Monetary/Fiscal Policy
Government monetary and fiscal policies change all the time. These policies are
installed or fixed for the betterment of trade, inflation, unemployment, the
budget, or many other economic factors. In my opinion, it seems like two people
have the majority of the control when it comes to forming these policies. The
first person who influences these policies is President Bill Clinton who
proposes tax cuts, to balance the budget (Clinton's budget proposal should be
given to congress soon), minimum wage increases, or other legislation to improve
the economy. The second person who influences policy is the Federal Reserve
Board Chairman Alan Greenspan who can truly destroy our economy by a ...
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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 few months to quiet critics. The government takes steps
constantly to balance the budget; economists say 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
through 2002. These cuts are aimed at giving relief to middle class citizens.
A few of his other proposals include: $500.00 child tax credit, tax deduction
for post high school education, increasing the limits of individual retirement
accounts, and elimination of the capital gains tax. Despite these cuts, he
still believes a balanced budget will be achieved by the year 2002.
Greenspan, in an ...
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moaned about a slower Christmas buying season but
consumer spending showed a rise of 3.4%. Many analysts expected unfortunate
product overloads. It does not look like businesses will be stuck trying to
clear out their stock rooms. As for 1997, I get mixed reactions. Many
investors seem split about their predictions and are not too sure about the
future.
Where does Alan Greenspan, chairman of the Federal Reserve, stand on inflation?
As indicated earlier in this report, a few weeks ago, he urged Congress to
revamp the method by which the government measures inflation. He believes that
the consumer price index overweighs inflation by approximately one percent per
year. He pointed out ...
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Monetary/Fiscal Policy. (2005, August 5). Retrieved December 23, 2024, from http://www.essayworld.com/essays/Monetary-Fiscal-Policy/31155
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"Monetary/Fiscal Policy." Essayworld.com. August 5, 2005. Accessed December 23, 2024. http://www.essayworld.com/essays/Monetary-Fiscal-Policy/31155.
"Monetary/Fiscal Policy." Essayworld.com. August 5, 2005. Accessed December 23, 2024. http://www.essayworld.com/essays/Monetary-Fiscal-Policy/31155.
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