U.S. Economy

The USA economy

Economic recession takes place when there is a fall in demand by consumers due to slow down in money circulation making consumers to have less money in their hands. When there is a slow growth, most businesses fail to expand making them not to hire new workers. In this case, recession is said to be underway although, it only affects people when layoffs begin. The U. S has become a victim to economic recession and most experts have given their views regarding the situation. For this case, the Government of the U.S. needs to know that they are the key players for stopping recession and reversing the economy back to the growth path. The government should also focus on how to increase money circulation, the debt level of per capita and any other causes of recession.

According to Raymond, the U.S. president should lower the interest rates to enable business and consumers to get back on their feet, an argument that is absolutely plausible. This is because inability to access credit should never be barriers for an enthusiastic entrepreneur to starting a business, therefore reducing interest rates will fortunately stop this. I therefore believe that, the U.S. president should have his hands to steer this aspect by balancing interest rates as well as inflation. When inflation increases, interest rates should also increase to discourage borrowing.

The other significant argument is by Kathy Lee that the U.S. president should raise taxes while reduce government spending. The U.S. government should increase tax to encourage the citizens of U.S. with enough money from businesses to pay tax which will increase circulation of money and spur the economy upwards fro the god of all. . On the other hand, I also agree with Patricia advice regarding the Federal Reserve. It is true that government should encourage selling of bonds and raising the requirement of the bank reserve since it will improve the stability of many banks to customers' deposits yet leaving the interest rates intact so that people can still invest in the bonds and be left with money in their hands a situation that would be nullified if the bonds are issued yet interest are raised.