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U.S. government policies on economy - Essay Example

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U.S. government policies on economy
US Government Policies on Economy Administrations have a significant impact on the productivity performance of their nations as their policies tremendously design the economic environment. …
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U.S. government policies on economy

Download file to see previous pages... Student loans Student loans in America are a form of financial assistance that are supposed to be refunded, converse to other forms of financial assistance, for example, grants and loans. Student loans play an extremely significant role in the higher education of America. Approximately 20 million American citizens go to college every year. In America, a large part of higher education is financed by learners and their families and is perceived to be a venture instead of a basic human liberty. Consequently, students usually graduate with augmented debt levels. Also, student loans are divided into private student loans and federal loans (Wear Simmons, 2008). The Survey of Consumer Finances, 2010, indicates that 45% of all households have significant student-loan debts. This has a negative impact on the economy and productivity. Student loans have diminished the quality of my life. If I successfully meet the debt to income ratio, I may not have the capacity to reserve sufficient funds for a deposit. The Center for Responsible Lending estimates that average-income households take approximately 20 years to make sufficient savings for a 10% down payment. I may also take longer to save for a down payment due to additional financial requirements. There are a number of recommendations to address this issue. One is promote extensive adoption of the college scorecard by postsecondary-education institutes. Another recommendation is to establish a properly designed refunding program for students who borrow loans. It is also imperative to incorporate private student loans under bankruptcy protection. Free Trade Free trade is a policy by which the administration does not interfere with exports or discriminate against imports by enforcing subsidies to exports or tariffs to imports or quotas. In the view of comparative advantage, free trade policy allows trading partners equal advantages from trade of services and goods. Free trade has governed prices which are as a consequence of government intervention in the economy through supply restraints or price adjustments (Pugel, 2007). Free trade has improved the quality of my life. For instance, if tariffs on imported sugar are reduced in America, the American manufacturers will receive lower prices and profits while I and other consumers will spend less for an identical amount of sugar due to the similar decreased prices. It also avails numerous items with relative ease. Recommendations include developing additional programs, for example, the trade Adjustment Assistance program which assists those who lose their manufacturing positions due to foreign imports. Nations with dissimilar advantages should be permitted to capitalize on their differences and trade. Research and Development Industry finances two-thirds of America’s research and development. Nonetheless, significant researches are performed by research universities. The federal government developed the foundation for the Nation’s land grant institution through the Morrill Acts 4. The federal government support for research and development has developed into a changing and complex web. This has impacted the investment patterns, the economy, and productivity of America (National Science Board, 2008). Research and development has enhanced the quality of life. The fast change has helped me monitor and understand the position of the country in research and development competitiveness. It has also helped me to discover what essential information may be lacking that would give correct examination of the country’ ...Download file to see next pagesRead More
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