This paper relates to what I have learned in the Macroeconomics class. For this final term paper; I will write about the U.S. federal government operations and how government leaders handle macroeconomic issues in our economy. We will discuss a couple of current economic issues and what the federal government is doing to reach solutions. I will also address U.S. unemployment issues, international trade, fiscal and monetary policies, and methods of alternative energy, along with the Federal Reserve’s role to confidently curb recession and avoid inflation The U.S. federal government is actively involved in assuring national security through counterterrorism techniques. They perform strategic planning to give surety of macroeconomic financial stability, and economic development. Government provides financial, political, and social stability in our economy and controls macroeconomic aggregate demand and aggregate supply. Congress and the President control fiscal policy. The Federal Reserve has complete control of the monetary policy. “Fiscal policy is the changes that Congress and or the President make in taxes and public spending that has an impact on the national Gross Domestic Product (GDP) data.” (O’Sullivan, p.212) The GDP (commerce) data is the total market value of domestic goods and services produced only within the geographic area of a country on an annual basis. In accordance to an eHow Contributor, Shane Hall, 2011, reports that, “the burden of various types of taxes distorts funds in the marketplace because the expenses affect the cost and income of goods and services. In the supply side of economics, an increasing tax rate will affect the economic activity and hinder the growth of the economy. (Hall, 2011) In connection ...
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...rd of Governors of the Federal Reserve System (FBR), Release and last update March 15, 2011, Press Release: FOMC statement http://www.federalreserve.gov/newsevents/press/monetary/20110315a.htm
Ensinger, D., June 20, 2011 - 8:40 AM, “Bill to Repeal NAFTA Stalled in the House,” Copyright 2007 Economy in Crisis http://www.economyincrisis.org/content/bill-repeal-nafta-stalled-house
Heffner, T., June 20, 2011 – 10:05 AM, “Unethical Predatory Practices,” Copyright 2007 Economy in Crisis http://www.economyincrisis.org/content/unethical-predatory-practices
Miller, R, L., (2010), Economics Today, (15th edition), Boston: Pearson Addison-Wesley
Petruno, T., June 18, 2011, U.S. Economy: Federal Reserve: “More Fed Stimulus? - Don’t Count on It!” Copyright 2011, The Los Angeles Times http://www.latimes.com/business/la-fi-petruno-20110618,0,5811817.column
Teslik, Lee. "Backgrounder: The U.S. Economic Stimulus Plan." The New York Times, January 27, 2009.
...hey are can cause national debt. This would lead to other countries to lose faith in the dollar resulting in loss or trade and investors. The dollar will be worth less and less if nation is in high debt. People will also be affected, when you have less money you spend and buy less due to increased prices which can causes problems in the economy such as a recession or worse a depression. Budget Deficit calls for the government to let cost exceed national income and use of monetary policy to jump start the economy. The government must be careful when choosing the best way to build the economy up. If the policies fail, they can lead the nation into many problems as stated above. This is why regulating money, trade, and the economy is an important part in government tasks. In the end, citizens want the best policy to promote the U.S. into a stabile and secure economy.
Federalism plays an integral part in the growth and development of the United States of America and is a key factor in determining the basis of power in this country. Clearly, the term federalism can be understood in many different ways pertaining to each person's view, but it can be more broadly defined in terms of the separation between the state and federal government. Thomas E. Patterson defines federalism as, “the division of sovereignty, or ultimate governing authority, between a national government and regional (that is, state) governments. Each directly governs the people and derives its authority from them” (Patterson 74). He then goes on to give a more basic definition with, “American Federalism is basically a system of divided powers” (Patterson 74). But federalism is more than just a word with a definition. It is hard wired into the constitution because the framers knew how important this division of power would be for the development of America and to ensure power would ultimately reside with the people.
Jake Clawson Ethical Communication Assignment 2/13/2014. JPMorgan Chase, Bailouts, and Ethics “Too big to fail” is a theory that suggests some financial institutions are so large and so powerful that their failure would be disastrous to the local and global economy, and therefore must be assisted by the government when struggles arise. Supporters of this idea argue that there are some institutions that are so important that they should be the recipients of beneficial financial and economic policies from government. On the other hand, opponents express that one of the main problems that may arise is moral hazard, where a firm that receives gains from these advantageous policies will seek to profit by it, purposely taking positions that are high-risk, high-return, because they are able to leverage these risks based on their given policy. Critics see the theory as counter-productive, and that banks and financial institutions should be left to fail if their risk management is not effective.
