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Macro Economics
Politicians and Macro Economics
In America, the duty of running the economy belongs to members of congress. Some decisions they make concerning the economy shoe they have vast knowledge of macroeconomics. Although, some of the members of congress are lawmakers and hardly understand the role they need to play for the economy. Macroeconomics involves studying and decision making of the whole economy and contributors of the economy within the country surrounding. During his administration, George Bush demonstrated his knowledge of macroeconomics when he cut down taxes. This is a monetary policy in macroeconomics increasing income disposable to individuals. Increase in disposable income increases the level of savings and investments. In an economic cycle, these are injections into the economy, which promote economic independence. This showed that some politicians understand macroeconomics, but it is hard to generalize for all of them as these congressmen come from different backgrounds.
How to Reduce Deficit
Politicians plan...
Politicians are a part of the government they have access to taxes and tax behavior, and they plan to use this to reduce the deficit. If properly executed fiscal policy can reduce this deficit, but the problem is getting all taxpayers satisfied. Taxing the top earners in an economy a higher percentage than the other citizens will be unjust to them. According to them, it is not a crime to earn more money as it is they believe they earn more because they work harder than others do. To reduce this deficit taxing those earning more than $250,000 is not a perfect plan. Reducing taxable percentage and reducing government spending if monitored over time is a brilliant plan. This reduction will also involve simplification of corporate and individual tax. In the end, reducing taxes will increase investments, which is a sure way to increase taxable incomes .
Too Big to Fail
The way the government handled the economic crisis when some companies were at the risk of failing raised much controversy. The government…
A function of the government that deserves elimination is spending too much money on the armed forces with intentions of maintaining peace in other countries. These countries that benefit, always end up complaining and ungrateful and yet the American citizen get inadequate services due to this spending. The government should eliminate Federal Reserve in the country. Federal Reserve keeps the government in debt, as the government cannot withdraw enough money to pay its debts. Since the creation of the Federal Reserve in 1913, the currency continues to depreciate. This shows that the Federal Reserve does not in any way control the strength of the country's currency.
Concepts of Macroeconomics
In the perishable goods market, a concept that influences business is the demand and supply concept. Sellers must ensure goods supplied to the market are enough to meet the demand gap. Extra goods on the market will need more time to sell and as the goods are perishable, they will go sour. Low supply will not meet the demand gap hence create inflation and lack of consumer satisfaction in the market. It is easier to sell non-perishable goods. Sellers can consider the concept of inflation and hope to get higher prices for their goods. They can hold goods and still have them safe for consumption after a long period.
For the period of the late 1960s and early 1970s, West Germany strived to assist the dollar. The United States and many other nations pushed West Germany to reassess so as to make up for the dollar excess. (Germany in the World Economy) At last, after escalating waves of conjectures, the Bretton Woods system had a collapse in August 1971. All through the post-Bretton Woods period, the deutsche mark stayed
Economic Impact of Gambling Along with "Wine, Women and Song," gambling was often considered a vice. Indeed, gambling has been a part of human civilization and culture since times immemorial. Gambling has paralleled human evolution. One can easily find instances of gambling in the Bible and other historical references. Gambling can be defined as staking ones material possession for profit. In a broader definition, gambling can also be considered a pact
economic growth and inequality necessarily compliments? Economic Growth and Inequality The relationship between economic growth and economic inequality has been thoroughly studies throughout the decades. Some of the theoreticians in the field claim that economic inequality has a positive effect on economic growth, while others have concluded that the effect is actually a negative one, because of the costs it implies, and a more economically equal situation would be preferable. However, practice
The article concedes, however, that declining business confidence is an absolute danger that must be dealt with and the government not being an active partner with businesses and in favor of the recovery will just make things worse (Pollin, 2010). A similar point is made in a different article that states that the role of fiscal policy in pushing an economy towards recovery cannot be over-estimated or over-analyzed because of
U.S. Macro economy economy which was considered to be the world's largest has still not been able to recover completely from the financial crisis and resulting recession that hit in 2008. At the national level, spending increase to more than 25% of GDP in 2010, later in 2011 gross public debt exceeded 100% of GDP. The process of recovery for U.S. economy in the first quarter turned out to be weaker
Domestic Macroeconomic Issue Economic Growth and Development Macroeconomic stability does not single-handedly assure high rates of economic growth. Factors such as unemployment, inflation, national income, and economic growth and development are the most important determinants of economic prosperity at the macro level (Driessen 2001 p. 40). Economic growth and development is one of the macroeconomic issues with considerable impact on the overall GDP of an economy. A country attains economic growth when