. It is no doubt that the political factors of the USA possess a significant amount of sovereignty in the world economy. The political environment of the economy had been observed to witness inconsistency for the preceding few years. Notably, the downfall of white supremacists in the economy can be observed as the most important revolution that ever took place in the post-modern era (U.S. Department of Homeland Security, 2009).

Currently, the political environment can be assumed to be steady from a general viewpoint. However, with an in-depth perspective, conflicts can be observed in terms of fiscal challenges and the formation of effectual monetary policies (Paul, 2011).

It is quite noteworthy that the economy is facing a challenge of widening fiscal deficit as an effect of the recent economic downturn. In order to prevail over the obstruction of growth, the political leaders are intending to lessen the deficit amounts through budget cuts. This, in turn, is fuelling up conflicts and instability in the political environment of the USA (Jackson, 2011).

Similar to other developed economies, the US economy was also strongly affected by the recent economic downturn. Over the last consecutive years, i.e. from the pre-recessionary period to the current year, the economy has faced a highly volatile environment with declining GDP and employment rates. However, the forecasts reveal that the unemployment rate which is further likely to be affected conversely by the up-surging inflationary rates (Tilton, 2011).

For instance, the current actual GDP of the economy is recorded&nbsp.to be 1.8% which is further identified as significantly less than the quarterly average growth rate, i.e. 3.3% (Trading Economics, 2011).&nbsp.Furthermore, experts state that the GDP is likely to become steady in the subsequent five years providing opportunities to small-size enterprises. The fluctuations of economic growth can be observed from the diagram represented below (Tilton, 2011).