The global economy was doing relatively well more than five years ago before being hit by an economic slowdown or recession. During this period, the US economy was at its peak, particularly in the fourth quarter of 2007. However, this was followed by a mild recession in early 2008, which eventually turned into a severe credit crisis globally about a year later. . Although only a few countries escaped economic recession, virtually no countries were able to avoid severe declines in stock markets (Norris, 2012). Some countries like the United States have experienced changes in their gross domestic product and stock markets. Having the best record among major developed countries, the United States was hit hard by the recession. As the economic downturn came to an end, America began the process of healing from the effects of the recession. This recovery process has been characterized by economic changes and fluctuations in various aspects, including interest rates, unemployment rate and inflation over the past five years. Current economic situation in the United States: Compared to five years ago, the American economy has been resilient as it continues to recover from the effects of the economic downturn and the ruins to better health. Currently, the nation's economy is experiencing federal budget cuts and higher payroll taxes. Additionally, economic growth is accelerating to the point that some economists predict that the five-year expansion could last longer (Klimansinska & Chandra, 2013). Signs of U.S. economic resilience are evident across the board, such as continued household spending, rebounding home sales, increased business investment and hiring, and the rise of the auto sector. .... middle of paper..... .me. On the other hand, tax cuts contribute to an increase in interest rates and inflation rates since people would have more money and would not be afraid to spend it. As a result, businesses and businesses will invest more in the economy as demand for products and services increases. In conclusion, the US economy has undergone enormous changes over the past five years, so much so that it is showing resilience. The current economic situation is characterized by slow growth as the country recovers from the effects of the 2008 economic downturn. However, inflation rates, interest rates and unemployment rates remain below average in terms of concerns the promotion of economic growth. Therefore, the government should consider adopting tax cuts and raising the minimum wage to try to encourage people to spend money to stimulate economic growth..