Fiscal Cliff Impact And Decisions

1582 words, 7 pages

Intro Sample...


ECON 1

With the “Fiscal Cliff” coming close, it is important that we take a look at the effects of different kinds of cuts and increases in spending and taxes will have on the economy. The decisions that the Congress makes is very important because we are at a time where increasing GDP is very important to US recovery, as the US is just coming out of recession. Many believe that if no action is taken regarding the fiscal cliff, then the US will spiral back into recession, especially because GDP will drop so much. This is because a $600 billion dollar cut will have an even larger effect because of the multiplier effect. Overall, my opinion is that Congress should do something small, letting most but not all of... View More »

Body Sample...


The US always has some structural deficit; it’s just that now the structural deficit is rather high. Structural defecit is considered a liability because if lenders were to call upon the US to pay their dues, which makes up the structural deficit, then government spending would have to go to paying of debt instead of stimulating the economy, which would decrease GDP, and possibly send the US back into recession. This is a huge reason why policy makers are frantically trying to decrease the structural deficit, because of the liability
In the case of monetary policy, which is conducted by the Federal Reserve and its board of governors, the Fed is indeed facing the zero lower bound, where interest rates are almost at zero, and the Fed cannot really decrease the rates. Of course, the Fed cannot charge a negative interest rate. Generally to stimulate the economy, the Fed will decrease interest rates by buying T-bills to increase the money supply, which will increase investment spending which will increase aggregate demand in the economy, which will increase GDP. This helps to bring a nation out of recession. With tax increases and spending cuts, the US needs to counteract this with expansionary monetary policy, by increasing the money supply through a decrease of interest rates, but because of the zero lower bound, they can no longer do this. So now the Fed is using quantitative easing to buy other types of securities to increase the money supply. The goal is to increase the money supply without changing the interest rates too much. Currently the Fed is buying up mortgaged ...

Read More

Related Essays on Fiscal Cliff Impact and Decisions

  • Special Economic Zones In India

    21349 words, 86 pages

    Introduction to Economic Zones “Export else perish “ these are the words of first Prime Minister of India Pt. Jawaharlal Nehru. India being a continent like country having 30 states, more than 1000 languages and world second largest man power having diversified natural conditions right from Rain Forests of Kerala, Ice Mountains of Himalaya, Runn of Kuch to productive land of Bramahaputra has great potentials of world class export worthy products from various industries like Agriculture, Engineering, Chemicals, Software’s, Gems and Jewellry, Pharmaceuticals, Bio technology and many more.

    View Document »

    Catcher In The Rye

    948 words, 4 pages

    Catcher in the Rye: FLE In J.D. Salinger’s Catcher in the Rye, Holden Caulfield expresses his love of innocence as he sees it in others, in numerous ways. He demonstrates this through the way he talks about others and the way he acts around them. We learn that Holden lost his own innocence at an early age after his “perverty” (193) encounter with Mr. Antolini. Because of this, he cherishes, and wants to protect innocence in others. This is really a reflection of his desire to be innocent himself. Allie is a paragon of innocence to Holden. I know he’s dead! Don’t you think I know t

    View Document »

    The Sporting British

    17557 words, 71 pages

    CONTENTS |Introduction |2 | |Main part |3 | |The British. The main features of the British character. |3 | |History of british sport |5

    View Document »

    Final

    20238 words, 81 pages

    Once upon a time, there was a prostitute called Maria. Wait a minute. 'Once upon a time' is how all the best children's stories begin and 'prostitute' is a word for adults. How can I start a book with this apparent contradiction? But since, at every moment of our lives, we all have one foot in a fairy tale and the other in the abyss, let's keep that beginning. Once upon a time, there was a prostitute called Maria. Like all prostitutes, she was born both innocent and a virgin, and, as an adolescent, she dreamed of meeting the man of her life (rich, handsome, intelligent), of getting married (

    View Document »

    Anuj

    14522 words, 59 pages

    Background Paper submitted to the Committee on India: Vision 2020 Telecom Sector in India: Vision 2020 Manas Bhattacharya*, IES (Deputy Director General (Finance), Department of Telecommunications, Ministry of Communications & IT, Government of India) The views exposed in this paper are that of the authors not of the Planning Commission Telecom Sector in India: Vision 2020 by Manas Bhattacharya*, IES (Deputy Director General (Finance), Department of Telecommunications, Ministry of Communications & IT, Government of India) Introduction The purpose of this paper is t

    View Document »

    Wto And Its Effect

    9050 words, 37 pages

    PART A ? GENERAL AGREEMENT ON TARIFFS AND TRADE The General Agreement on Tariffs and Trade (GATT), multilateral treaty between governments, was signed in 1947 and came into force on 1st January 1948. Objectives: The primary of GATT is to expand international trade by liberalizing trade so as to bring about all around economic prosperity. The Preamble to the GATT mentions the following as its important objectives: 1. Raising standard of living. 2. Ensuring full employment and a large and steadily growing volume of real income and effective demand. 3. Developing ful

    View Document »

    Development Of Children In Their Early Stages - Observation Paper

    2633 words, 11 pages

    FCNS 230 – Child Development Section 1: Introduction This project is about seeing the development of children in their early stages. On March 15, 2016, I went to Loving Touch Daycare to observe Airiyelle Coleman. When I was a kid, I used to go to this daycare. Their curriculum is to help develop the social skills and teach the children the basic skills they need for when they go into kindergarten in elementary school. They learn new material each day and also retain previous information taught before. Before going into the observation, I did not know Airiyelle beforehand. I met her and her

    View Document »

    Ikea Imar

    16022 words, 65 pages

    |[pic] | | [pic] [pic] Members: Ms. Sarah Burangi (2103703) : Ms. N.Lin (2053147) Tutor : Mr. L. Wijckmans Date: 04 June 2007 Preface This report is a combination of the effort of two students Na Lin and Sarah Burangi submitted to fulfill the requirements for an MSc in Information Systems particularly the International Marketing Module. The

    View Document »

    Big Apple

    11110 words, 45 pages

    Table of Contents Executive Summary 5 Marketing Strategy 6 Background 6 Company 6 Products 7 Situational Analysis 7 Market Share 8 Goals 8 Strategy 9 SWOT Analysis 9 Strengths 10 Weaknesses 11 Opportunities 11 Threats 12 Customers 12 Competitors 14 Positioning 14 Competitor Market Share 15 Collaborators 15 Role of Partnerships 15 Complimentary Businesses 16 Climate 16 Political/Legal 16 Economic 16 Technological 17 Social/Cultural 17 Issues Analysis 17 Personal Computer Market 17 New Products 17 International Operations 18 Digital rights management system (DRM) 1

    View Document »

    Coke

    9813 words, 40 pages

    Inroduction Within this report the macro-forces of an industry will be analysed, continuing on to compare the marketing mix of two organisations within that industry. All organisations - with their suppliers, customers, competitors, and publics - have a macroenvironment. This environment consists of macro forces that act on and affect the organisation and are generally outside their control, as opposed to the micro forces which also affect the organisation, but are generally under their control. The marketing mix is the term used to describe how an organisation goes about developing a product

    View Document »

More Popular Essays

Research help is just moments away!