GDP (Gross Domestic Product) Is The Economic Growth Sustainable?

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GDP (Gross Domestic Product)
Introduction
Gross Domestic Product is an important feature of any economy as it measures a nation’s entire output for a particular year. The United States’ GDP has been on the rise over the last few years due to good economic measures. Although conditions of living have improved, the increase in GDP implies that a lot of fossil fuel has been used. Consequently, it has been suggested that the economy should be slowed since too much carbon dioxide in the atmosphere accelerates climate change. Other than that, U.S trade war with China implies that long-term increase in GDP is at risk. Therefore, this paper aims at describing whether the present economic growth is sustainable and whether the U.S should continue embracing the growth or slowdown the economy.
Is the economic growth sustainable?
The U.S economy may have seen robust growth recently, but with the nation experiencing almost full employment, the growth is not sustainable over the long run. A sustainable GDP rate is one that remains constant for a long time when the economy is in the expansion phase. For this to occur, the growth rate of the economy should be within 2% to 3% so that the unemployment and inflation are in balance (Modis, p 1560). Currently, customer and business spending combined with the national government huge expenditure have maintained the growth to a healthy rate. However, the trade tensions with China will surely affect the economy because at some point, the U.S will suffer in terms of imports and exports.
Although China-U.S trade war also affects the global economy, it is these two countries that suffer the most. From the trade war, both countries are threatening to hit back by formulating proportionate tariffs on the imports of each other. Although the tariffs have not been put in place, the hostility alone has already had devastating effects. Real fixed investment has already been curtailed and is displayed in reduced quantity of real exports, monetary strain, and falling share prices. On the other hand, a comparison to the global baseline level indicates that US imports have already fallen by 4.5% (Liu, p 331). In the long run, U.S multinational companies will turn inwards and move their production to end markets just to stay competitive. This will further reduce the imports and exports as other countries will be experiencing collateral damage. Therefore, the current boom in economy cannot be sustained if the U.S continues to engage in trade wars with China. However, there is a chance if the two countries stri...