1
The key objective of the article is to reflect on the increase in economic uncertainty in the current US system with a reference to the historical perspective. This has had a significant adverse impact on a section of people who have been left unemployed and are not able to fully participate in economic growth. Additionally, the article highlights how the US domestic economy in the present has become quite fragile owing to the imperialistic ambitions thereby leading to inefficient usage of available resources. In this regards, the article also indicates how this issue can be resolved if the US shifts it focus to rebuilding infrastructure and ensuring sustainable domestic growth (McCormick, 2012).
2
“Zombie metaphor” which has been extensively used in the given article pertains to a situation when the economy has been performing well owing to which there is increase in unemployment and income based inequality. As a result, there are people who are not able to fulfill their aspirations owing to which they do not contribute to economic growth (McCormick, 2012). Potentially the metaphor includes people who are discouraged and thereby stop pursuing employment search and hence become a liability for economic growth as state support needs to be extended. This phenomenon is reduced when economy is performing well since the unemployment is reduced and hence higher disposable income is available for people (Mankiw, 2015).
3
Zombie is a popular metaphor since there has been an increase in the economic uncertainty owing to rise in incidence of slowdowns. One of the key reasons of the same is the imperialistic desires of US which diverts a host of economic resources. As a result, the likelihood of economic shock has significantly increased (McCormick, 2012). In such a volatile economic environment, there is rise in economic inequality and the poor are hit quite hard owing to increasing sense of helplessness for a host of people who are not able to derive requisite income. In the process, the economy as a whole also tends to suffer (McConnell, Brue & Flynn, 2014).
4
The solution focused tends to focus on giving up on the imperialistic ambitions and instead focusing on rebuilding on US economy by focusing on infrastructure building coupled with creating economic opportunities for all. Additionally, we need to focus on environmental implications of our economic growth so that sustainability is not compromised (McCormick, 2012). Yes, I think this is achievable as currently a host of resources are deployed in safeguarding the “strategic interests” of US so that it can continue with its military hegemony. If a majority of these resources can be diverted to the domestic economic, then it would provide a much needed boost to the economy.
5
This article clearly highlights that the real cost of economic shocks and volatility is borne by the poor. This is because they are the most vulnerable owing to which are easily rendered unemployed and have to depend on social support. Additionally, the associated helplessness associated with changing economic cycles could cause immense misery and thereby lower productivity in the long run (McCormick, 2012). This arises as there is lack of a definite career progression caused by frequent economic disruptions and hence economic progress becomes illusive. The net result is that the poor people have to struggle to garner enough resources for sustaining themselves (Dombusch, Fischer & Startz, 2015). Hence, the article clearly highlights the gravity of the problem of economic inequality in US context.
References
Dombusch, R., Fischer, S. & Startz, R. (2015).Macroeconomics (10thed.). New York: McGraw Hill Publications
Mankiw, G. (2015). Principles of Macroeconomics (6th ed.). London: Cengage Learning
McConnell, C., Brue, S. & Flynn, S. (2014). Macroeconomics: Principles, Problems, & Policies (20thed.). New York: McGraw Hill Publications
McCormick, P. (2012), Zombie Economics, Retrieved from https://www.uscatholic.org/july2012
