Causes of America's decline

Causes of America's decline

Causes of America's decline

The causes of decline in the most powerful county of the world America are kept under consideration to avoid disastrous affects by all types of people. Majority of the world’s population is interested in the economic value of America as the value of dollar is related to the currency of the world. Any fall in the financial value of dollar affects the rate of currency of other countries. Unfortunately a downfall of America is appearing before the world there is a decline in its industry. Foreign trade market, jobs and the prices of real estate, the financial crisis. All these give the reflection of the way to decline. There is a low amount of material production. Production is low as compared to the expenses. So the result will be decline of course. Real estate prices cannot be considered as the main reason of decline of America because either these prices are high or low does not affect the economy of the country.

It revolves inside the country among different people or in other words it is distributed from one person to other. The high price means that the buyer is paying much and the profit for the seller is large. On the other hand low price gives benefit to the buyer and low profit for the seller. it is the matter between 2 parties but the economy of the country is not affected. In America the prices of real estate has grown so quickly in the last years specially in the coastal regions these values are far surpassed from the original value which was in the past years. Some cases are like this as some bank is bankrupted and their employee and even bank executives found their amount after a period of time. Though the value of home at that time was 2 laces but with the passage of time it reached to the rate unto6 laces. So it is very difficult for them to purchase a real estate. Result is the increase of frustration for such people.

The causes of real estate decline in America are that a great difference is appearing between its production and expenses. This great difference is the main cause of success and failure of an estate in a competitive environment. The level of production of china is much greater as compared to the production rate of America. Though we know that the pay of labor is less in China. The minimum wage in New York for the labor is 7.14 dollar that clears that this is 10 times greater than the charges of labor in china. There is a high rent price for the space that is another reason for the costly production in America. While china is more capitalist and more free than America and other countries that’s why it is showing more production rate than other countries. The federal government wants to give us taxof60 dollars to stimulate the economy but we don’t like to spend it by thinking that if we spend it on gas it will go to Arabs. If we spend it on computer then it will go to India and if we spend it on fruits it would go to maxi cans and so on.