark of $ 16 trillion, of such statements will be even greater. But in fact the U.S. compared with Greece impossible. Even though the record value of debt, yields on U.S. bonds are now kept at a record low. In addition, the income share of the U.S. budget from tax deductions for debt service is also small.

We must not forget also that the Greek problem is also related to the lack of its own currency, which could be forced to make more competitive. But in countries such as the U.S., Japan and the UK, the presence of the national currency provides a great opportunity to manage them. However, even in the U.S. Congress are afraid that the United States will be a new Greece, and the planned "fiscal gap" - that other, as a result of these fears in an attempt to improve the situation in the economy.

The second myth.

The second threat is seen in the fact that the Fed has no opportunity to help the economy. The arguments in favor of this are the following facts: the Central Bank and so has reduced interest rates to zero, in the last two rounds of quantitative easing, the Fed's balance sheet has been blown, and eventually the U.S. economy has not been able to go on a path of sustained growth. Finally, it is often in the news headlines you can hear that Ben Bernanke is doing everything he can, and so do more, he does not under force.

However, this is not true, as the Fed remains untapped mass of levers that can be, in particular, to begin to break up the consumption and inflation, stimulating economic growth. However, the main obstacle here are the interests of big politics - that the authorities prevent active operations, primarily due to the upcoming presidential election.

The third myth.

There is a common misconception, according to which the high unemployment rate in the U.S. - is the result of the growth of technology in manufacturing, automation and globalization of the economy. Thus, the number of unemployed people can not fall sharply as long as a new generation grows up labor, "incarcerated" under the successful competition with automation.

However, the real data suggests otherwise. According to statistics, the sectors which are most cutting jobs in the crisis years - these are the areas that hired the most new workers in the post-crisis period. If the U.S. economy were structural factors, we could expect that the crisis will actively employ staff other industries, which, however, did not happen.

The fourth myth.

Among some analysts there is a perception that the debt crisis can not be overcome by increasing the debt. The logic in this case is quite clear - the supporters of this approach is seen in the increase in government debt similarity sinking deeper and deeper into debt. Indeed, if we compare the economy of each showing a household, it is obvious that more debt does not reduce the total amount of current.

However, this is not true, because the economy is very different from the economics of the household. During the crisis, the government stepped up debts in time, as economic actors to cut. Thus, the authorities sent new loans to support the private sector. It turns out that if the center of the crisis initially were debts of the private sector, it is useful to increase the state debt, helping to recover households.

The fifth myth.

Skeptics argue that the U.S. economy has become dependent on China, as it has the lion's share of the PRC government bonds of the U.S. government. In particular, at this point in the Republican Party, which scares the Americans that the Democrats have brought to America according to China.

In fact, nothing wrong with the fact that the U.S. national debt is in the hands of China - no. It is important to note that the Americans - one of the main consumers of Chinese goods. As a result, the PRC come dollars, which are directed to the purchase of treasury bills. As long as China wants to rely on the U.S. market, it will have to get back dollars and keep them in U.S. government bonds.

Myth Six.

The last myth lies in the fact that the U.S. government can not create jobs. However, there is enough to say that this is simply not true. Constantly launching new construction projects, educational institutions, and other budget areas, the government does not cease to create thousands of jobs across the country.