Reprt_N_Unemployment

Mr. President one understands that based off the unemployment and inflation rate data that there are actions that need to be taken. Mr. President I believe we should distinguish between the country’s fiscal and monetary policy. Mr. President we should focus on lowering the interest rates to further help businesses and consumers get back on their feet. To do so we need to expand the country’s fiscal and monetary policy by working with Congress to increase government spending and lower taxes .First I wish to agree with Mr Raymond Burke that we need to lower the interest rate because this will encourage consumption and investment. I also agree with buying bounds as Allison Tanney said because is putting money into circulation by paying investors who has these bonds, so the money supply increase. However I do not agree with rise taxes as Kathy Lee said because that means that less money go to the economy, and as consequence there will be an increase in prices and/or cut jobs. Am also not in agreement with reducing government spending as Kathy Lee said because this would exacerbate the situation with more contraction in the gross domestic product. Patricia Lopez’s idea suggestion to leave the interest rate intact I have an objection to as it would not be a stimulus to consumption or investment to the economics. I do not agree to leave interest rate intact as said because I do not agree with selling bounds and raising the bank reserve as Patricia Lopez said because this action can lead to restrain lending and reducing the rate of economic growth. The recommendations are First, The government will need to apply expansionary fiscal policy: these involve increasing government spending, increasing transfer payment (Social Security, unemployment compensation, or welfare. The available funds to run developmental programs will be reflected in the fiscal policy of the US government. Since there is a slump in our economy and the GDP is not increasing, the government will need to provide stimulus to the economy by proposing tax cuts. This will allow more money to be released for business and industrial activities. This can be achieved through monetary policy where the bank would lower the interest rate to release more money at reduced interest rates to industries and agriculture to promote developmental activities.