The fiscal policy entails controlling government spending and tax regime by a central government. In the US, fiscal policy is principally implemented at the federal level via acts of Congress as well as presidential actions. In the government sector, there are three optional tools in the employment of fiscal policy. These tools are government procurement, transfer payments, and taxation. The fiscal policy is founded on the assumption that aggregate expenditures, particularly business investment, are the key sources of business-cycle volatility.The objective of fiscal policy is to influence aggregate expenditures, and consequently the macro-economy, directly through government procurement or indirectly through taxation and transfer payments.
HOW THE CURRENT ECONOMY IS DOING AND CURRENT GDP GROWTH
In regard to the U.S. fiscal policy, the sluggish pace of economic recovery and fragile job creation, in spite of the broad margin of surplus capacity, argues for sustaining supportive fiscal and monetary policies in the near term. In reality, the expansionary fiscal policy played a vital role in forestalling a deeper recession. In reference to IMF analysis, the fiscal measure’s contribution to GDP growth was approximately 2% points in 2009 and an additional one percentage point in 2010. In the same period, the public held federal debt rose from approximately 36% of GDP in 2007 to approximately 62% of GDP in 2010. In the absence of remedial measures, and considering fundamental fiscal pressures predating the predicament, debt might reach approximately 95% of GDP by 2020. In the absence of policy adjustments, consequently the debt would continue rising. It is in this perspective that, the necessity for urgent measures to secure fiscal sustainability appear to be patently obvious(Romina, The Heritage Foundation 19/01/12).
CurrentState of Inflation in the US Economy.The reactions Federal Reserve System in response to the latest credit crisis have caused the creation of surplus reserves that are held by banks. If allowed to run freein the economy too fast, the excess reserves would certainly activate an extended interlude of fast rising prices. Asignificant new approach recently offered to the Federal Reserve System by Congress, is the capability to pay interest on the new surplus reserves. Hypothetically, this new tool ought to be adequate to facilitate the Federal Reserve System to restrain inflation, particularly when implemented used together with other supportive tools such as increasing the Federal funds rate. For that reason, the primarybasis of risk is that theory may backfire in practice, but there are no signs currently to indicate that the hypothesis is illogical.The outstanding risk is that the Federal Reserve System may underestimate the situation and linger too long to squeeze monetary conditions. Receding monetary accommodation to circumvent inflation,whilstpermitting the recovery to progressrapidly is always a complex exercise.A viewpoint that appears to be extensively held is that persistent economic weakness presents sustained inconsistency to inflationary pressure. Even in the perspective that an under-performing economy and a high unemployment rate present a level of indemnity against inflation over durationof time, that duration is not indefinite (Robert, S. EPI, 05/12/11).
Job Creation in the Economy. Unemploymentcontinues at 9.5%. Approximately 45.5% of the unemployed human resources have been jobless for in excess of six months. There are 25.8 million human resources who are either underemployed or unemployed. The labor force is essentiallylesser than at the beginning of the recession. This is another indicator of an underperforming economy. With a shortfall of 10.6 million jobs, an unemployment rate of 9.5%, and the private sector still unable to grant a robust upturn, Congressional failure to act in enacting appropriate policies that sustain job creation as well as economic growth, together with renewing comprehensive unemployment insurance and offering fiscal reprieve to the states, is unwarrantable (Alex Adrianson, NYT, 9/16/10).
Appropriate Fiscal Policies for the US Economy.Development of fiscal policy is a complex process. The US economy has experienced a squall of lowering rates and rising rates, market hurdles, increases and decreases in taxation. I would ponder as to where can we find the appropriate balance. Candidly, I do not believe there ought to be a balance. However, even if a balance was found, I believe that the economy would assume its course and unhinge the balance. In my opinion, the expenditure of the government from budget is the basis of the ripple effect that results in rising taxation, the rising debt, and influences each economic indicator. Increased taxation in my opinion, would affect the entire economy, particularly GDP.
Despite a fragile economy, the Obama Administration continues to enlarge the regulatory burden. From the inauguration of the Obama Administration 75 new key regulations, with costs in excess of $38 billion, have been implemented. WhilstObama acknowledges the necessity restrain regulation, the steps that the administration has taken have significantly backfired. The administration must take significant and real measures to restrain it. Simultaneously, Congress ought to establish critical institutions and mechanisms to guarantee that gratuitous and excessively expensive regulations are not forced on the economy.
In my opinion, the government ought to spend more on Unemployment Insurance benefit. This would provide a very constructive way to infuse money into the economy. This is because; the injected money would be spent instantaneously by long-term unemployed, cash-strapped workers. This spending would consequently create demand for services and goods. It is essential to note that goods and services are generated by workers, and hence this would generate additional jobs.
In my opinion, the expansionary fiscal policy is the most appropriate tool for the ailing economy, particularly in regard to job creation. The proponents on either side of the current debate may make strong arguments in relation to whether a particular policy would generate or wipe out jobs. It is essential to note that, only those policies that enhance the general demand for services and goods in the economy will radically lower the rates of unemployment.
It is essential to note that the government spending cannot stimulate economic growth nor can it stimulate job creation.The money that the government would redistribute in its fiscal stimulus mustin the first place originate from somewhere. Whether the government stimulus embodies current or the future taxes, the consequences would be the same. By drawing finances from the private sector in order to provide the same to preferred industries, the government diminishes long-term production as limited resources are relocated to less productive firms and sectors. Policymakers should institute the set of measures presented in this paper, and subsequently pursue supplementary reforms including restructuring of Medicare.
Alex Adrianson. “Spending Cuts Are Good For the Economy”, The New York Times, 16 Sept 2010. Web. 02 Feb.2012.
Robert, S. “Inflation: Whose Fault Anyway”, Economic Policy Institute, 05, Dec 2011. Web. 02 Feb 2012.
Romina Boccia. ‘New Stimulus Plan Same as the Old: Spend, Spend, Spend’, The Heritage Foundation, 19 Jan 2012. Web. 02 Feb. 2012.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!