GM 545 You Decide

Topics: Monetary policy, Central bank, Federal Reserve System Pages: 1 (379 words) Published: April 6, 2014
You Decide Recommendation
The economy has been in a rough shape for a number of years. Many people have lost their jobs, their homes, their savings, and their confidence. Although the recession lasted for a while, the nation is going through a recovery mode. As the new senior economic advisor to the President of the United States, I need to recommend a plan of action to help curve inflation, unemployment, and economic instability. First, I have to take a look at what my colleagues recommend and take into account our monetary and fiscal policies. According to Raymond Burke, my economic consultant, his recommendation is to lower interest rates to help businesses and consumers get back on their feet. However, Kathy Lee, a former advisor, believes that raising taxes and reducing government spending can help the current state of the economy. Patricia Lopez, a consultant to the Federal Reserve, believes selling bonds and leaving interest rates as a viable solution. Finally, Allison Tanney, also an economic consultant, believes the Federal Reserve Board needs to increase the money supply by buying bonds, raising interests, and raising reserve requirements. After reviewing the recommendations from these consultants, I do not believe that increasing taxes and raising interest rates are good ideas. I believe following through with those actions only hurts the people of our country and does not help the economy recover. If we increase interest rates and increase taxes, every person from each class will be affected negatively. Although raising taxes and interests rates would be a lot more beneficial and a quicker way to help the economy recover, I believe the morale of our citizens is more important. My final recommendation would be to keep the interest rate at the same rate, lower taxes, and to reduce our government spending on the military and use that spending towards creating jobs, funding the education sector, and supporting small businesses. I would also recommend...
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