Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
ECONOMIC INSTABILITY VS. FISCAL POLICY
Fiscal Policy vs. Economic Instability Indeed, news just came out that the United States economy contracted by nearly three percent in the first quarter of 2014. Even so, there are things that government can do, and largely has not been doing, to make things smoother and more expedient in terms of eliminating or preventing economic stability (EconLib, 2014).
Much has been stated and asserted about what governments can do to inhibit or create economic growth. Indeed, many politicians campaign and assert that they can create jobs and economic growth. Others suggest that such statements are pure folly and are no indicative of reality. The truth about governments and their ability to start or stop economic growth is somewhere in the middle. While governments passing and enforcing fiscal policy can encourage or allow for growth, they cannot organically create it but can absolutely hurt the economies they say they want to save if they act the wrong ways.
If the last five years in the United States has proven anything, it would be that keeping interest rates extremely low and offering piecemeal tax breaks alone are not enough to fix the economic travails and problems that were laid bare during the Great...
...
One example of fiscal and similar policy creating problems is the recent spate of piecemeal extensions of the budget ceiling and budget impasses over the last few years. That issue was solved with a long-term solution that lasts about two years into the future but for a while deals had to be struck every three to six months so that the government could just meet their obligations for budgets and spending that was already in force and agreed upon. The reason this led to economic instability was in large part because the taxation playing field was not defined all that far into the future and some people were demanding higher taxes. To a lesser extent, but certainly not insignificant, have been the concern about…
References
EconLib. (2014, June 25). Fiscal Policy. The Concise Encyclopedia of Economics.
Retrieved June 25, 2014, from http://www.econlib.org/library/Enc/FiscalPolicy.html
Hepler, L. (2013, October 25). California economic forecast: Obamacare, state debt, federal politics, taxes, pension shortfall - Silicon Valley Business Journal. Silicon Valley Business Journal. Retrieved June 25, 2014, from http://www.bizjournals.com/sanjose/news/2013/10/25/five-things-to-watch-for-in-the.html?page=all
O'Leary, A., & Selbin, J. (2013, September 13). Obamacare: California can use the ACA
25, 2014, from http://www.mercurynews.com/opinion/ci_24053894/obamacare-california-can-use-aca-improve-its-economy
Economic growth can be described as a measure through which the output of an entire economy grows or increases. Since this growth may be national, regional, or global, economic growth does not necessarily refer to growth in sales of any single industry or business. Economic growth is usually determined through various factors such as the Gross Domestic Product or Gross National Product. These measures of determining economic growth are considered
The private sector tends to be against public sector funding, since it represents a basic redistribution of wealth from the ground up. Private sector economics has always held that the trickle-down economic models work best, where businesses and the very rich are given tax cuts and stimulus that is supposed to trickle down to the workers and the economy through renewed monetary business incentives. However, this form of economics,
This developed later into selling feeder stock to U.S. where the costs of feed were less. In terms of agriculture, Canada does not have a suitable climate to grow corn, and during the 1890s there was the change in cultivation through the use of a new variety of wheat called 'red fyfe' that has a short growing season. This also provided better prices for the farmers and was suited
Economic Growth Lead Healthier Happier Societies Weather economic growth leads to healthier and happier societies or not? It is the question of current essay. Usually economic growth and development brings prosperity and wellness in the lives of individuals by improving their life style. With the economic growth of a country the quality of life improves as people have better food to eat, better houses to live in and better clothes to
Government Role Renewable energy and sustainable development Why Australian Government should lead the initiative? Governmental initiatives Supply side interventions: Rebates and feed-in tariffs Renewable energy is derived from sources that are naturally replenish-able and supply of energy from these sources is infinite. The main purposes served by using renewable energy are many such as generation of power, transport fuel production, and for heating of houses and other living places. Except the naturally occurring main difference
This "crippled operations" not only in local businesses but in companies located in the most affected regions that supplied materials for manufacturing. In other words, Japan suffered from a shutdown of many companies that provided certain parts for cars and electronics. For example, the area that was slammed by the tsunami was a "supplier hub" where companies like Hitachi produced special parts -- including a "…$2 sensor that is