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Before President Bush left the office, he left behind a huge burden on the Americans economy that was used to finance two very expensive wars in the history of America. The debt runs for a period of years until 2011. This is what Obama government had to first deal with when he took over office in 2009. Sound economic policies guide a government to economic growth and expansion. In includes the changes made by the national budget that alters spending and taxes affecting the economy. Fiscal policies play an important role in driving the Americans economy especially after the great depression when the government decided to take a proactive role in guiding US economic affairs. The role of a fiscal policy is to influence macroeconomic productivity levels by increasing or reducing taxes and public spending. Each policy is distinct depending on what the government wants to correct or attain. For instance, a slow economy has high levels of employment, low levels of consumer spending, and less business. Here, the government will fuel it by reducing the levels of taxation and increase the public spending. More money in circulation will increase consumer spending, boost businesses, and increase employment levels.
However, the effects of fiscal policies differ with different economies. This is because in different economies one class or various classes of individuals are affected by a move to cut taxes or increase spending. For instance, in America, arguably only a small percentage pays taxes, which is about one percent of the population. Therefore, a move to increase tax or reduce tax will only affect a small percentage of the population. It is also unknown to what extent a government should get involved in an economy to get it moving, which leaves policy makers on a hanging balance.
After Obama joined government, a fiscal policy of its kind was adopted in America to curb
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The Determinants of the Level of Interest Rates In the UK And How the Changes in Interest Rate Affect Economic Growth
Monetary policy involves alterations in the interest base rates thus influencing growth rate of aggregate demand, supply of money and ultimately the fluctuation of prices.
This gives a clear call to the political-economic policymakers to cater the stranding business crisis of all sorts. Considering the International monetary fund (IMF) recent meetings regarding the international debt crisis due to the developed economies of the world such as US and Europe, it is easier to note that the bigger spectrum of international business is not stable at the moment.
Economic outcomes strappingly depend on policy choices. Policy decisions do not depend on social planners who explain the extension of social well-being as their choices. Many economic models that were made in the past failed to elucidate what is happening in the real world because they ignore politics.
For several decades, looking at another human being in a worthless way has been conventional. Nevertheless, it is only recently that human beings have taken the trouble to look at discrimination as a problem in a number of areas. There is no society which has been spared from the menace of discrimination.
Recently China has faced slowdown due to economic slowdown in the world following the crisis of the global economic slowdown. Still the country has achieved GDP growth rate of more than 6 percent in the years following the crisis. This report will take a look at the slowdown of China and the causes of such slowdown.
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In light of this debate, it is evident that the only party on the receiving end is the American worker.
A look into the gap between the rich and the poor reveals the need for improved minimum wage. There exists a critical gap
Subsequently, it can be asserted that the objective of this particular assignment is to examine the issue of inflation on the US rental properties, which is adversely affecting the micro and macro-economic environment of the US.