Eco372

In: Business and Management

Submitted By darin1711
Words 344
Pages 2
The Following are several recommendations to our President regarding our government spending as well as a few tax based economic factors. First we will take a look at our government spending. The initial recommendation is related to lowering our interest rates, lowering interest rates will do several things, one it will increase the money supply, in turn aggregate demand increases growing the bank accounts of many Americans. Most of all the positive affects it will play for those Americans that run small businesses will have no trouble adding expenses to their yearly budgets, further adding otherwise unemployed Americans to the expanding labor force, all this leading to an escalation in the US output ultimately increasing the GDP.
As were all-aware we have a looming Fiscal cliff, it seems were all doomed according to the media, are we? Can new and old tax codes make or break a society? “The fiscal cliff is political shorthand for the combination of spending cuts and tax increases scheduled to hit Jan. 1, 2013. It's the result of the expiration of the President Bush-era tax cuts combined with $1.2 trillion in automatic reductions in federal spending made last summer as part of the deal to raise the debt ceiling” ("Money Morning", 2012). To think these tax breaks and spending cuts alone will propel us out of this recession is wrong. Although, investing in the labor markets, creating infrastructures, growing our law enforcement and financing the correct areas of the education will inject both tax dollars and tax revenue from the creation of said jobs. Raising the revenue of the American public will eventually permit the Government to borrow less, thus reducing the swelling debt of the US. Our Recommendations include a balance between government spending and efficiently maneuvering our tax code, through lowering tax breaks and lowering interests rates no…...

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