The U.S. economy has been slowly growing since the spring of 1991, growth increased in 1997 when real gross domestic product rose 3.9 percent from an increase of 2.8 percent in 1996. At the same time inflation in 1997 fell to 2.3 percent decreasing the cost of living. “Payroll jobs rose from 121.14 million in January to 124.29 million in December and the national unemployment rate declined over the year by .7%”.(Heintz,2000)
This combination of events was good news for the businesses and the general public because it increased wealth and lowered prices. “On July 2,1997 Thailand started a crisis in Asia which effected U.S. exports to the region. U.S. exports to Asia represent 30% of total exports but were cut in half to 13.4% in 1997. The interest declines offset some of the drag on the American economy from the reduced exports by concentration on construction and real estate”. (Brenner,2003)
Asia crisis was a threat to the U.S. economy but a strong dollar and the reduced commodity demand helped to keep the low inflation period. In 1998 the economy experienced further acceleration growth, unemployment decreased faster to lows not seen in 20 years and the price index stayed the same. Falling interest rates and oil prices encouraged consumers.
Economists still kept a close eye on the unfolding events in Asia. In 1999 U.S. economy will slow due to weak markets around the world consumer spending will decrease and businesses will slow down their investing. “Although inflation has not changed the decline in oil prices and the rising dollar will fade. Nations GDP is excepted to slow growth near 2% and the world economy possibly will stabilize. Oregon’s Economy Just like the rest of the county Oregon has been booming since early 90’s but came to a moderate pace in 1997”. (Davis ,2000)....................
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