The U.S. economy got another blow from the European crisis this time in the form of budget cuts. The British PM’s announcement of the extreme cut back in the form of government spending along with the German austerity plan detains, caused the U.S. economy to feel the shock waves.
This move is going to reduce the creation of new jobs in America and will have a negative effect on the already snailing U.S. economy. This will have a similar effect on the economy of the rest of the world. The British Prime Minister David Cameron expressed his concerns over the consequences of the debt crisis in Greece, Spain and other similar European economies. Already the European debt crisis has had a profound effect on U.S. and global stocks and plunging stocks are a common new since. This will lead to American and global customers to cut back on their spending in anticipation of another recession.
The German austerity plans will have an sudden impact on the imports and exports of the American economy since Germany being an export powerhouse. And after Germany, Francs is rumored to follow suit with its own austerity plans that will further effect American and global economies.