Government, Economics, and Fiscal Policy Essay - 1271 Words

The statement â€Å"I want my job back!† has become a war cry for the masses. Great amounts of money are being dumped into the economy, but with little to no return. The system is failing and people are becoming restless. In light of the recent â€Å"Occupy Wall Street† protests the question begs to be answered, â€Å"Are we going to get our jobs back?† With so many politicians declaring they have the answers, how can we find the correct path to follow? Something is missing from both plans, but first the plans should be discussed before criticism can begin. It is time for the government to return to a Laissez-faire â€Å"Hands Off!† economy. On one side you have President Obama who declares that higher taxes on the wealthy and large corporations will solve†¦show more content†¦This bill seems to do a lot of good, it creates jobs. But it does so much more. The American Jobs Act of 2011will decrease the national deficit by $6 billion dollars over the next ten years. â€Å"That estimated deficit reduction of $6 billion over the coming decade is the net effect of $447 billion in additional spending and tax cuts† (Congressional Budget Office). Why so little return for the amount of money being spent? Almost a half trillion dollars are being spent and only 6 billion dollars are being reduced from the deficit. This bill is leaving something out. Americans know the value of a balanced budget. If no more money is spent than brought in the creditors do not bother to call. But for those who spend more than they make it is not such an easy process. First many phone calls begin as creditors begin to look for their money. If no money can be paid back the family must declare bankruptcy. If a family cannot live outside its means than why should the government? If a corporation cannot operate within its means it soon folds. So why should the government try? It is for our protection and betterment that we find a way to lower the deficit and still allow jobs to be created. In the current economic storm businesses are weary of hiring because they have been required to follow unnecessary regulations. The cost of hiring a new $60,000/yr IT employee is estimated to be approximately $150,000 (Monte). TheShow MoreRelatedTwo Of The Most Implemented Policies Government Use To Achieve Economic Growth Are Monetary Policy And Fiscal Policy1667 Words   |  7 Pagesthe Kauffman Foundation, explain in a interview with the author: â€Å"The single most important contributor to a nation’s economic growth is the number of startups that grow to a billion dollars in revenue within 20 years.† The statement made by Carl Schramm suggested that the increase of start ups, is the most important contributor to a nation economic growth. (Karlgraard,2010) Economic growth is an increase in of the Real Gross Domestic Product (Real GDP). And it is mainly cause by two factors, anRead MoreEssay on Fiscal Policy718 Words   |  3 Pages Fiscal Policy can be explained in many ways, for example. Fiscal policy is the use of the government budget to affect an economy. When the government decides on the taxes that it collects, the transfer payments it gives out, or the goods and services that it purchases, it is engaging in fiscal policy. The primary economic impact of any change in the government budget is felt by particular groups—a tax cut for families with children, for example, raises the disposable income of such families. DiscussionsRead MoreFiscal Policy And Fiscal Policies1560 Words   |  7 PagesFiscal Policy Brooks (2012) defines that fiscal policy is adjusting government revenue and spending in order to influence the direction of the economy and meet the economic goals of the country. The two main tools in fiscal policy are taxes and expenditure. Fiscal policy is set by the government and parliament and often used a combination with monetary policy, which set by Reserve Bank of Australia as an example. Furthermore, this essay discusses the Australian government fiscal policies during theRead MoreEconomic Development Of A Country1027 Words   |  5 Pagesinvolved. We cannot get rid of economic if we want to talk about development. The term economics can be defined as the science of how people and societies deal with their limited resources to satisfy their unlimited wants (Miller, 2012). The development of a country is based on many characteristics, such as the average income per capita, level of education, the death rate every year, the population health, and many more, but the most im portant characteristic is the economic activity of a country, thereforeRead MoreDo Fiscal and Monetary Policy Stimulate the Economy? Essays1467 Words   |  6 Pages Constant changes in market economies make it nearly impossible to maintain a constant level of economic activity. Fluctuations are the heart of market economies; market economies cannot exist without them. These fluctuations can be described as the business cycle, and like every cycle there are a series of events that construct these phases. The business cycle consists of three phases, expansion (until peak point is reached), a decreasing point into recession, and a rebound from recession to recoveryRead MoreFiscal Policy And Fiscal Policies1193 Words   |  5 Pagesto increasing economic output. Fiscal policy is one of the tools often used to realise these goals and create financial stability. There are two ways in which fiscal policy can be implemented, either a contractionary fiscal policy, or an expansionary fiscal policy, which I will explore in this assignment. The aim of an expansionary fiscal policy is to raise expenditure, whereby economic output and household income will also increase. This is done by altering the flow of government expenditure andRead MoreFiscal Policy as an Economic Stabilization Measure1604 Words   |  7 PagesFISCAL POLICY AS AN ECONOMIC STABILIZATION MEASURE Fiscal Policy refers to the various decisions undertaken by the government regarding public expenditures and revenue. There are a large number of sub-policies that are encompassed by the fiscal system. But all the policies can be broadly categorized as being either ‘Public Expenditure’ or ‘Public Revenue’. It can be said that the fiscal policy is a direct government intervention in the economic processes of an economy. The fiscal policyRead MoreMonetary Policy And Fiscal Policy1178 Words   |  5 Pagesdescribed as a mixed economy. A mixed economy is when the government is not in charge of the economy, but is still majorly involved in economic decisions. The government plays a critical role in providing economic conditions where the marketplace can function effectively. Any decisions made are in order to either maintain the market or stabilize the economy during a financial crisis. Monetary policy and fiscal policy are two tools by which government uses to guide the economy. Sometimes the economy isRead MoreThe Keynesian Fiscal Policy Solution Aggregate Demand1103 Words   |  5 PagesThe Keynesian Fiscal Policy Solution Aggregate Demand Problems The 1920’s witnessed a rise of a new economic policy which had not yet been seen prior to the great depression. Before the great depression, the widely accepted economic policy which was implemented and practiced around the world was called Natural Economics. Natural Economics was a fiscal policy that embodied the idea that the economy would eventually take care of itself and run freely without the government’s influence. However, theRead MoreExpansionary Policy1254 Words   |  6 PagesExpansionary Fiscal and Monetary Policies Macroeconomics: ECO 203 Professor Charles Aki September 1, 2013 The US economy has seen some detrimental changes over the past decade. These changes resulted in unsubstantial unemployment rates, fluctuating interest rates, unstable GDP, and an increase in taxes. The federal government has an obligation to citizens to respond to the changes in the economy that affect each household. Expansionary Fiscal and Monetary Policies are economic policies used by the