Economists’ opinions regarding the future of American capitalism economy is presently much divided than it was in the last ten years. The most recent survey from IMF titled World Economic Outlook; projects that he united states will achieve economic growth rate of about 2% in 2009, explaining that the economic meltdown in America experienced this year (2008) will ease come next year. Daianu (2008) also quoted Glenn Hubbard an economic adviser in the government who asserted that though there has been sharp decline in the stock market together with a reduction in consumption, it is possible that the market will recover in the new future.
However, other economists have a different viewpoint regarding the economic situation of America. Hiatt (2007) quotes an economist Martin Wolf, describing the projections from the IMF as being purely complacency. In study carried out by the Wall street Journal on global economy with emphasis on American economy, it established that many of those economist who were projecting that the economy of American will grow in following year, were in deed the same economist who had in the past denied previous that the USA was experiencing a crisis at the beginning of the year Wall street Journal (2008).
The study concluded that, there were probably wrong at that moment, and they are possibly wrong this time again. The finally remarks given by the study is that, America’s economic slump is not ending that soon. And the analysis of the stock market among the major markets across the world is apparent. Looking at the end of 2001, the share prices among key stock markets have plummeted in all big capitalist economies. It is estimated that the declined has been more than 50 \% in USA, 30% in Germany, while prices in Japan has gone down by 25%, in France is 40% and in UK it is estimated at 35%.
This trend as been the same in what is termed as the emerging markets, in these markets it is estimated that stock prices has fallen between 18-25%. Socialist attempting to explain what is going on in capitalism system of America has two main questions about the issue. The first question is, how was it possible for these disagreements about the future of capitalist American arise, and two, which of these tow varying viewpoints is the right one? Marxism can be able to assist us in answering these two questions, in a manner that the two varying options capable of doing.
The arguments of those believing that America’s economic future is bright, are based on the developments of the economy that happened after the 2001 September 11 terrorist attack with was coupled by corporate scandals like the Enron, Tyco and WorldCom. They point out that despite all that, the USA economy was able to grow by more than 2% in the subsequent years. They further assert that, inflation was able to be maintained at a low rate and the dollar remained strong, even to the moment, the argument is that, the dollar is still relatively strong though it has fallen against the euro; it is still steady against the Japanese yen.
More so, some observers like Harrison (2005) emphasize that the productivity of America through its manpower has continued to grow gradually. They assert that developments that have been made in information technology, together with new economy have presented the flexibility required for the future USA economy to surmount depression quicker than previously. The projection is that these developments will result in a rekindling of the USA economy, this will subsequently encourage America to export and will then enable the America economy to restart the course followed in the 1990s when the economy was doing well.
Accordingly the puncturing of the stock market bubble that has been will be able to be recovered. However, the pessimists who have different viewpoint of the US economy, and whose perception is that the US capitalist economy would not grow in positive is future, is based on two key factors. One factor that they point out is the way the US economy decline is synchronized with a slowdown across the world.