Its economy is balanced among financial services, distribution, consumer goods, biomedical technology, manufacturing, information services, and other industries (The Columbia Encyclopedia, 2004). As the national economy improves, so does the Jacksonville economy. In this light, this paper compares the citys economy with the national economy in the last few years. The comparison is in terms of economic growth, unemployment rate, monetary policies, and Federal reserve system. This paper also attempts to explain the similarities and differences.
Economic Growth The United States is the most powerful economy in the world, with a per capita GDP of $43,500. In the same year, the country had a purchasing power parity of $13. 13 trillion, official exchange rate of $13. 21 trillion, and real growth rate of 3. 2% (The World Fact Book, 2007). In 2006, Jacksonville had $33,419. 31 GDP per capita. At the time of the 2000 census, the per capita income in Jacksonville was $20,337, compared with $21,587 nationally (US Census Bureau, 2000).
In the same year, the median household income in Jacksonville was $40,316, and $41,994 nationally. In 2005, the median household income in the city was $40,316, and $42,433 in Florida. The American economy is immense. It has about 295 million consumers and houses over 20 million businesses. American consumers purchase trillions of goods and services every year, and businesses invest over a trillion dollars more for factories, facilities, and equipments.
In addition to spending by private households and businesses, government agencies at all levels federal, state, and local alo spends huge amount of money annually. The above figures show that Jacksonvilles GDP per capita (a major indicator of economic growth) is significantly lower compared to the the national average. However, compared to other cities in the US, the economic growth in Jacksonville is higher. Development plans and projects largely contribute to the improvement of Jacksonvilles economic growth.
For example, the Better Jacksonville Plan aims to increase the sales tax by a half-cent to raise $2. 25 billion over 30 years to fund road improvements, environmental clean-up and conservation, the Northwest Jacksonville Economic Development Fund, and the construction of new public facilities downtown (Jacksonville: Economy, 2007). Unemployment Rate In the last five years, unemployment rate in Jacksonville is generally lower than the national average. In 2002, the national and the city rate were equal at 5. 8%.
In 2003, the unemployment rate in Jacksonville was lower by 0. 6%. The difference narrowed by 0. 1% in the following year. In 2005, the unemployment rate in Jacksonville was 3. 9%, way lower than the national rate of 5. 1%. In 2006, the national unemployment rate declined to 4. 6%; the rate in the city, on the other hand, declined to 3. 4% (Bureau of Labor Statistics, 2007). The data shows that, the national unemployment rate has declined by 1. 2% in the past five years; whereas the decline in the number of unemployed citizens in Jacksonville is more radical, with a 2.
4% decrease. According to the data gathered by the Bureau of Labor Statistics (2007), Jacksonville is one of the major cities in the US with low unemployment rate. In 2002, the city ranked 13th. In the following years (2003 and 2004), Jacksonville ranked 9th. The ranking improved in 2005 when the city was positioned in 4th, behind Honolulu, Virginia Beach, and Mesa City. In 2006, the city was ranked 5th behind Honolulu, Virginia Beach, Omaha City, and Mesa City.
The employment sector in Jacksonville is thriving because, while many companies are maintianing current staff levels, many others are adding workers to their organization. Currently, the citys employment growth rate of 2. 1% is higher than the statewide growth rate of 1. 6% in May, and the national employment growth rate of 1. 4% (Bureau of Labor Statistics, 2007). Only few Jacksonville companies are planning job cuts. ndeed, the employment sector in Jacksonville appears to be very strong.