Over the past few years we have realized the impact that the Federal Government has on our economy, yet we never knew enough about the subject to understand why. While taking this Economics course it has brought so many things to our attention, especially since we see inflation, gas prices, unemployment and interest rates on the rise. It has given us a better understanding of the effect of the Government on the economy, the stock market, the interest rates, etc. Since the Federal Government has such a control over our Economy, we decided to tackle the subject of the Federal Reserve System and try to get a better understanding of the history, the structure, and the monetary policy of the power that it holds.
"The Great Recession." State of Working America. Economic Policy Institute, n.d. Web. 24 Apr. 2014.
With many unemployed and the market reaching The Great Recession as many economist call it, the Federal Reserve started to step in to try and save the economy and some of the economic crises that were occurring. The Federal Reserve began to buy many financial assets from banks who were in trouble by these lenders and suppliers who had loans the...
Mishkin. F. C. (2009). The Financial Crisis and the Federal Reserve. NBER Macroeconomics Annual, 24, 495-508
In conclusion, the job of Mr. Greenspan and the Federal Reserve is not an easy one. Whenever money is involved there is always great potential for problems. With the monetary policy always an issue, Mr. Greenspan has to constantly come up with ways to keep our economy steady despite changes nationally and internationally. This recently became a relevant factor. At the very moment Mr. Greenspan was expected to accept his ultimate reappointment as Chair of the FED he was in the process of making it painfully clear that he was not going to allow the rapidly growing economy to foster inflationary imbalances that would undermine the economy's record economic expansion. This and other important factors caused several short-term interest rate increases. This saga continues but the FED with all they have to do has steadily maintained an economy to be proud of for now.
There is perhaps no other political issue in our contemporary society that is more pertinent, pervasive, and encompassing than a nation’s economy. From the first coins used in Greece and the Asia Minor in the 7th century BCE, to the earliest uses of paper money, history has proven time and time again that the control of a region’s economy is absolutely crucial to maintaining social stability and prosperity. Yet, for over a century scholars have continued to speculate why the United States, one of the world’s strongest and most influential countries, has one of the most unstable economies. Although the causes of this economic instability can be attributed to multiple factors, nearly all economists agree that they have a common ancestor: the Federal Reserve Bank – the official central bank of the United States. Throughout the course of this paper, I will attempt to determine whether or not there is a causal relationship between the Federal Reserve Bank’s monetary policies and the decline of the U.S. economy. I will do this through a brief analysis of the history and role of this institution, in addition to the central banking system in general. In turn, I will argue that the reckless and intentional manipulation of the economy by the Federal Reserve Bank, through inflation and the abolishment of the gold standard, has led to the current economic crisis in the United States.
Meltzer, Allan. Learning about Policy from Federal Reserve History. Rep. Social Science Research Network, 04 Feb.
...company workers being affected by the financial crisis. We don’t want to point fingers here only assess the ethical dilemmas that these companies face. Subjective human judgment opens up for the possibility of undesirable human biases and manipulation. However, with or without human judgment, financial models of credit risk are subject to manipulation, both legally and fraudulently.
In November of 2004, the United States ran a fifty-four billion dollar trade deficit, translating to over 600 billion for the entire year. This deficit is a result of the disparity between the amount of goods that the US imports and the amount it exports. To equalize this deficit in its current account, the American government sells assets from its capital account, often to foreign investors. This phenomenon is seen as a serious threat to the success and continued growth of the nation’s economy, tied in with popular concerns that the United States is losing its competitive and dominant edge in global economics. The traditional economic theory employed to solve this problem calls for a return to mercantile protectionism, through use of tariffs and subsidies to drive up the price of imports and lower the price of exports. Running contrary to this is a second option: increasing domestic savings and lowering government spending. These theories both aim to decrease American dependence upon foreign imports and investment, and ultimately equalize the enormous trade deficit that currently exists.
The movie “Glengarry Glen Ross” presented a series of ethical dilemmas that surround a group of salesmen working for a real estate company. The value of business ethics was clearly undermined and ignored in the movie as the salesmen find alternatives to keep their jobs. The movie is very effective in illustrating how unethical business practices can easily exist in the business world. Most of the time, unethical business practices remain strong in the business world because of the culture that exists within companies. In this film, the sudden demands from management forced employees to become irrational and commit unethical business practices. In fear of losing their jobs, employees were pressured to increase sales despite possible ethical ramifications. From the film, it is right to conclude that a business transaction should only be executed after all legal and ethical ramifications have been considered; and also if it will be determined legal and ethical to society.
The economy tend to move from boom to recession, it is difficult for government to maintain and achieve macroeconomics objectives. At this time, there are “conflicts between government macroeconomic objectives”, which is this extended essay main theme. This essay will look at the government macroeconomic objectives, the conflicts between macroeconomics objectives, the best policy or mixture of policies to minimize the conflicts between macroeconomics objectives and recommendations, which are classified as main objectives and additional objectives.