Monetary/Fiscal Policy

Monetary/Fiscal Policy Government monetary and fiscal policies salmagundi all the time. These policies ar installed or fixed for the betterment of trade, inflation, unemployment, the calculate, or some other economic factors. In my opinion, it seems like two people establish the majority of the control when it comes to forming these policies. The first person who influences these policies is President bar Clinton who proposes tax revenue cuts, to balance the budget (Clintons budget proposal should be given up to congress soon), minimum wage increases, or other order to improve the economy. The second person who influences policy is the Federal Reserve Board electric chair Alan Greenspan who can truly destroy our economy by a slight miscalculation. Greenspan is so influential that the mere speculation of his making a move can cause panic buying or selling in the open markets. Alan Greenspan has the power to increase or decrease the money supply by changing reserve requirements, by changing the discount rate, or by buying or selling U.S. Securities over the open market. The major governmental paradox is trying to balance the budget. The United States government is soon in debt $5,262,697,717,000 as of February 7. This number grows about $10,000 per second(see charts 2,3,and 7).

President Clinton, Chairman Greenspan, and Congress are all working towards a balanced budget by the year 2002. As many economists explain , the need is for legislation to keep the budget balanced for years to come and not look for a quick fix to balance the budget for only a some months to quiet critics. The government takes steps constantly to balance the budget; economists scan that the chances of inking a deal this year are better than ever. President Clinton has currently proposed an offer of $100 billion in tax cuts done 2002. These cuts are aimed at giving relief to middle twelvemonth citizens. A few of his other proposals include: $500.00 child tax credit, tax deduction for post high school... If you want to get a full essay, order it on our website: Orderessay

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