Essay on how to improve the economy as president

Topics: Inflation, Monetary policy, Macroeconomics Pages: 4 (1510 words) Published: August 1, 2006
As President I would like to address some issues along with my council. In this essay I will address the problems at hand and give some solutions that I feel will help to jumpstart our economy. First I would like to mention that our population has grown substanually by 2,000,000 in the last year. The labor force has also increased with the population. As noted in the report 1,360,000 have entered the labor force in the past year. According to the report the increase of unemployment is greater than the addition to the labor force. The natural rate of unemployment is at 4%. The actual rate of employment has jumped from 4.5 to 5.5 which has me concerned. What really has concerned me is that the economic output is on a 60% decline. Though we have taken a major hit the report shows that are trading partners have also been affected and there GDP growth has been reduced to 0.6 compared to the U.S at 0.8. We are steering toward a recession and we must do something to improve our growth. With a couple of adjustments and help from the Federal Reserve board we can pull the economy into recovery.

The first issue I would like to address is the growth rate of our economy. It has substantially decreased over the last year by 1.4 percent. We must work to increase consumer spending. There are a couple of ways to do so. First we can do as Congressman Doom suggests and raise the minimum wage. Doing so has advantages as well as disadvantages; by raising the minimum wage it will assist the poor and trigger higher consumption expenditures. Raising the minimum wage will increase productivity in our workforce. Congressmen Doom addressed his concern of jobs going overseas. I am aware that raising the minimum wage may push workers out of the job market and businesses may replace workforce with technology.

Tax cutes will also help to trigger the economy to grow. There are numerous methods of stimulation. First we can cut taxes on businesses. We can create tax cuts on capital...
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